Thiruvananthapuram: Kerala Water Authority (KWA) incurred a loss of Rs 4.66 for every 1,000 litres of drinking water supplied in 2024-25, according to water resources department data.The cost of production and distribution of 1,000 litres stood at Rs 24.56, while the revenue realised was Rs 19.90. The gap translated into an annual loss of Rs 317.63 crore for the financial year. The cumulative loss now reached Rs 7,156.76 crore. KWA operated in a revenue deficit since its inception, with non-plan grants from state govt partially offsetting the shortfall.
Govt-approved water tariffs remain KWA’s principal source of income. Expenditure, however, steadily increased, including salary and pension commitments, electricity charges, maintenance costs and loan repayments with interest. Tariff revisions haven’t kept pace with rise in operating costs.Under Water Supply Regulation Act, 1986, water charges are to be fixed on a no-profit, no-loss basis. Also, Section 15(iii) of the Act bars KWA from revising tariffs without prior govt approval.Political sensitivity surrounding tariff revision has surfaced in the assembly earlier. On Feb 7, 2023, opposition raised the issue in the House. Defending the hike at the time, water resources minister Roshy Augustine said KWA’s consolidated loss was Rs 4,911.42 crore. He cited mounting dues to Kerala State Electricity Board Ltd, which he said was Rs 1,263 crore, and rising chemical costs.Opposition countered that successive increases in water tariff, alongside hikes in power and fuel prices, burdened households. Opposition leader V D Satheesan argued that while the minister described the hike as 1 paise per litre, the monthly impact on households was significantly higher. He alleged high levels of non-revenue water and inefficiencies within KWA, contending that distribution losses were being passed on to consumers. The 2024-25 figures now placed in the assembly show that the gap between cost and recovery continues and has increased.As of Dec 2025, unpaid dues from institutional consumers add further strain. Public sector undertakings owe Rs 18.44 crore, while govt institutions account for Rs 123.24 crore. However, there are no large private institutions with arrears exceeding Rs 25 lakh. Together, public and govt sector entities account for Rs 141.68 crore in pending dues.Augustine told the assembly that KWA initiated multiple steps to recover arrears from defaulters, though these seemed to be half-hearted measures. He said in 2022, water resources department wrote to all department secretaries directing clearance of pending water charges. Since then, KWA managing director has issued annual reminders to heads of departments.In 2023, the managing director wrote to finance secretary seeking deduction of arrears at source from local self-govt institutions and govt establishments, and transfer the amounts to KWA.According to Augustine, officers from KWA headquarters visited defaulting institutions, and section-level squads were deployed to intensify recovery. Departments willing to settle dues are covered under ‘one-time settlement scheme’, while revenue adalats were organised to resolve pending amounts with permissible concessions. For other consumers, measures include issuing disconnection notices, cutting water supply in cases of non-payment, allowing instalments of up to 10 payments for large pending bills, initiating revenue recovery proceedings and sending SMS reminders urging payment.
