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Resource centre on India's rural distress
 
 

Water a more serious issue than energy crisis: Montek

The country’s attention may be focused on an ever-increasing energy needs, but water is a much bigger issue, says a key policymaker in the government. “Water crisis is a more serious issue than energy crisis,” said Montek Singh Ahluwalia , deputy chairman of Planning commission, at the World Economic Forum on Sunday.

Speaking at a session on ‘How will India avert a Water Crisis?’ Mr Ahluwalia said that that the government was seized of the problem and was in the process of reviewing its water policy. He added that some of its key elements could be incorporated in the 12th Five Year Plan (2012-17).

The annual extraction of groundwater in India is by far the highest in the world and the unsustainable over-extraction has lowered the water table to dangerous levels, mid-term appraisal of the Eleventh five year plan had said.

Multilateral agencies such as the World Bank have flagged the concern much before Indian authorities have woken up to the problem.

“Unless water management practices are changed – and changed soon – India will face a severe water crisis within the next two decades and will have neither the cash to build new infrastructure nor the water needed by its growing economy and rising population,” a 2005 World Bank report had said.

The government has already appointed a Group of Ministers headed by minister of agriculture Sharad Pawar to formulate a new water policy, but it remains to be seen if the key issue of pricing water is addressed.

The policy is likely to be ready in the next few months.

“This is my personal view that we should not subsidise water for agricultural usage. We should charge a price for water and increase the rate for procurement and we request state governments to take steps in this direction," Mr Ahluwalia said.

The per capita water availability has reduced over time. In 1951, the per capita water availability was 5,177 cubic meter which reduced to 2209 cubic meter in 1991 and 1820 cubic meter in 2001.

Dr Ahluwalia further suggested that cities should set up water regulators. “The rich parts could pay more for water consumption, which will cover the cost for the poor. It’s like cross subsidy."

Head honchos of Indian companies that participated in the discussion, too, stressed on the private sector’s participation to converse and recycle water, but also said the government has to be the key enabler in the process.

Those representing the private sector in the session were HCC chairman Ajit Gulabchand, PepsiCo chief (ME & Africa) Sanjeev Chadha and Harish Manwani, President Asia, Africa, Central and Eastern Europe.

"We have to understand the economics of water," said Mr Chadha. The private sector is a key player in averting water crisis but the government is the captain of the team. It should make investments in initiatives associated with water, he added.

Mr Manwani pointed that while there are both supply and demand side constraints that need to be addressed and that innovations on the supply side and change in consumer behaviour could help managing crisis.

ADB president for infrastructure and water Arjun Thapan pointed that the country’s water crisis could impact economic and social growth, if not addressed.

"We should learn from other cities and close in the gap in demand and supply. Waste water is one area where lot can be done. Water crisis in future could also impact investments in the country," he added.

Mr Gulabchand said the public should be made more aware of the amount of water they are using, which will help them understand the importance of water.