Navi Mumbai Municipal Corporation (NMMC) has initiated various financial reforms with improved accounting system, tariff rationalization, improved bill collection and cost recovery.
NMMC issues bi-monthly water bills (metered and flat rate) prepared on a GIS-based water bill program wherein each consumer is identified by consumer number, location, and serial number of the water meter. The whole billing operation is supervised by a nodal deputy engineer of NMMC. The corporation gives a one-month duration for bill payment, which is accepted at ward/head office and various banks. Defaulters are charged penalties and disconnection after three notices.

Unauthorized connections are detected and legalized/disconnected within a given period of time. In case of faulty meters, a penalty is imposed initially and disconnected after six months. The corporation has a computerized accounting system based on accrual and double entry.

The existing tariff structure cross-subsidizes the residential, gaothan and slum consumers at the cost of commercial and institutional consumers.

• Identifying illegal connections and legalizing/disconnecting them leads to increased revenues
• Simplified (computerized) billing procedures
• Bill paying facilities made easy and accessible
• Disconnection policy for defaulters of bill payment enabled customers to pay bills on time, and hence improved revenues
• Percentage of bills recovered (including arrears) from the year 2003-04 is more than 100%
• Cost recovery in the last five years varies from 68% to 84%

The initiative will be sustainable if the system is managed efficiently, with implementable policies, the right kind of tariff, effective customer awareness campaigns, and teamwork. Can be replicated.

For further details, contact:

Mr. Vijay Nahata IAS
Municipal Commissioner,
Navi Mumbai Municipal Corporation