Delhi's Water Minister Parvesh Verma has attributed the sharp increase in water bills of residents in the national capital to a 5% compound interest applied per billing cycle, whether monthly or bi-monthly.

“People received bills in lakhs because the Delhi Jal Board levied an interest rate of 5% per billing cycle, with some cycles being monthly or every two months,” ANI quoted Verma, addressing the media on Friday.

According to him, for a monthly cycle with a 5% compounded interest rate, a ₹ 100 bill would become ₹ 178 over one year. When the interest rate was lowered from 5% to 2%, the monthly cycle now results in people paying ₹ 130 for a ₹ 100 bill after compounding interest.

Similarly, for a two-month cycle, where people used to pay ₹ 134 for a ₹ 100 bill, they will

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