Delhi Government Plans Major Relief by Overhauling Infrastructure Charge Model

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The Rekha Gupta–led Delhi government is preparing for a significant reform that could substantially reduce the financial burden on residents constructing homes in the national capital. The administration is actively considering changes to the infrastructure charge—a fee collected to support water supply arrangements during property construction.

A high-level meeting recently reviewed two proposed models that may either replace the current system or function alongside it. The aim is to simplify charges and make water connections more affordable, especially in colonies where the existing fees are disproportionately high.

Current Infrastructure Charge Structure

At present, the infrastructure charge varies depending on whether the property is located in a planned or unplanned colony, and on the category of the area.

• In A and B category regularised colonies:
  Residential users pay ₹255.27 per sq ft.
• In E, F, G, H categories (many unregularised):
  The charge is ₹63.81 per sq ft.

For commercial properties:

• A–B category: ₹446.70 per sq ft
• E–H category: ₹127.63 per sq ft

For institutional properties:

• A–B category: ₹319.07 per sq ft
• E–H category: ₹95.72 per sq ft

This significant difference exists despite similar water requirements across different categories.

What Officials Are Saying

A senior Delhi Jal Board (DJB) official confirmed that the government is examining ways to make infrastructure charges lighter, especially in high-cost colonies. One major move could be discontinuing the annual 10% increase in the charge.

If implemented, this step would provide immediate relief to families hesitant to apply for water connections due to rising fees.

Proposed Models Under Review

1️⃣ Consumption-Based Charging Framework

• Charges would be linked to the number of people residing in the property.
• In multi-floor buildings, water usage would be estimated assuming at least five residents per floor.
• This model shifts the focus from colony category to actual water consumption and family size.
• A one-time payment option is also being considered to reduce long-term financial liabilities.

2️⃣ Reduced Rates Within Existing Colony-Based System

• The current category-based structure would continue, but the charges would be reduced.
• In A-category colonies, rates may be slashed by nearly 50%.
• Properties up to 200 sq meters may get complete exemption from infrastructure charges—major relief for small families and middle-class households.

Background

In 2019, the infrastructure charge was scrapped entirely.
However, it was reintroduced in 2020 after the elections, with rates linked to built-up area and colony classification—resulting in steep price escalation.

Officials are now evaluating the new models based on:

• Financial viability
• Ease of implementation
• Fairness across different property types