Tag Archives | Urban water supply

In Mint: Let India’s urban poor pay for good water

I write in Mint this week on how thinking along the lines of micro finance principles can change how we approach water pricing. Instead of an ideological stand on keeping water free, it’s better to ask how we can make clean water cheaper and more affordable for urban India’s most deprived.

In microfinance, people also acknowledge that it costs more to lend to the poor. When most people have to take a big loan from a bank, they have a steady income to show. They have a credit history. They also have assets they can pledge as surety, in case they default on the loan. The poorest of the poor don’t have salaries to showcase. They don’t have assets to pledge. The risk of defaulting on a loan is higher, and it is humane that they be allowed to default when the circumstances are dire. By allowing microfinance institutions to charge higher interest rates, the policies allow them to service these needs.

Similarly, the costs of supplying water for a city’s poor can be high. People often don’t have address proofs or any proofs of legal residence, making installing water connections harder. Getting even basic piping to reach the heart of a slum is not always cheap, given that there is hardly any road space to dig up. Maintaining pipes is even tougher. Installing and maintaining water meters is difficult, thereby making bill collection costlier.

It is highly disingenuous to ignore all these real issues and shout for a right to free water.The better approach is to ask, “how can we make water cheaper for the poorest?” And that line of thinking can birth an entirely new range of solutions.

Read the full article at Live Mint, February 13, 2015.

Live Mint e-Paper - Mint - 14 Feb 2015 - Page #11 Pavan Srinath


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A Long Overdue Hike in Bangalore’s Water Prices

The Bangalore Water Supply and Sewerage Board (BWSSB) recently hiked its water tariff, a move that was long overdue.  I am quoted in Citizen Matters on why this hike is a good move.

The hike in BWSSB’s water tariff is a welcome development that was long overdue. BWSBB has been a national leader in the professional delivery of water supply and sewerage services, and it is no accident that Bangalore has the largest number of metered water connections in the country.

Water is an increasingly scarce resource in the 21st century, and pricing it at its highest marginal cost is essential to conserving this vanishing resource. While we talk about excessive or misdirected LPG and petrol subsidies, the water subsidy that even the most prosperous Bangalore receives is much higher.

The higher price of water will also spur more people to do rainwater harvesting and efficient use of water. We must also recognise that people pay many times more for water tankers – a small increase in BWSSB tariffs could in fact reduce overall water cost for the city’s residents.
[Citizen Matters: Should Bengalureans be grateful for BWSSB’s water rates? 11 November 2014]

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Urban water supply without groundwater?

Earlier in January, Rohini Nilekani (Chairperson, Arghyam) was invited by the Finance Minister to a pre-budget consultation along with other social sector representatives. From Arghyam, we made a recommendation to the minister to Launch a Research Initiative to Mainstream Groundwater into Urban Water Supply:

Universal provision of clean water to all of India’s cities and towns is not feasible without adequate policy attention directed towards the sources of water. Groundwater has been and will remain an essential source of urban water supply, especially in smaller cities and towns. Surface water is an increasingly scarce and expensive resource and cannot be solely relied upon to service urban India and can exacerbate rural problems if promoted unchecked.

In the long run, it is paramount that groundwater be mainstreamed into urban water supply planning and policies. Today, however, there is insufficient knowledge to effectively tackle the twin problems of overexploitation and contamination that plague urban groundwater. There is insufficient data and research to formulate sound policies
that can incorporate groundwater sustainably and safely into drinking water supplies in cities.

It is proposed that in the Union Budget of 2013-14, the Government of India launch an Urban Groundwater Research Initiative with an allocation of Rs. 50 crores spent over three years, with a mandate of knowledge creation in the sector. Existing groundwater usage, its potential in augmenting other sources, the role of urban water bodies in groundwater recharge, and the nexus between sanitation and groundwater all need to be understood much better than they are today. A commitment to high quality research through partnerships with premier research institutions and competitive grants are necessary for robust policy formulation on urban groundwater. This will be a small investment that adds to the water security of India’s towns and cities.

You can read the full pre-budget note here [PDF]. You can also read about the same on India Water Portal and see Rohini Nilekani talk about it on Mint.

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