Pune’s civic body is under financial strain as its water procurement cost from the Khadakwasla dam has surged over threefold in the last five years from ₹56 crore in 2020–21 to a staggering ₹202 crore in 2024–25.
This sharp rise is not just a reflection of urban expansion but also the result of the Pune Municipal Corporation (PMC) consistently exceeding its allocated water quota. Officials from the irrigation department confirmed that the mounting costs include penalties for lifting more water than the approved limit of 11.6 thousand million cubic feet (TMC) from the Khadakwasla reservoir. Additional charges were also levied for the release of untreated sewage into natural water bodies, further compounding PMC’s dues. These dues, some pending for over seven years, are now being actively pursued by the irrigation authority.
The civic administration attributes the increased water consumption to the expansion of the city’s jurisdiction following the merger of several adjoining areas. As per PMC data, the civic body is permitted to draw 16.6 TMC annually — including allocations from the Khadakwasla (11.6 TMC), Pavana (0.34 TMC), and Bhama Askhed (2.67 TMC) dams. An additional 1.75 TMC is sanctioned for the newly merged areas. However, actual drawal stands at approximately 21 TMC, significantly breaching the official allocation. In response to the overflow, the irrigation department has demanded that PMC clear all pending payments, which include standard annual charges and fines for overuse. A senior irrigation official noted that the water tariff was revised in 2022. The revised rate requires civic bodies to pay ₹0.55 for every 1,000 litres used for domestic purposes, while water for industrial use is charged at ₹11 per 1,000 litres. Civic officials argue that the higher tariffs are unjustified, claiming that most of Pune’s water consumption is for residential use and not industrial operations.
They allege that the irrigation department wrongly applied industrial rates in calculating bills, inflating the dues. However, irrigation authorities insist that charges are in accordance with the terms of the existing agreement between the two bodies. The standoff between the PMC and irrigation officials highlights a deeper issue in urban resource governance — the widening gap between growing urban demand and limited natural resources. While the city continues to expand in both population and area, its infrastructure for water supply and treatment has failed to scale proportionately. Experts warn that the unsustainable extraction of water from natural reservoirs not only leads to financial penalties but also risks future water security. Overdrawing can disrupt agricultural supply in the district and contribute to seasonal shortages, particularly during dry spells. Moreover, untreated water discharge into rivers further exacerbates ecological damage, impacting both biodiversity and downstream water quality.
The civic body’s plea for tariff revision underscores its struggle to manage rising operational costs while meeting the needs of a growing urban population. Despite the justifications offered, PMC’s consistent breach of the permitted quota suggests a systemic failure in water planning and management. It also raises questions about accountability mechanisms in place for monitoring water extraction and environmental compliance. The ongoing conflict between the two government agencies reveals the challenges Indian cities face in balancing rapid urbanisation with sustainable resource use. As Pune prepares for future growth, stakeholders say that transparent water accounting, investment in wastewater treatment infrastructure, and collaborative urban planning are critical.
Ultimately, while the PMC seeks a reduction in its water bill, experts stress that financial relief must not come at the cost of environmental sustainability. Without urgent reforms and responsible water governance, the rising cost of water in Pune may not only burden the city’s finances but also its future
Pune faces rising water bills for lifting more than permitted supply
