CII wants privatisation of urban water supply

In its recommendation on National Water Policy, the CII National Committee on Water has stressed the need of awarding management contracts “with the objective of improving access and facilitating efficiency gains”. 

The recommendations were released during the three-day ‘International Conference on Water’ which began on Friday. The theme of the conference is ‘Transforming Municipal and Industrial Water Landscape’.  Experts, industrialists and bureaucrats from India and abroad are participating in it.

The CII’s recommendations have asked for concessions to private operators on the basis of efficiency, not on the basis of investment. “This is relevant in the Indian context given the low levels of tariff and the steep level of increase in tariffs that accompany an investment led concessions,” the CII said.

The trade body said that the operations and maintenance costs should be recovered in full. For that, the CII suggests incorporation of user charges fixation and revision of principles in Municipal and state level laws.  Setting up of zonal level Water resources and Management  Institutes on the lines of IISc or IITs, creation of licensed training programs  and  state funding to the tune of 100 crores for training government employees are some of the other recommendations the CII has made.

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