LAHORE - Water and Sanitation Agency (WASA) has said that Bottled Water Companies (BWCs) are extracting 90 million litres of water a day and now Agency is charging companies at the rate of Re 1 per litre for using the groundwater.

It was revealed in a reply submitted by Wasa before the Supreme Court hearing a suo moto case on Monday.

Chief Justice of Pakistan Mian Saqib Nisar was hearing the case against ‘selling of water extracted from the ground without any charge and its fitness for human consumption at the Lahore Registry.

The Court ordered owners of 11 mineral water companies to appear before it on Tuesday (today) at Supreme Court Lahore Branch Registry. 

The CJ also warned owners of mineral water companies that their names will be put on the Exit Control List if they did not show up before the court.

While a two-member Commission also submitted its report before the court that informed BWCs are working without proper method to assess the quality of water and have not latest tech laboratories to gauge the quality of the water.

According to Farzana Altaf, member of the commission that BWCs are unaware of what minerals are present in water and in what quantity.

Previously Wasa Lahore was charging Rs 100,000 per cfs per month (0.22 paisa per liter) but as per the Supreme Court order, Wasa has changed the rate of levy tax in consultation with all concerned departments. 

The report was jointly compiled by WASA and Groundwater Management Cell of Irrigation Research Institute.

WASA has suggested that potable water and beverages companies will now pay water conservancy charges on extracted groundwater throughout Punjab. Proposed rate per cusec per month is Rs 42 million per cusec for 16 hours per day and 26 days per month.

Pakistan is 4th largest user of groundwater after India, US and China. Pakistan’s 40 per cent irrigated food production is depended on groundwater but climatic changes put pressure on groundwater resultantly water levels are dropping drastically taking this resource beyond the bound of its users.

The situation necessitated to levy water conversation charges.

In a number of countries of the world, water charges are levied as a measure to conserve water for future generations.

It is pertinent to mention that in compliance with the SC order on October 30, 2018, a meeting was held among all the concerned stakeholders from different provinces to determine and finalise an interim rate for the levy and collection of water extraction charges from bottling companies.

All participants unanimously agreed to impose an interim “water extraction charge” of Rs 1 per litre on all Bottling Water Companies.

Meeting was presided by AG Punjab and all concerned officers.

According to minutes of the meeting, all participants unanimously agreed to impose water extraction charges tax/cuss over the bottled water companies at Rs 1 per liter.All the officers also agreed to further legislate over the subject matter in their respective provinces”.

It was decided in the meeting that till further legislation, Rs 1 per liter tax shall be imposed over the Bottled Water Companies and all concerned entities in each province shall immediately legislate over the subject matter by making necessary amendments to their respective laws, rules and regulations.

“Till such time that the same is done, the rate agreed (Rs 1 per liter) agreed under the foregoing meeting shall remain in full force and effect as an interim measure according to prevalent legal framework,” according to meeting minutes available with The Nation.

Secretary Irrigation of four provinces, Secretary Local Government of Punjab and Sindh, DG Sindh Food Authority, MD Wasa Lahore and others. Attended the meeting.

No comprehensive governance regime has been developed to control the over-exploitation and ensure sustainability to use the water resources except a few laws including,

The Punjab Local Government Act 2013, The Lahore Development Authority (LDA) Act 1975 (Amended), The Punjab Development of Cities Act 1976, The Canal and Drainage Act 1873 (Amended in 2006) and Rules of Business 2011 of Housing Department and Irrigation Department.

According to reply by Wasa, list of companies of BWCs includes one water plant of Nestle located in Sheikhupura, two water plants of Sufi are in Kamoky and at Lahore-Sheikhupura Road, one plant of Gourmet in Sundar Industrial Estate, one plant of Doce in Quaid-e-Azam Industrial Estate Kot Lakhpat Lahore. There are four water plants of Dasani in Faisalabad, Gujranwala, Multan and Lahore. While four water plants of Aquafina are located in Faisalabad, Gujranwala, Multan and Lahore. There are 27 beverages industries in Punjab which will now pay Rs 1 per litre water tax to WASA, including 10 in Lahore, four in Faisalabad, two in Rahim Yar Khan, one each in Sheikhupura, Khanewal, Gujranwala, Multan, Sargodha and Gujrat.

WASA Managing Director Syed Zahid Aziz told The Nation that provision of clean water to citizens is the foremost priority of the Agency and following the Supreme Court order, water agency has now taken steps to streamline the Bottled Water Companies.