Amid a delayed monsoon and water shortages in parts of Mumbai, water tanker prices have surged after the Brihanmumbai Municipal Corporation (BMC) cut water supply across several areas.
Tanker rates for both potable and non-potable water have increased by Rs 200 to Rs 500 over the past week, with further hikes likely if the shortage continues, tanker suppliers and real estate developers told NDTV Profit. Industry players estimate prices could surge two to five times in the coming days amid tightening supply.
Currently, non-potable water costs Rs 1,800 to Rs 2,000 from Rs 1500-1800 per 10,000 litres, up 10-30%. Potable water costs Rs 2,500-3,500 from Rs 2300-3300 per 10,000 litres, a 6-25% hike.
The development comes amid delay in monsoon and water level in lakes. The southwest monsoon typically reaches Mumbai by June 11, its arrival has been delayed by more than a week this year. Additionally, rainfall concerns due to El Nino have further raised worries about the replenishment of these lakes. At present, water stock in Mumbai lakes has dropped to 10.35%. The BMC data showed that the seven water-supplying lakes were at a critically low level of under 10% as of 6:00 a.m. on Thursday.
ALSO READ: Mumbai Lake Water Levels Fall Below 10%; Delayed Monsoon Raises Supply Concerns
How Is Price Hike Impacting Real Estate Sector?
BMC has reportedly stopped water supply to construction sites amid water crisis. Water is a key resource for the sector as non-potable water used for curing and other construction processes, while potable water is used for drinking by construction workers. It is expected that the higher tanker costs could raise overall project execution expenses.
High tanker costs adds up to the list of concerns for the real estate sector, which is already facing multiple challenges. Labour shortages due to election-related migration has already impacted project execution, while higher cement, tile and other input costs have increased construction expenses.
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