Draft policy proposes pricing of water

Proposing that water be treated as an “economic good,” a draft national policy on water has recommended its pricing to promote its efficient use.

The draft water policy, released by the ministry of water resources here on Tuesday, strongly recommended reversal of “heavy” under-pricing of electricity to avoid “wasteful” use of both water and power.

“Over and above the pre-emptive uses for sustaining life and eco-system, water needs to be treated as an economic good and therefore, may be priced to promote efficient use and maximizing value from water,” it said.

The draft policy further suggested setting up a mechanism in every state to establish a water tariff system. The proposed mechanism should fix the criteria for water charges, preferably on volumetric basis, at sub-basin, river basin and state level after ascertaining the views of the beneficiary public, the draft suggested.

Recycling and reuse of water, after treatment meeting specified standards, should be encouraged through a properly planned tariff system in which there is a cost for the quantity withdrawn, a refund for properly treated water returned for reuse, and heavy fines for returning polluted waters, the policy proposed.

The draft policy has also recommended setting up of a Water Regulatory Authority in each state to fix and regulate the water tariff system and charges, in general. “While the practice of administered prices may have to be continued, economic principles need to increasingly guide the administered prices,” it suggested.

Recognizing the right of the states to frame suitable policies, laws and regulations on water, the draft policy has laid emphasis on the need for a “national water framework law.” It has favoured enactment of a “comprehensive” law for optimum development of inter-state rivers and river valleys, public trust doctrine, amendment of the Indian Easements Act, 1882.

“The identification, resettlement and rehabilitation of project affected families shall be given due consideration right at the beginning of the project formulation,“ the policy said recommending that affected families partners in the project in progress and be given shares in the benefit.

“A permanent water disputes tribunal at the Centre should be established to resolve the disputes expeditiously in an equitable manner,” the policy proposed.

The draft policy will remain open for public comments till February 29. “After carrying necessary modifications, it would be placed before National Water Board and National Water Resources Council for finalization and adoption,” a ministry official said.