CM Rekha Gupta Announces Major Relief in Water and Sewer Infrastructure Charges

Delhi government shifts to water demand-based infrastructure charges instead of area-based calculations

Several colonies to get up to 70% concession as water and sewer IFC rules are simplified

Measurement-based assessments and arbitrary recoveries to end, water and sewer IFC policy to become transparent and citizen-friendly: CM Rekha Gupta

Previous IFC policy had become a tool of harassment; we have made it people-centric: Water Minister Parvesh Sahib Singh

New Delhi, May 2026 : Delhi Chief Minister Smt. Rekha Gupta on Friday announced a major relief measure for residents, housing units, institutions and industries by rationalising water and sewer Infrastructure Charges (IFC). The decision aims to reduce the unnecessary financial burden on citizens, enhance transparency and encourage development. She said that water and sewer infrastructure charges will now be determined on the basis of actual water demand rather than the total area of a building.

Addressing a press conference at the Delhi Secretariat, the Chief Minister said that IFC will apply only to new construction projects or additional construction carried out on an existing property. Redevelopment projects where water demand does not increase will not attract IFC. In addition, non-FAR areas as well as open and uncovered spaces will not be included in water demand calculations or in the assessment of IFC. She said the Delhi government’s objective is to provide relief to citizens, strengthen basic infrastructure and establish Delhi as a model in the fields of water management, sewage treatment and environmental protection.

CM Rekha Gupta said the government has decided to provide special relief to different categories of colonies and economically affected sections. Properties located in E and F category colonies will receive a 50 percent concession in IFC, while those in G and H category colonies will be eligible for concessions of up to 70 percent. She further announced that residential units measuring 50 square metres or less, built on plots larger than 200 square metres, will receive an additional 50 percent concession, providing direct relief to small families and the middle class. Religious institutions and charitable organisations registered under Section 12AB will also be entitled to an additional 50 percent concession on water and sewer IFC charges.

To promote environmental protection, institutions and commercial establishments adopting a Zero Liquid Discharge (ZLD) system will receive up to a 50 percent concession in sewer IFC. The Chief Minister clarified that this benefit will be available only to institutions and commercial establishments where ZLD-based Sewage Treatment Plants (STPs) have been installed and are fully operational in accordance with the standards prescribed by the Central Pollution Control Board (CPCB) and the Delhi Pollution Control Committee (DPCC). She warned that if inspections find an STP to be non-functional or not operating as required, the concession will be withdrawn. In such cases, a penalty at the rate of 0.05 percent per day will also be imposed on the concession amount granted earlier.

The Chief Minister said infrastructure charges had, for a long time, imposed an additional financial burden on citizens. Families building new homes or carrying out additional construction often had to pay charges running into several lakh rupees, causing significant hardship. Keeping this in view, the Delhi government reviewed the entire system and decided to make it simpler, more transparent and more beneficial for the public. She said that once implemented, the revised policy would make it easier to build homes and undertake development projects in Delhi while providing citizens with direct financial relief worth several lakh rupees. The government, she added, seeks to encourage development rather than impose additional financial burdens on residents.

On the occasion, Delhi Water Minister Shri Parvesh Sahib Singh said that for years the previous Aam Aadmi Party government had turned the IFC system into an instrument of harassment rather than a means of relief for Delhi residents. Charges that were once reasonable and practical were shifted from a usage-based model to a complex area-based calculation system, resulting in fee increases of six to seven times. Ordinary families attempting to build homes were often handed demands of ₹15-20 lakh or even more. Citizens found themselves trapped in complicated rules relating to built-up area, FAR, balconies, staircases and various other parameters. This, he said, led to corruption, harassment and countless visits to government offices. Instead of helping citizens, the entire system had been structured in a way that pushed them into unnecessary difficulties.

The Water Minister said the present government has now completely overhauled the system and made the IFC process simple, transparent and fair. Plots measuring up to 200 square metres will continue to remain exempt from charges, and there will be no scope for unnecessary measurements or harassment by officials. Whatever is recorded in the official documents will be accepted as final. He added that in many cases where people were previously compelled to pay as much as ₹15-16 lakh under the old system, the amount has now been reduced to around ₹2-3 lakh. Calling it a major relief for Delhi’s middle class, homeowners and ordinary families, Singh said the government’s commitment is clear, honest governance, less corruption, fewer complexities and maximum relief for the people of Delhi.