Water subsidy for poor to continue

Under attack from the public on privatisation of water delivery services and indiscriminate pricing of water, the Centre has modified its draft National Water Policy-2012 to ensure that the poor continue to get water at subsidised rate.

“For the high priority uses of water for sustaining life and ecosystem for ensuring food security and supporting livelihood for the poor, the principle of differential pricing may have to be retained. Over and above these uses, water should increasingly be subjected to allocation and pricing on economic principles,”the revised draft said.

This means the poor will not pay more as they will get subsided water while others will buy water based on economic principles. The national water policy is applicable for all kind of users including drinking, agriculture and industrial users.

The draft also proposes setting up of Water Regulatory Authority (WRA) in each State to fix and regulate the tariff. “Tariff can be periodically reviewed,” it said.

The charges will be determined on volumetric basis with ‘Water Users Associations’ given the responsibility to manage the distribution of water. The associations will be given ample power including collection and retaining a portion of water charges and also maintaining the distribution system within their jurisdiction. They might be given the freedom to fix rates subject to floor rates determined by WRAs.

 A copy of the draft, which is available with Deccan Herald, states that in order to meet equity, efficiency and economic principles, water charges should preferably be determined on volumetric basis.

“Recycle and reuse of water, after treatment to specified standards, should also be incentivised through a properly planned tariff system.”

The draft was prepared after taking views from state governments and other stakeholders. The Union Ministry of Water Resources had come under attack from various corners over  its move towards allowing greater participation of private entities in water management.

The revised draft will be placed before the National Water Resources Council which is chaired by Prime Minister Manmohan Singh with chief ministers as members.

The draft also puts emphasis on removal of supply of highly subsidised electricity to prevent wasteful use of both electricity and groundwater. Instead the draft favours setting up of separate, dedicated electric feeder systems that are energised “for a limited time” for agriculture.