Karnataka rolls out groundwater pricing policy to combat over-extraction

In a landmark move to address unsustainable groundwater extraction, the Karnataka government has rolled out a comprehensive pricing system for groundwater usage across various sectors. The policy introduces a usage-based fee ranging from Re 1 to Rs 35 per cubic metre, depending on the purpose, quantity, and groundwater status of the location.

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The revised policy mandates that individuals, housing societies, industries, and commercial and mining establishments must now obtain a no-objection certificate (NOC) before drilling borewells. Notably, digital flow meters are compulsory for all users, and apartment complexes are required to install telemetry systems to monitor extraction.

Residential properties drawing less than 25 cubic metres of water daily are exempt from charges. Consumers drawing between 25 and 200 cubic metres of groundwater per day will be charged ₹1 for every cubic metre, whereas those exceeding 200 cubic metres daily will incur a rate of ₹2 per cubic metre.

Industries and mining operators will face a tiered pricing model based on the groundwater condition in their respective taluks. In “safe” zones, industries will pay between Rs 1-5 per cubic metre, which increases to Rs 6-20 in “over-exploited” zones. Mining operators, however, will be charged slightly less, with rates ranging from Rs 1-7 per cubic metre depending on the zone’s status.

Water tanker operators and bulk water suppliers, who were earlier outside the purview of groundwater regulations, are now included under the NOC framework. They must follow extraction limits varying from 50 to 150 cubic metres per day, based on groundwater availability in their operational zones.

Existing projects that comply with the NOC and have recharge infrastructure in place will benefit from a 50% rebate on charges.

To ensure accountability, the government has introduced stringent penalties ranging from Rs 5,000 to Rs 2 lakh for non-compliance, scaled according to daily water use.

Revenue generated from these charges will be reinvested into groundwater conservation and recharge initiatives, aligning with the state's long-term water sustainability goals.