Mauritius Water Tank Grant Scheme Hits Snag as Suppliers Demand Rs 15,000 Review
Four water tank suppliers want the government to raise the Rs 15,000 grant, saying the fixed price no longer covers their costs.
A government scheme designed to help Mauritian households access affordable water storage is facing a serious dispute, after four suppliers demanded a revision of the Rs 15,000 grant that underpins the programme.
The Water Tank and Domestic Water Tank Grant Scheme allows eligible residents to receive a government-backed subsidy of Rs 15,000 to purchase water tanks and related equipment. The grant is administered through the Development Bank of Mauritius (DBM), a state-owned financial institution that issues coupons which customers bring to approved suppliers.
The dispute came to light on 10 November when Energy and Public Utilities Minister Patrick Assirvaden addressed Parliament on the matter. He revealed that four approved suppliers have formally requested an increase to the grant amount, arguing the current figure no longer reflects their actual production costs.
To make their point, three of those suppliers went further, announcing on social media that they would stop accepting new DBM coupons, citing limited production capacity. The move effectively froze access to the scheme for new applicants whose chosen suppliers had withdrawn.
Minister Assirvaden responded by reactivating the ministry's technical committee to review the suppliers' request. However, he was firm that the existing contractual obligations remain binding. Under the agreements signed with the ministry, the Rs 15,000 grant covers two water tanks worth a combined Rs 10,000, with at least one tank having a capacity of 1,000 litres, a pump valued at Rs 4,000, and accessories worth Rs 1,000.
The minister also confirmed that he has referred the matter to the Competition Commission of Mauritius, the independent body responsible for investigating anti-competitive behaviour. The referral focuses on whether the coordinated suspension of coupon acceptance by multiple suppliers amounts to collusion or a form of price-fixing pressure on the government.
What this means: For thousands of Mauritian households that rely on the scheme to manage water shortages and storage needs, particularly those in areas with irregular supply, the standoff creates uncertainty about access to subsidised tanks. If suppliers hold firm and the government does not revise the grant upward, new applicants could find themselves without participating vendors. At the same time, the Competition Commission investigation signals that the government is not prepared to accept coordinated supplier pressure without scrutiny. The outcome of the technical committee review is likely to determine whether the scheme continues smoothly or faces a broader restructuring.
Source: ION News
Frequently Asked Questions
What does the Mauritius Water Tank Grant Scheme provide?β
The scheme provides eligible households with a Rs 15,000 government subsidy covering two water tanks worth Rs 10,000 combined (at least one of 1,000 litres capacity), a pump worth Rs 4,000, and accessories worth Rs 1,000. Grants are issued as coupons through the Development Bank of Mauritius (DBM) and redeemed with approved suppliers.
Why have some water tank suppliers stopped accepting DBM coupons in Mauritius?β
Four approved suppliers say the Rs 15,000 grant no longer covers their production costs and have demanded a revision of the scheme. Three of them announced on social media that they would no longer accept new DBM coupons, citing limited production capacity, though the minister has referred this coordinated action to the Competition Commission of Mauritius for investigation.
What is the Competition Commission of Mauritius and what role does it play here?β
The Competition Commission of Mauritius is an independent regulatory body that investigates anti-competitive practices such as price-fixing or collusion among businesses. Minister Assirvaden has asked it to examine whether the suppliers' coordinated decision to suspend coupon acceptance constitutes an unlawful agreement to pressure the government into raising the grant amount.
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