(a) Recommend that the supply of water be free of charge in all respects. (b) Recommend that the users pay a one time fixed

Question

You are involved in setting up a water supply project in a remote area. Full recovery of cost is impossible in any case. The income levels in the area are low and 25% of the population is below *** line (BPL). When a decision has to be taken on pricing you would...

(a) Recommend that the supply of water be free of charge in all respects.

(b) Recommend that the users pay a one time fixed sum for the installation of taps and the usage of water be free.

(c) Recommend that a fixed monthly charge be levied only on the non-BPL families and for BPL families water should be free.

(d) Recommend that the users pay a charge based on the consumption of water with differentiated charges for non-BPL and BPL families.

Answer 1

(d) (a) It would be practically feasable to make the supply of water free of cost.

(b) A one time fee for taps can be easily afforded by the non – BPL families but not by the BPL families.

(c) This is again not a very feasable solution for it may lead to a lopsided usage of water.

(d) An extremely feasable option. This will atleast ensure that the consumption of water is well regulated and the non – BPL families will not feel exploited.