The Delhi government on Friday announced a major overhaul of the infrastructure charges (IFC) for water and sewer connections, replacing the existing area-based calculation system with a water demand-based model. The new policy offers concessions of up to 70% for several categories of colonies, aiming to reduce the financial burden on residents and simplify the process.
New Calculation Method
Chief Minister Rekha Gupta stated that the revised policy is designed to enhance transparency and ease of compliance. Under the new framework, IFC will be calculated based on actual water demand rather than the total built-up area of a property. This shift is expected to make the system more equitable and citizen-friendly.
Rebates and Concessions
The government announced a 50% rebate on water and sewer IFC for properties in E and F category colonies, and a 70% rebate for G and H colonies. Additionally, residential dwelling units up to 50 square metres built on plots larger than 200 sqm will receive an extra 50% concession. The Municipal Corporation of Delhi classifies residential colonies into eight categories, with A being the most premium and H the most basic.
Officials noted that plot size eligibility will be determined through property documents such as sale deeds, conveyance deeds, and registered GPA documents. For unauthorised colonies, architect-signed plans will be accepted for assessment. Importantly, IFC will apply only to properties or units built on plots exceeding 200 square metres; plots below this threshold remain exempt, as confirmed by Water Minister Parvesh Verma.
Additional Concessions
Additional concessions have been announced for charitable and religious institutions. Organisations registered under Section 12AB of the Income Tax Act and places of worship will receive an additional 50% rebate on the applicable IFC.
Verma clarified that IFC will be levied only on new or additional constructions. "Redevelopment projects where water demand remains unchanged will not attract any additional charges," he added.
Sustainability Incentives
To encourage sustainable infrastructure, commercial and institutional properties with zero liquid discharge systems and operational sewage treatment plants complying with CPCB and DPCC norms will receive a 50% rebate on sewer IFC. However, if inspections find these systems non-functional, the concession will be withdrawn, and a daily penalty of 0.05% on the concession amount will be imposed.
Comparative Figures
The government provided comparative figures illustrating the impact of the new policy. For a residential property above 200 sqm with 300 FAR and four floors in A and B category colonies, IFC has been reduced from Rs 13.2 lakh to Rs 5.4 lakh. In E and F colonies, the amount comes down to Rs 2.7 lakh after rebate, while in G and H colonies, it reduces to Rs 1.6 lakh.
Similarly, for an industrial property on a 1,000 sqm plot with 150 FAR and four floors, IFC has been cut from Rs 57.7 lakh to Rs 8.9 lakh in A and B colonies. After concessions, the charge falls to Rs 4.5 lakh in E and F colonies, and Rs 2.7 lakh in G and H colonies.
Minister's Remarks
Verma criticized the previous system, calling it "an instrument of harassment" where residents often faced demands of Rs 15-20 lakh due to complex area-based calculations. "The new policy will make the system transparent and citizen-friendly," he claimed.
