After six years, the Municipal Corporation of Greater Mumbai (MCGM), is likely to hike water charges as the cost of water production has escalated, a top civic official said.

Owing to increase in the cost of water production, MCGM, which is in financial difficulties, has prepared a draft for various consumers with a proposed hike in water charges, he said.

The Hydraulic Department proposes to increase water rates by 25-35 percent for residential and slum users and a hike of 20-38 percent for industrial and commercial users.

"With increase in production cost of water it seems that a revision must be made in the existing rates. There has been a rise in purification and transmission cost, labour, add electricity cost among others," the official said.

Currently the water connections in slum areas, residents of chawls, Dharavi redevelopment affected persons, MHADA LIG colonies are charged Rs 2.