Most water plant owners know they need a CGWA NOC for their borewell. Fewer know that the NOC also comes with a groundwater charge on every cubic metre drawn, and that packaged drinking water (PDW) units are placed in a separate, higher rate table than other industries.
This guide explains where the charges come from, the rates for each block category, and a simple way to estimate the cost for your plant.
Where the charges come from
The rates are set in the Central Ground Water Authority guidelines notified by the Ministry of Jal Shakti on 24 September 2020 (S.O. 3289(E)). These replaced the December 2018 guidelines. Published summaries of the 29 March 2023 amendment to these guidelines (new exemptions, water audit and bulk supply rules) do not list any change to the charge tables.
The charge depends on two things: the category of the assessment block where your borewell sits (Safe, Semi-critical, Critical or Over-exploited) and how much groundwater you draw per day.
Rates for packaged drinking water units
For Safe, Semi-critical and Critical blocks, PDW units pay abstraction charges (Table 5.2A). In Over-exploited blocks, new PDW units are not given an NOC at all; existing units there pay restoration charges instead (Table 5.2B).
| Groundwater drawn (m³/day) | Safe | Semi-critical | Critical | Over-exploited (existing units only) |
|---|---|---|---|---|
| Up to 50 | Rs 1 | Rs 2 | Rs 4 | Rs 8 |
| 51 to under 200 | Rs 3 | Rs 5 | Rs 10 | Rs 20 |
| 200 to under 1,000 | Rs 5 | Rs 10 | Rs 20 | Rs 40 |
| 1,000 to under 5,000 | Rs 8 | Rs 15 | Rs 40 | Rs 80 |
| 5,000 and above | Rs 10 | Rs 20 | Rs 60 | Rs 120 |
Rates in rupees per cubic metre (1 m³ = 1,000 litres), from CGWA guidelines of 24 September 2020, Tables 5.2A and 5.2B.
For comparison, other industries in a Safe block pay Rs 2 per m³ in the 200 to under 1,000 m³/day slab (Table 5.3A). A PDW unit drawing the same volume pays Rs 5.
A worked example
Take a plant drawing 100 m³ (1 lakh litres) a day. It falls in the "51 to under 200" slab. The arithmetic below assumes 300 working days a year and is only an illustration; the actual amount is worked out by CGWA when it processes your NOC.
- Safe block: 100 × Rs 3 = Rs 300 a day, about Rs 90,000 a year.
- Semi-critical block: 100 × Rs 5 = Rs 500 a day, about Rs 1.5 lakh a year.
- Critical block: 100 × Rs 10 = Rs 1,000 a day, about Rs 3 lakh a year.
- Over-exploited block (existing unit): 100 × Rs 20 = Rs 2,000 a day, about Rs 6 lakh a year.
In a Safe block that works out to 0.3 paise per litre drawn. The bigger cost difference is between block categories, which is why checking the category before buying land matters.
Other conditions that come with the NOC
- Digital flow meter with telemetry on every borewell, installed within 30 days of the NOC and calibrated once a year by an authorised agency. A CGWA presentation to FICCI lists a Rs 2 lakh penalty for a missing or defunct meter.
- Piezometers for withdrawal above 10 m³/day: one manual piezometer for 11-50 m³/day, a digital water level recorder for 51-500 m³/day, and two (one with telemetry) above 500 m³/day.
- Water audit: industries drawing over 100 m³/day need an annual audit by a certified auditor.
- Rooftop rainwater harvesting and recharge is required for all NOC holders. Existing industries with compliant recharge structures may get a 50% rebate.
- Renewal: NOCs are valid for 3 years in Safe, Semi-critical and Critical blocks and 2 years in Over-exploited blocks; apply at least 90 days before expiry. Missing compliance reports can lead to cancellation (see our post on CGWA NOC cancellations).
Some states regulate groundwater through their own authority. Haryana's Water Resources Authority, for example, notified guidelines on 10 September 2021 that carry the same PDW rate tables. Check which authority covers your block before applying.
What this means for water plant owners
- Find your block category first. It decides whether a new plant is possible at all and what you pay per cubic metre.
- Apply for the volume you actually need. A higher daily quantum can push you into a higher slab.
- Budget for the meter, telemetry, piezometer and recharge structure along with the charge itself.
- Keep meter readings and reports up to date; they are the evidence CGWA relies on at renewal.
- Groundwater is only one approval. You also need the FSSAI licence, pollution control consent and the rest of the PDW plant checklist.
How ClearPath Compliance India can help
We check the CGWA category of your block, help you size the groundwater requirement, prepare and file the NOC application, and track meter, piezometer, audit and renewal deadlines for running plants. We handle FSSAI, pollution control, factory licence and fire NOC work for water plants from our office in Kota, Rajasthan.
General information only, not legal advice. Rates and rules are as published in the CGWA guidelines of 24 September 2020 and the other sources dated above; check the current notification and your NOC before acting. Brand names, if any, are trademarks of their owners and used for identification only. This post is not sponsored or endorsed by any brand.
Sources: CGWA Guidelines to regulate and control ground water extraction in India, S.O. 3289(E), Gazette of India, 24 September 2020, Tables 5.2A, 5.2B and 5.3A and Sections 4, 5, 7, 9, 11 and 14; CGWA amendment of 29 March 2023 (summary by TeamLease RegTech); Haryana Water Resources Authority notification HWRA/485/Notification/2021, 10 September 2021, Appendix 5.0; CGWA/FICCI presentation "Salient features and water audit".