3 min readNew DelhiMay 22, 2026 05:12 PM IST
In a major relief for residents, the Delhi government on Friday announced that the Infrastructure Charges Fund (IFC) for water and sewer connections will now be levied on the basis of actual water demand. The move aims to reduce costs for property owners and make the system fairer and more practical.
Addressing a press conference along with Water Minister Parvesh Sahib Singh, Chief Minister Rekha Gupta said IFC will be charged only on new developments or additional construction within a property.
Redevelopment projects where the water demand remains unchanged will be exempted. Open spaces, uncovered areas, and non-FAR areas will not be counted while calculating water demand and IFC charges.
The government has also introduced rebates for residents in different colony categories:
- Properties situated in E and F category colonies will receive a 50 per cent rebate on applicable IFC
- Those in the G and H category colonies will be eligible for a 70 per cent rebate, Singh said.
The minister further clarified: “IFC will apply only to properties or units built on plots larger than 200 square metres. Plot size will be verified using ownership documents such as conveyance deeds, sale deeds, registered GPA documents, and agreements to sell. In unauthorised colonies, building plans approved by a registered architect will be accepted.”
To benefit smaller residential units, the government has announced an additional 50 per cent rebate on net IFC for dwelling units measuring 50 square metres or less, provided they are constructed on plots larger than 200 square metres.
Other exemptions
“Relief has also been extended to charitable and religious institutions. Institutions registered under Section 12AB of the Income Tax Act and places of worship will receive an additional 50 per cent rebate on net IFC payable for water and sewerage services,” Singh said.
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The government has also incentivised sustainable wastewater management practices by offering a 50 per cent rebate on sewer IFC to institutional and commercial properties equipped with Zero Sewerage Discharge Infrastructure.
However, the sewage treatment plants must comply with CPCB and DPCC norms. Officials added that in cases where the sewage treatment plant is found non-functional, a penalty of 0.05 per cent per day will be imposed on the rebate amount granted under the provision.
