NATIONAL WATER RESOURCES FRAMEWORK STUDY

Summary
Core Team
Senior Policy Adviser & Project Coordinator: Arunabha Ghosh
Senior International Water Resources & Irrigation Specialist: Martin Anthony Burton
Senior National Water Resources & Irrigation Specialist: Rahul Sen
Senior International Water Supply & Regulation Specialist: Simon Gordon-Walker
Senior National Water Supply & Regulation Specialist: Anand K. Jalakam

Copyright © 2012 Council on Energy, Environment and Water

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form
or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission.

A report on a national water resources framework study for the Planning Commission, Government of India.

This document is a summary presentation of a report prepared by the Council on Energy, Environment and Water with a
research team comprising independent experts. The report was commissioned on the request of the Planning Commission
of India to the 2030 Water Resources Group, via the International Finance Corporation.

The views expressed in this summary document or in the report are those of the authors and do not necessarily reflect the
views and policies of the Council on Energy, Environment and Water or of the 2030 Water Resources Group.

The Council on Energy, Environment and Water (CEEW) is an independent, not-for-profit, policy research institution. CEEW
works to promote dialogue and common understanding on energy, environment and water issues in India, its region and
the wider world, through high quality research, partnerships with public and private institutions, and engagement with and
outreach to the wider public. For more information, visit http://www.ceew.in.

Designed by Praveena Sridhar

Thapar House, 124 Janpath, New Delhi 110001, India
http://ceew.in | info@ceew.in | @CEEWIndia
 1.

India’s Usable Supply of Water India’s Usable Supply of Water

Vs.
Projected Demand (2030)

1
 2.
Business-as-Usual Demand Projections

Sectoral shift in water demand (in BCM)

2
 Two premises underlie the need for a sustainable
water future

India’s usable supply of water by 2030 could fall short of

1. projected demand by 50%

2. Sectoral shift in water demand will add to the stress on

available water resources

3
 Overview

Government asked + Team investigated Insights + Recommendations

53 Questions • What works
•Diagnosis •Policy & Regulation
• Experiences
•Data •Management
•Interconnections •Service Delivery
•Complementary
Interventions

National Water Roadmaps for

+
Resources Reforms
Framework
(NWRF) Study

4
 NWRF Study

Planners & can use to manage Water Sustainably &

NWRF Study
Policymakers Resources Equitably

State
National a
International comprehensive
study

across

IRRIGATION URBAN & INDUSTRIAL WRM INSTITUTIONAL

5
 NWRFS Focus Areas

6
 NWRFS Focus Areas Law, Regulation & Management

What should be functions of

regulators?
Water Utility
Sectoral Use & Demand Performance
Effective Public Private
Partnerships

Addressing
intersectoral demand

Improving farmer
participation and
service delivery

Implementing Effective
regulation

Energy - Water Nexus

7
 Case Studies: International
United Kingdom Poland China
Austria Kyrgyzstan

Spain

France

Mexico Germany
Egypt

Italy Turkey

Chile Argentina Australia

USA

8
 Case Studies: India

Uttar Pradesh

West Bengal
Gujarat Orissa

Maharashtra Chattisgarh
Andhra Pradesh
Karnataka
Tamil Nadu
9
 Study Outcomes
1.
3.
Evidentiary 2. Answers
basis for proposing Case Studies relevant to
reforms policymakers

4. 5.
Recommendations Roadmaps for
for 12th FYP long term
reforms

10
 NWRFS Focus Areas

11
 Irrigation

1. Managing ground water for

irrigation

2. Re-engaging with Participatory

Irrigation Management (PIM)

3. Reforming Management in the

Irrigation and Drainage (I&D)
Sector

4. Performance Management in
the I&D Sector
12
 Little irrigation potential remains

Ultimate Irrigation Potential vs. Potential Created vs. Potential Utilised

13
 Significant growth in ground water pumping
1951 – 2009
Agricultural electric pump sets increased from 26,000 to 16.2 million
Agricultural diesel pump sets from 83,000 to 9.2 million

30000
No. of pumps (in Thousands)

25000

9,200
20000
Diesel Pumps
15000
Electric Pumps
4,659 7,237
10000
16,184

5000 83 230
3,101 9,696 8,446
1,546 3,568
26 160
1,618
0
1951 1961 1972 1982 1991 2003 2009
Year

14
 Vicious cycle of energy-ground water management

Power Utilities
• Financial losses due to low
agricultural flat tariff
• Poor voltage and frequency
power supply
• Huge T&D losses due to power
theft & unauthorised pump sets
On farm
• Water overuse to hedge against
poor voltage and infrequent
power supply

15
 Vicious cycle of energy-ground water management

Agricultural Power Consumption Subsidy 10% of Total cost of supply

240 Billion / yr
Rs

25% of India’s fiscal deficit

16
 Managing ground water for irrigation
Technical Options
Gaothan Scheme, MP and Gujarat : 20-40%
Maharashtra power saving

Cases
Jyotirgram Scheme, HVDS conversion in Pilots in AP
Gujarat AP

BEE certified
Agri Feeder Agri Feeder high efficiency

Option
Separation HVDS Conversion pumps

Regulate power Restricts power theft Potentially save 30%

supply to agriculture power

Continuous and quality

Effect
Reduces T&D losses
power supply

17
 Managing ground water for irrigation
Strategy
Comprehensive Agriculture-Demand Side Management • Separation of feeders and
conversion to HVDS

• Rational flat tariff strategy

• Replacement of pumps. Improving

pumping system efficiency &
management

• Participatory Groundwater
Management (PGM)

• Agriculture Extension and

Marketing Services (AES)

• Improving Water Application

Efficiency – micro irrigation &
agronomic practices

18
 Managing ground water for irrigation
Ag-DSM Comprehensive Model - Process

Legend

19
 History: Participatory Irrigation Management in India

20
 Water User Associations
in India

Functions
• Implementing O&M No. of Water User
Associations (WUAs)
• Crop planning, crop water budgeting & per 1000 Ha covered
raising irrigation water demand (March 2010)

• Implementing water distribution

• Support in estimating and collecting water

charges
21
 Re-engaging with PIM
Key Issues
• ID currently focused on construction rather than
MOM (management, operation and maintenance)
• ID staffed with civil engineers rather than water
management engineers
• Lack of understanding/ interest in water users and
irrigated agriculture
• Very poor standard of training and HRD in ID
22
Recommendations
Short term (12th FYP)
• Gain acceptance at all levels in ID/WRD for PIM
• Establish WUA Support Units at field level
• Provide continuous training and support for
WUAs
• Change WUA laws to allow for WUA charter, fee
setting and collection, etc
• Change water tax to a service fee collected by
WUAs
Long Term (10 – 20 Yrs)
• Maintain support to WUAs over 10-15 year
transition period until fully institutionalised
 Andhra Pradesh & PIM
1984
Andhra Pradesh Pipe Committees formed under
AP Irrigation and Command Area Development
Act.
These Committees prove unsustainable once the CAD
programme had withdrawn from the scheme.
1997
AP Government took a policy decision to promote
and support PIM and enacted the AP Farmer‘s
Management of Irrigation Systems (APFMIS) Act.
23
Lessons for WUAs
1. Have proper legal status
2. Have a proper legal entitlement to water
3. Make WUAs accountable (to the ID) for
the water used and area irrigated
4. Invest time and resources in the short
term to build WUA capacity
5. To succeed, water users (through WUAs)
need to be given more responsibility
with associated rights (such as being
able to set, collect and utilise
service fees independent of the
ID)
 AP - Enhancing irrigated agriculture productivity

Increase in productivity - 15 to Total Farmers : 165000

20 % Total Schools : 9070
Cost reduction - Rs.1500/- to
2500/- on inputs - KC Canal /
Krishna Delta

Crop diversification to maize in

Rabi - Higher C/B ratio & duty

Zero tillage in maize - Cost

reduction Rs.2000/- per acre -
Krishna Delta System / SRSP

Rotational irrigation in paddy -

Higher productivity & duty
Farmer Field Schools
24
 Reforming management in I&D

Budget allocation to I&D (%) has decreased overtime

25
 Widening performance gaps in irrigation

26
 Issues Solutions Irrigation
Large • Need better understanding within
Issues
no. of small landholdings ID of on-farm water management On farm
to match supply and demand
Service delivery
Low • Allocate annual and seasonal
crop yields Operation ( Main
volumetric water entitlements
System)
water use productivity
• Form effective WUAs with O&M staff
Maintenance (Main
System)
Inadequate • Allow, plan and manage for conjunctive
water distribution organisation use
Finance
planning for conjunctive use of SW & GW • Increase availability and uptake of HR development
modern technologies and
uptake of modern technologies improvements (drip irrigation, land Education and Training
levelling, SRI, etc.)
Management, Policy &
Processes

27
 Issues Solutions Irrigation
Top-down approach by ID • Create service delivery culture in the ID Issues
• Have service delivery agreements between ID On farm
Lack of service delivery agreements and WUAs
between ID and WUAs Service delivery
• Link service fees paid to service delivered on
individual schemes Operation ( Main
System)
• Partnership of WUAs and ID for enhanced
agricultural production and productivity of Maintenance (Main
water on individual schemes System)

Finance

HR development

Education and Training

Current payment and service delivery arrangements Management, Policy &

Processes
Ideal service delivery relationships

28
 Lost productive potential due to poor O&M Irrigation
Issues
On farm

Service delivery

Operation ( Main
System)

Maintenance (Main
System)

Finance

HR development

Education and Training

Management, Policy &

Processes

29
 Issues Solutions Irrigation
Operation ( Main System) Issues
Inadequate • Look at system for covering costs of recharging GW On farm
• assessment of individual scheme performance. from SW
• use of modern technology for water • Modernise system operation (use RS, GIS, MIS, etc.) Service delivery
management. • Introduce performance management for individual
• discharge measurement in irrigation systems. schemes
Operation ( Main
• on-farm knowledge amongst ID staff of crop and • Introduce water audits, assess costs of poor O&M
• Significantly improve ability to measure, record and
System)
irrigation water management.
• conjunctive use of SW & GW utilise discharge data
• Allow, plan and manage for conjunctive use Maintenance (Main
System)
Maintenance (Main System)
Finance
Lack of
• funds for maintenance • Use (participative) AMP to identify
HR development
• transparency and accountability maintenance, operation and management
costs
Education and Training
No Links • Link maintenance expenditure on a system to
• between maintenance needs and water service fees collected
Management, Policy &
charges • Quantify costs of failing to properly maintain
Processes
• between water charges collected and I&D systems
maintenance work carried out on individual
30 systems
 Need for comprehensive asset management Irrigation
plan Issues
On farm
Asset Surveys Performance Surveys Liaise with Water Users on Level
of Service Provision Service delivery

Operation ( Main
Create Asset Database Identify Current Standards and Specify and agree Standards and System)
Levels of Service Level of Service targets
Maintenance (Main
System)
Formulate Asset Management Assess Water User’s Ability to
Finance
Plan Pay

HR development

Maintain Asset Database Implement Asset Management Education and Training

Plan
Management, Policy &
Processes
Monitor Implementation of Asset Monitor Level of Service
Management Plan Requirement and Provision
31
 Issues Solutions Irrigation
Issues
Fund Allocation • Convert the water tax to a service fee On farm
top-down
inadequate for system MOM • Use AMP to make assessments of MOM costs and Service delivery
fees required at (i) on-farm level, (ii) main system level
Operation ( Main
System)
Out-dated • Reduce water tax/service fee transaction costs by
approach to assessment and collection of water allowing WUAs to collect the fee Maintenance (Main
charges (labour intensive) System)
• Look to increase the contribution of water users to
system MOM by allowing WUAs to set, collect and Finance
utilise service fee, retaining on-farm portion and
No link HR development
passing main system portion to ID
water charge and service provided
Education and Training

Management, Policy &

Processes

32
 Issues Solutions Irrigation
Issues
HR management is relatively Improve HR management by On farm
weak: modernising:
Service delivery
• lack of timely promotion of the more • promotion system to encourage more able staff
capable staff Operation ( Main
System)
• inadequate training in system operation • recruit professionally trained HR personnel
and maintenance Maintenance (Main
• training provided (remote sensing, GIS, MIS, computer System)
scheduling, etc.)
Finance

HR development

Education and Training

Management, Policy &

Processes

33
 Issues Solutions Irrigation
Current implementation of WALMIs poor: Improve the quality of WALMIs: Issues
• greater support from senior ID On farm
• inadequate number of experienced and skilled management (including more funds)
trainers • dramatically change staff appointment Service delivery
system
• inappropriate/non-experienced staff Operation ( Main
• upgrade trainers’ knowledge and skills
transferred to WALMIs System)
• lack of adequate funds • Support ID staff in attending postgraduate
Maintenance (Main
courses
System)
• relatively few trained irrigation/water
management professionals within the ID • Create associated positions to allow staff to Finance
apply new knowledge
HR development

Education and
Training

Management, Policy &

Processes

34
 Issues Solutions Irrigation
• Focused on construction rather than management Change
• Few professionals other than civil engineers • culture of ID from construction to Issues
• Top-down attitude to water users MOM focus On farm
• Lack of focus on overall scheme performance and outputs • charter of ID to allow
• Staff are often transferred after 3 years, insufficient time for employment of a wider range of Service delivery
working knowledge professionals
• attitude of ID personnel from Operation ( Main
seeing farmers as “beneficiaries” System)
Step Changes in Management Effort to seeing them as customers
Develop Maintenance (Main
System)
• an ethos of service delivery
• culture of performance based Finance
management (adopt
benchmarking, as in HR development
Maharashtra)
Encourage Education and Training
• early promotion of younger and
more able staff Management, Policy
& Processes

35
 Complementary interventions
Reengaging with PIM:

• From construction focus to a MOM focus

• Focus on service delivery and performance management
• Change of attitude by ID staff to water users and PIM concept
• Farmer field schools to enhance irrigated agriculture productivity

Reforming I&D and Performance Management in I&D:

• Change of culture within ID and farming community to paying by volume delivered.

• Development of a service delivery and performance management culture with the ID
• Acceptance by state politicians and senior ID managers of the role for
management initiatives to increase agricultural production and water use productivity

36
 Water Resources Management (WRM)

1. Managing Ground Water for

Multiple Uses

2. Water Resources Management

3. Role of the Water Regulator in

WRM

4. Perspectives on Legal
Frameworks for WRM
37
 Ground water stress and overdraft

All figures in BCM (2004)

38
 GW stress across sectors will increase
Domestic & industrial demand projection across states

All figures in BCM

39
 Ground water rights WRM

Legal Frameworks
• Under Indian common law there is no property in ground water until it has been the object • Ground water Rights
of an ‘appropriation’ - by being pumped from a bore hole • Public Trust Doctrine
• GW Regulation
• Transfer of Property Act IV, 1882 and the Land Acquisition Act, 1894 - Right to ground • CGWA
water use is tied to land ownership
Ground Water for
Multiple Users
• Indian Easement Act, 1882, establishes limited links between ground water ownership and
land ownership
Water Resources
Management
“The right of every owner of land to collect and dispose within his own limits of all water
under the land which does not pass in a defined channel and all water on its surface which
does not pass in a defined channel.” Role of Water
Regulators

40
 Public Trust Doctrine for natural resources WRM

Supreme Court in M.C. Mehta v. Kamal Nath guides the legal framework governing
water resources Legal Frameworks
• Ground water Rights
“Our Indian legal system, which is based on English common law, includes the • Public Trust Doctrine
public trust doctrine as part of its jurisprudence. The State is the trustee of all • GW Regulation
natural resources, which are by nature meant for public use and enjoyment. • CGWA
Public at large is the beneficiary of the seashore, running waters, airs, forests
and ecologically fragile lands. The State as a trustee is under a legal duty to Ground Water for
protect the natural resources. These resources meant for public use cannot be Multiple Users
converted into private ownership. … Thus, the Public Trust doctrine is a part of
the law of the land” Water Resources
Management
The applicability of PTD to groundwater, however, remains unclear due to the two
contrary orders pronounced by the Kerala High Court.
Role of Water
Perumattty Gram Panchayat vs. State of Kerala (2003) Regulators
Hindustan Coca Cola Beverages (P) Ltd vs. Perumatty Gram Panchayat (2005

41
 Ground water regulation WRM

• State governments have power to restrict construction of groundwater abstraction

Legal Frameworks
• Authority can declare any area to be a ‘notified area’ if control, regulation, extraction and use of • GW Rights
GW is deemed necessary • Public Trust Doctrine
• GW Regulation
• Anyone (except small and marginal farmers) wishing to sink a well for any purpose within the • CGWA
notified area must obtain a permit from the authority
Ground Water for
• GW users in the State need a Certificate of Registration recognising its existing use and
authorising the continued use of GW Multiple Users

• Authority could take steps to ensure that exploitation of GW resources does not exceed the Water Resources
natural replenishment to the aquifers Management
• Maharashtra, Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh, West Bengal enacted ground
water (regulation) legislation Role of Water
Regulators

42
 Ground water regulation - CGWA WRM

• Central Ground Water Authority constituted under sub-section (3) of the Legal Frameworks
Environment (Protection) Act, 1986 • GW Rights
• Public Trust Doctrine
• GW Regulation
• Areas of activity • CGWA

• Notification of areas for regulation of GW development Ground Water for

Multiple Users
• Regulation of GW abstraction by industries
• Registration of drilling agencies for assessment of pace of development of GW and
Water Resources
regulation of well drilling activities
Management
• Representation in the National Coastal Zone Management Authority and other Expert
Committees of Ministry of Environment & Forests
Role of Water
• Undertaking country-wide mass awareness programmes and training in rain water
Regulators
harvesting for ground recharge

“The problem is not in enactment but in enforcement.”

43
 Managing ground water: A regional problem? WRM

Legal Frameworks

Ground Water for

Multiple Users
• Supply side
management
• Demand side
management

Water Resources
Management

Role of Water
Regulators

State of Ground Water in India

44
 Supply side management WRM
• More enthusiasm towards augmenting supply of GW resources than
containing demand
Legal Frameworks

• Rainwater harvesting, tanks, dug wells, streams and canals increasingly Ground Water for
used for groundwater recharge Multiple Users
• Supply side
management
Watershed development undertaken by various ministries • Watershed Development programme • Demand side
(in million ha, up to March 2006) by GoI for GW recharge: management
0.07 • Rs 17035 crore spent on covering
45.4 Mn Ha. cumulatively Water Resources
18 • Rs 36,000 crore for 36 Mn Ha. Management
proposed in 11th FYP
28 Role of Water
Regulators
Ministry of Agriculture ( Department of Agriculture & Cooperation)
• No hard evidence of significant and
Ministry of Rural Development ( Department of Land resources) sustained improvement in GW status at
Ministry of Environment & Forests sub-basin level

45
 Demand side management – WRM
Participatory Groundwater Management
Increase in Legal Frameworks
ground water
pumping
7% • APFAMGS Project: 650 villages, 62 Ground Water for
Intermittent Decrease in
hydrological units, 7 drought prone Multiple Users
decrease in • Supply side
ground water
ground water districts
pumping
pumping management
51%
42% • Platform of Farmer Water Schools • Demand side
management

Water Resources
• Participatory Hydrological Monitoring: farmers equipped to record & analyse GW level and Management
rainfall data
Role of Water
• Environmental Viability Assessment: Farmers equipped to assess GW recharge & Regulators
utilisation in given unit.
• Crop Water Budgeting: Crop selection according to water availability, Crop water budget session
at start of the Rabi season for alternative agriculture practices w.r.t GW availability

46
 Gaps in Water Resources Management WRM
Accounting for
• All uses: Agriculture, Domestic, Industry and Environment
Legal Frameworks
• Rise in urban population: 40% by 2030 , 48-60% by 2050
Ground Water for
Need for Multiple Users
• Professional management of water resources
• Conjunctive use of surface and groundwater resources
Water Resources
Management
• Long-term vision on WRM in India
• Gaps
• Engagement with stakeholders and end-users • Phases in River Basin
Management
• Governance of River
River Basins Basins
• Many already ‘closed’ • Water Resources
• Continuous focus on irrigation sector is no longer sustainable Administration

Role of Water
Regulators

47
 Phases in river basin development WRM

Legal Frameworks

Ground Water for

Multiple Users

Water Resources
Management
• Gaps
• Phases in River Basin
Management
• Governance of River
Basins
• Water Resources
Administration

Role of Water
Regulators

48
 Shifting to demand-side management WRM

Management decisions at different phases Legal Frameworks

of development
Ground Water for
Multiple Users
Construct Legislate Enforce Manage demand Empower

WRM Water Resources

Management
• Gaps
• Phases in River Basin
Management
• Governance of River
Basins
Time • Water Resources
Threats and opportunities: Areas for action Administration
• Increased risk (from droughts) • Engagement with stakeholders
• Climate change • Re-education of water professionals,
• Management options constrained
Role of Water
politicians and planners
• Involvement of stakeholders • Knowledge management and dissemination Regulators
• Need for dialogue • Improved efficiency and productivity of water
• Need for information dissemination • Water trading
49 • Reducing reserve for development • Institutional reform in the water sector
 Integrated planning of water resources WRM

Benefits
• Better utilisation of available water resources Legal Frameworks
• Reduction in conflict
• More intensive, and safe, use of wastewater Ground Water for
• Improved water quality for both natural and human environment Multiple Users
• Recovery of depleted groundwater resources
• Inclusion of a wider range of stakeholders Water Resources
• Forum for resolution of crisis situations (natural or man-made) Management
• Gaps
• Phases in River Basin
Constraints Management
• Requires genuine collaboration between agencies, organisations and individuals • Governance of River
• Planning and decision-making can be more complex and time-consuming Basins
• Costs may be significant • Water Resources
• Some stakeholders may need to relinquish power “to the common good” Administration
• Potential opposition to transparent and accountable decision-making
Role of Water
Regulators

50
 Enabling conditions for WRM WRM

Legal Frameworks
Conditions

Political Informational Legal Ground Water for

authority Resources
attributes attributes Multiple Users

Water Resources
Human Management
Balanced power Process Adequate powers • Gaps
transparency
• Phases in River Basin
Management
Representation of Informational Appropriate Financial • Governance of River
Attributes

interests availability Institutions Basins

• Water Resources
Information Institutional Administration
accessibility

Infrastructure Role of Water

Regulators

51
 Additional requirements for WRM WRM

Institutional Data Legal Frameworks

• A Water Resources Act • Mapping of all water resources (surface Ground Water for
• To establish the proposed organisational and groundwater) Multiple Users
framework • River and stream flow measurements
• To establish rights to water and conditions • Lake/reservoir water levels and volumes Water Resources
of use • Groundwater levels and quality in aquifers Management
• To cover both surface and groundwater • Details of all water abstractions (type of • Gaps
• An apex coordination body abstraction, use, location, quantities • Phases in River Basin
• An executive body abstracted, etc.) Management
• Separation of water resources allocation • Wastewater discharges into water bodies • Governance of River
Basins
and water delivery (volumes, location, type, quality, etc.)
• Water Resources
• Consultative bodies to engage local • Flood levels, flows and areas inundated
Administration
stakeholders in water resource planning, • Type and location of infrastructure (dams,
allocation and management barrages, pump stations, wastewater
Role of Water
treatment plants, etc.)
Regulators

52
 Water resources administration WRM
Possible Organisational Structure for WRM
Legal Frameworks

Ground Water for

Multiple Users

Water Resources
Management
• Gaps
• River Basin
Management
• Governance of River
Basins
• Water Resources
Administration

Role of Water
Regulators

53
 Alternative governance roles WRM

Andhra Pradesh Maharashtra Legal Frameworks

Planning Planning Ground Water for

Water Management Committee Council under CM – Board under Chief Multiple Users
Secretary
Tariff Water Resources
Group of Ministers fix Tariff Management
Regulatory Authority • Gaps
Regulation • River Basin
Regulatory Commission – Quality, service Regulation Management
standards and publication of annual audit Regulatory Authority assumes basic • Governance of River
report governance functions Basins
• Water Resources
Administration

Role of Water
Regulators

54
 Water regulator WRM

Regulatory functions needed

• Set service fees (tariffs)- to sustain physical infrastructure over time Legal Frameworks
• Provide water users with rights or entitlements to water
• Plan and manage water resources in a rationale, transparent and accountable manner Ground Water for
Multiple Users

Water Resources
Is a water regulator required? Management
Arguable Neither necessary nor desirable
Role of Water
No national irrigation/ bulk water Regulators
Required Not necessary supply market • Regulatory functions
needed
Tariff could be
To monitor tariff
set by service
To ensure provider
service quality Entitlements
could be set by
government
55
 Urban and industrial water use

1. Developing a Water Conservation

Strategy for Industry

2. Water Utility Management: Urban

Water Supply Reform and Use of
Public Private Partnerships

3. Governing the Entrepreneurial

Sector

4. Regulation of Water Supply and

Waste water
56
 Increasing sector demands
Issues
• Water conservation and efficiency across all sectors
• Increasing water and sanitation demands in the urban environment
• Support industrial and business growth
• Lack of governance expertise in delivering the infrastructure and management systems

Business-as-Usual Scenario Prediction (figures in BCM)

57
 Water Conservation Strategy (WCS) Urban &
Industrial
Potential water saving (%) in industry sector Water Conservation
• Partnerships with industry
Strategy (WCS)
• Delivery of WCS
• Information and target • Case Studies
setting by industry type − International

• Best Practice Guidance – Water Utility

knowhow for businesses Management
and industries
Governing the
• Grant programmes and Entrepreneurial
incentives linked to Sector
abstraction regulation and
pricing policy Regulation

Potential water saving (in percentage) from measures applied in the

industry sector
58
 Water Conservation Strategy (WCS) Urban &
Industrial
International examples
Water Conservation
Strategy (WCS)
• Delivery of WCS
• Case Studies
− International

Water Utility
Management

Governing the
Entrepreneurial
Sector

Regulation

59
 Public Private Partnerships (PPP) Urban &
Industrial
Evolution in India
Water Conservation
Way Strategy (WCS)
Ahead?
Water Utility
Now Management
• Evolution in India
Mid
• Motivation
Mid to decade
• Types and allocations
Late 90s
Around • Models of Water Utility
2000 • India’s Experience
• Case studies
−India
−International
Initial Market Development KUWASIP Success • Policy Considerations
International interest Efforts to prepare PPP projects Many ongoing initiatives
Operator Sponsored High NGO opposition First Long term Lease signed Governing the
Poor results High profile projects run a ground About 10 projects in progress Entrepreneurial
Sector

Source: Crisil 2011 Regulation

60
 Public Private Partnerships (PPP) Urban &
Industrial
Water Conservation
Motivation Strategy (WCS)

• Economic reform - business opportunities - generate economic growth Water Utility

Management
• Develop capacity in management and technical skills • Evolution in India
• Motivation
• Catalyse investment in essential infrastructure • Types and allocations
• Models of Water Utility
• Improvement of governance of urban services • India’s Experience
• Case studies
−India
−International
• Policy Considerations

Governing the
Entrepreneurial
Sector

Regulation
61
 Public Private Partnerships (PPP) Urban &
Industrial
Types and allocation
Water Conservation
Strategy (WCS)
Commercial Increase
Options Ownerships O&M Capital Risk Duration in Risk Water Utility
Service Management
• Evolution in India
Contract Public Private Public Private 1-2 years • Motivation
Management • Types and allocations
Contract Public Private Public Private 3-7 years • Models of Water Utility
Lease Public Private Public Private 8-20 years • India’s Experience
Concession Public Private Public Private 20-30 years • Case studies
−India
BOT/BOO Private & Public Private Private Private 20-30 years −International
Private / Private • Policy Considerations
Privatisation & Public Private Private Private Indefinite
Governing the
Entrepreneurial
Sector

Regulation
62
 Public Private Partnerships (PPP) Urban &
Industrial
Models of water utility Water Conservation
BULK WAREHOUSING RETAIL Strategy (WCS)
WATER INTAKE, STORAGE & DISTRIBUTION,
TREATMENT & TRANSMISSION BILLING & Water Utility
Water
PUMPING COLLECTION Management
source • Evolution in India
• Motivation
• Types and allocations
24 x 7 • Models of Water Utility
RECYCLE CUSTOMER • India’s Experience
• Case studies
−India
Pollution
Control −International
Board • Policy Considerations

SEWAGE OFFTAKE,
SEWERAGE
Governing the
TRANSMISSION,
TREATMENT & COLLECTION Entrepreneurial
DISCHARGE NETWORK
Sector

Regulation
63
 Public Private Partnerships (PPP) Urban &
Industrial
India’s experience
Water Conservation
• North Karnataka Cities, Nagpur, Alandur (Tamil Nadu) & Khandwa (MP): make PPP
Strategy (WCS)
potential solution for improving services
• Problems with not so well prepared or high risk PPP contracts: Mysore Delegated Water Utility
Management Contract and Aurangabad Water Supply Improvement Project Management
• Emerging social enterprise industry • Evolution in India
• Motivation
• Types and allocations
What has possibly changed? • Models of Water Utility
• India’s Experience
• Demonstration of success stories • Case studies
• Focus shift from investment to management efficiency −India
−International
• Public finance and private management is increasingly accepted • Policy Considerations
• Recognition of need for cost recovery
• Increasing domestic entrepreneur interest Governing the
• Selective outsourcing in utilities Entrepreneurial
• Recognition of limitation of public sector service rules to manage essential round Sector
the clock service delivery
Regulation
64
 Case Studies - (PPP) Urban &
Kanpur water account 2009-10 Industrial
Water Conservation
PRODUCTION AT RESERVOIR AT CUSTOMER
Strategy (WCS)
650/410 400 168 650/410 – Design/Average
Production Capacity
Ganga All numbers in average million Water Utility
+ litres/day (MLD)
Management
• Evolution in India
200(GW)
• Motivation
• Types and allocations
180 • Models of Water Utility
UNTREATED
• India’s Experience
• Case studies
171/100 100 280 • India
−International
TREATED COLLECTION SEWAGE
• Policy Considerations
Experience in Karnataka (3 cities)
Governing the
Before After Entrepreneurial
Supply frequency 2 hrs in 3 - 10 days 24 hours Sector
No. of connections 16399 24145
Regulation
Non Revenue Water 45% 6%
65
 Case Studies - (PPP) Urban &
Industrial
International
Water Conservation
Strategy (WCS)

Water Utility
Management
• Evolution in India
• Motivation
• Types and allocations
• Models of Water Utility
• India’s Experience
• Case studies
−India
- International
• Policy Considerations

Governing the
Entrepreneurial
Sector

Regulation
66
 End goal is water utility management Urban &
Industrial
Water Conservation
Lessons Strategy (WCS)
• “Political” commitment, leadership, agreement and stability are critical: at all levels
• PPP is not an objective in itself Water Utility
• Each situation is different: no “standard” models Management
• Evolution in India
• Motivation
• Types and allocations
Policy Considerations • Models of Water Utility
• India’s Experience
• Arrangements are consistent with national objectives
• Case studies
• PPP targets: realistic, unambiguous & set in context of verified data −India
−International
• Pro poor & community participation
• Policy Considerations
• PPP partner company must have: financial strength and management integrity
• Clear process of tariff setting Governing the
• Political interference ‘free’ regulation Entrepreneurial
• Ensure good governance and accountability in public interest Sector

Regulation
67
 Governing the entrepreneurial sector Urban &
Industrial
Forging working relationships Water Conservation
Strategy (WCS)
• Water supply sector should embrace opportunities and
services that entrepreneurs bring to improving water and sanitation Water Utility
Management
• Acceptance of entrepreneurial contributions through regulation: recognise their
investment, protect them from unfair competition Governing the
Entrepreneurial
• Entrepreneurship should be regarded in wider context: maintenance, outsourcing Sector
of services, suppliers of equipment
Regulation
• Encourage the working of water supply sector: private sector relationship through
legislation and by establishing an appropriate system of regulation

68
 Regulation of industry water use Urban &
Industrial
Regulation objectives Water Conservation
• Over-arching objective: “that investments are used effectively in a way that Strategy (WCS)
maximises their benefits to all water users and to provide a framework that
induces public and private sources to finance investment projects” Water Utility
Management
• Public sector control over utility service providers (public or private)
Governing the
• Ensuring service providers have financial resources to operate and invest Entrepreneurial
Sector

Good regulation in water supply: as a balance Regulation

• Case studies
Regulate - but also - Protect & Allow - International
prices operations and businesses sufficient freedom to
quality investments from manage according to business
access arbitrary government judgement
decisions

69
 Options for regulation of industry water use Urban &
Industrial
Water Conservation
Strategy (WCS)

Water Utility
Management

Governing the
Entrepreneurial
Sector

Regulation
• Case studies
- International

70
 Institutional reforms

1. Water Governance at the State

Level
2. National Water Commission

71
 Water governance at the state level Institutional
Reforms
Possible organisational structure for WRM
Water Governance at
the State Level
• Possible organisational
structure for WRM
• Possible State Water
Administration
structure

National Water
Commission (NWC)

72
 Water governance at the state level Institutional
Reforms
Possible State Water Administration structure
Water Governance at
the State Level
• Possible organisational
structure for WRM
• Possible State Water
Administration
structure

National Water
Commission (NWC)

73
 National Water Commission (NWC) Institutional
Reforms
Premise
• By some estimates usable supply of water will fall short of project demand in the next
Water Governance at
fifteen years
the State Level
• There is expected to be a shift in the sectoral demand for water
• No alternative than to view the planning and management of water from a national National Water
perspective- if supply is fixed & demand rises Commission (NWC)
• Premise
• Role of NWC
Rationale for an NWC: Gaps in current water management • 12 FYP
• Technical assessment of projects • Long term
– No mandate for assessing the state of water resources as a
– No obligation to continue assessments after clearances have been awarded
• Treating water as a national resource
• Availability of timely and usable information
• Capacity for management
– No countrywide institution that has the responsibility to assess the skills gap,
identify the balance of human resources in different water subsectors

74
 National Water Commission (NWC) Institutional
Reforms
Role of NWC
• Technical assessor to monitor progress during construction and timely completion of Water Governance at
projects, and to continuously assess the management of projects after completion (support the State Level
PC & MoEF)
National Water
Commission (NWC)
• Guardian or watchdog of national water resources, states' rights and individual entitlements • Premise
• Role of NWC
• 12 FYP
• Aggregator and public communicator of data and information
• Long term

• Facilitator and capacity developer

– Support states with advice on institutional design, capacity and skills
development
– Offer technical advice and inputs

75
 National Water Commission (NWC) Institutional
Reforms
Specific functions during the 12th FYP
Water Governance at
• Empowered Working Group to start working on a National Water Strategy and submit
the State Level
proposals to the National Development Council
National Water
• Information collection and dissemination (up-to-date macro data to develop the broad Commission (NWC)
elements, stimulate public debate) • Premise
• Role of NWC
• 12 FYP
• Capacity building activities, assessing skill gaps for water management through a service • Long term
delivery mode

• Coordination and networking across sectors and levels of government

• Engagement with potential local and foreign investors

– full transparency concerning all contract details of individual projects

76
 National Water Commission Institutional
Reforms
Long Term
• Guardian and overseer of the National Water Strategy once it has been approved and Water Governance at
adopted by the National Development Council the State Level

National Water
• Technical advice to central and state water administrations Commission (NWC)
• Premise
• Watchdog of the rights of all water stakeholders and particularly the state of the country’s • Role of NWC
water resources • 12 FYP
• Long term

• Continuous benchmarking of best institutional practices, efficiency standards, human

resource and capacity requirements

• Continuing role in information dissemination, transparency, capacity building, and public

education and advocacy

77