The Bangalore Water Supply and Sewerage Board (BWSSB) has launched a significant One-Time Settlement (OTS) scheme to assist Bengaluru residents in clearing long-pending water bill arrears.
Approved by the state cabinet, this initiative offers a total waiver on interest and penalties for consumers who pay their principal outstanding amount.
Running from January to March 2026, the scheme aims to recover over ₹700 crore in dues. This move provides a rare financial window for lakhs of domestic and commercial users to regularise their accounts without the burden of accumulated late fees.
Revenue Recovery
Bengaluru has faced a growing crisis of unpaid utility bills, with total arrears reaching approximately ₹701 crore. Of this, nearly ₹262 crore consists solely of interest and penalties that have built up over years.
By adopting this OTS model, the BWSSB hopes to incentivise thousands of defaulters who were previously deterred by high interest rates.
The state government has temporarily relaxed the Bangalore Water Supply Regulations of 1965 to facilitate this process, ensuring the board can stabilise its finances to maintain the city’s critical water infrastructure.
Automated Systems
BWSSB Chairman Ram Prasath Manohar has emphasised that the settlement process will be entirely transparent and digital. To prevent corruption or the interference of middlemen, the waiver will be applied automatically through backend software updates.
Consumers can settle their dues via the official BWSSB website or a new mobile application. Furthermore, the cabinet has instructed government departments with outstanding bills to settle their accounts through book adjustments. This ensures that the public sector leads by example in this massive city-wide drive to clear financial backlogs.
Sustainable Urban Infrastructure
The recovery of these funds is vital for the BWSSB, which faces massive operational expenses, including a monthly electricity bill of ₹60 crore for pumping water from the Cauvery River. Officials have clarified that while the interest is waived, the principal amount must be paid in full to qualify for the benefit.
Special teams will also be deployed to coordinate with large-scale commercial defaulters. This comprehensive approach aims to modernise Bengaluru’s revenue collection while offering a compassionate solution to residents struggling with debt in an increasingly expensive urban landscape.
The Logical Indian’s Perspective
At The Logical Indian, we view this initiative as a constructive step toward fostering a more responsible and transparent civic culture. By waiving interest, the government is extending a hand of empathy to citizens, acknowledging the financial hardships many face.
However, the success of our public utilities depends on the collective honesty and participation of every resident. This scheme is a unique opportunity to reset our relationship with essential services. We believe that a well-funded water board is crucial for a healthy, growing Bengaluru, and clearing these dues is a direct investment in the city’s future.
