Dhaka Water Supply and Sewerage Authority is going to raise water tariff by 20 percent from July 1 if the government approves its proposal.

Wasa have proposed to hike the price of water to reduce their subsidy in water supply.

"We have proposed 20 percent increase in the water price. Now, the government will take a decision on it," Director of Wasa, Taqsem A Khan, said today at a press conference at Wasa's conference room.

According to the Dhaka Wasa Act, its board can increase 5 percent price every year. As Wasa thinks that it is not sufficient, it sent the proposal to the LGRD ministry for consideration.

Currently, Wasa spends Tk 25 to generate one unit ( 1,000 litres) of water but they sell it at Tk 15, Taqsem claimed.

He said a government organisation cannot operate through begging -- there is a huge gap between water price and its production cost.

Taqsem said the government has to give a subsidy of Tk 10 against per litre of water.

According to the proposal placed before a meeting of Dhaka Wasa Board on February 7, the price of each unit (1000 litres) of water will be Tk 21 for residential use and Tk 55 for commercial use whereas the amount is Tk 15.18 for residential use and Tk 42 for commercial use at present.

Taqsem said they have been running many projects with foreign loans and they have to pay substantial amounts to pay the installments of the loans.

There is an instruction from the high-ups of the government to reduce the subsidy on water gradually and they are trying to keep water prices at tolerable levels, he added.