India Infrastructure Report 2011

Water: Policy and Performance for Sustainable Development.

2012 E11 Karthik Madhavan MBA, Batch of 2012-2014Symbiosis Centre for Management & Human Resource Development

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To present the existing water policies and its issues and how we can improve the same for a sustainable development.

Overview Macro Irrigation Rainwater Harvesting Transforming Water

Utilities PPP

Water in Cities Reforms Industrial Water

Demand Pollution Recycling and Reuse Sector Reforms

Objective

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Water Consume

rs

Agriculture 85%

Industry 9%

Domestic 6%

Practical Options:• Water use efficiency• Changes in cropping patterns• Better irrigation techniques• Water-saving innovations

(SRI) • Improving the productivity of

‘rain-fed’ agriculture

Strategic vision :• Water Resource Planning and

Development• Empowerment of Local

Institutions and Citizens• A Sound Legal Framework• Better management of Water

Resources

Overview

Some facts:• Consumers• Total utilizable water -

1,122 bcm.• National Water Policy 1987,

2002.• River Basins..• Water Gap in India by

2030.

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Sources of Water• River Basins, Dams.• Rainfall – [ Rajasthan 100mm, Cherrapunji –

11000mm]Challenges• Floods and Droughts• Water Quality• Boundary Issues• Groundwater Development

Macroeconomics

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Irrigation

Water logging and salinity

Displacement, rehabilitation

Inter- sectorial competition

Ground water depletion Under utilization of

ground water resources

Increasing effective irrigation area

Per capita dam storage needs to be enhanced

Inter-basin transfer of surplus water

PPP for distribution

Issues Strategies

Groundwater

Canal

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Importance :- Recharges groundwater table. Increases the supply of water Positive impact on the cropping patterns Hours of irrigation from the wells increased

by 32% Rise in water table depth by 6-7m. Increases net revenues Useful in semi-arid and dry sub-humid

regions

Rainwater Harvesting

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Transforming Water Utilities

Operational efficiency:-

• Using improved performance as an instrument to increase user charges

• Focus on performance improvement

• Recruitment

Institutional efficiency

• A mandatory water act

• Amend municipal acts• Corporatization of

service delivery• Appropriate

communication strategies

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Risks:- Capital Risk Revenue Risk O&M Risks Performance Guarantee On the job risks.

Investment by Private Sector require

s :-

• Existing assets.• Land• On time• Right over assets• Freedom to sub-

contract• Latest ULB database

PPP

Why private companies don’t want to participate?

Urban local bodies (ULBs) are responsible for:• Bulk water

abstraction, • Creation of storage and treatment facilities, • D&M of

wastewater.

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How to attract Private Capital in irrigation?• Viability Gap Fund (VGF) • Deferred payment structure • Annuity models• Creation of a Corpus Fund

Key Issues:- Capital Returns Low revenues Land acquisition Rehabilitation Resettlement Trained manpower. Excess water.

Areas of Private Sector Participation: Construction and O&M Remodelling and renovating Development of tourism and

pisciculture. Distribution Technologies and Marketing

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Water in Cities

Shortcomings:

• Unreliable supply.• Chronic under-investment.• Legal and administrative barriers.• High cost of connections.• Inefficiency of existing subsidies.

Strategies

• Shorter Management Contracts based on pilot zones.

• JNNURM projects should be extra-traditional.• Better link between city governance, urban

spaces and water services

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Industrial Water Demand

Very high use :- Obsolete process technology Poor recycling and reuse

practices Poor wastewater treatment.

Water availability increased by:- Maximizing retention, eliminating

pollution and minimizing losses. Conservation consciousness

should be promoted through Education, regulation, incentives.

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Pollution

Causes of contamination:

• Discharge of wastewater• No adequate water flow for dilution. • Household borne effluents• No standardization• Agricultural run-offs

Effects of Water Pollution

• Lack of water, sanitation, and hygiene.• India loses 90 million days a year due to water borne

diseases.• Production losses and treatment costs worth Rs. 6 billion

Abatement :-

• Marketable benefits

• Non-marketable benefits

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Recycling and ReuseTypes of Wastewater:• After domestic & public uses• Industrial Waste Water• Saline agricultural drainage

water• Brackish ground water• Sea water in coastal regionsIf we do not recycle and reuse…• Poor Water Availability • Increasing Cost for Water Supply

Poor Economic Performance of ULBs

• Interstate Disputes on Resource Allocation

• Unsustainable Growth

Government should include greywater treatment and reuse as an integral part of water reuse programmes in ministries.

Indirect reus

e

• Recharging aquifers and augmenting surface water reservoirs with reused

water.

Direct

reuse

• (for non-potable purposes) - garden irrigation, toilet flushing, home air

conditioning, car washing, agricultural irrigation.

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Centralization of governance of the water sector

National water policy

Attempt to develop constitutional basis for nationalization of water resources

State level centralization of water governance

Inequitable water distribution

Priority of water allocation

For equitable water distribution

From ‘affordability’ to ‘cost recovery’

Sector Reforms

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1. Better Irrigation2. Rainwater Harvesting3. Implementation of PPP, ease of regulations4. Control Water Pollution!5. Reuse grey water

Thank You!