LAHORE, April 1: Punjab Governor Khalid Maqbool on Monday rejected the proposal for an increase in water rates by the Water and Sanitation Agency.

The proposal was given by Wasa officials to offset their Rs300 million deficit mainly due to phenomenal increase in power bills following a change in tariff by Wapda. The governor rejected the proposal outright and directed that a subsidy of Rs265 million be arranged for covering the deficit.

He said the city district government should start work on 610 water supply and drainage schemes to be funded by the Rs358 million special grant provided by President Pervez Musharraf.

He was informed that 23 new tubewells were proposed to be installed in the provincial metropolis for improving the water supply position whereas 270 schemes for improving water supply and 317 sewerage and drainage schemes were in the pipeline.

He was informed that Wasa planned to spend Rs28.6 billion on water supply schemes during the next 10 years under a long-term plan and Rs1.03 billion under a short-term plan under which 896 water supply and drainage schemes would be completed.