Groundwater Economics and Policy in South Asia

Chapter 1

Introduction

1.1 Changing character of groundwater debate in South Asia

Globally, the sub-continent of South Asia uses the largest amount of groundwater (Qureshi, 2020). Among the South Asian countries, India is the largest user of groundwater not only in the sub-continent but in the entire world, surpassing the most populous country, i.e., China (Jadhav, 2018; Shiferaw, 2021; World Bank, 2010). Pakistan is the second-largest user of groundwater in the sub-continent (60 BCM per annum), with a major part of the country experiencing arid climatic conditions. The third largest user of groundwater in the sub-continent is Bangladesh, with an annual withdrawal of 30 BCM (Subhadra, 2015; Suhag, 2016; Qureshi et al., 2014). With a net irrigation of 48 m.ha from groundwater, these three countries account for 42% of the world's well-irrigated area (Mukherji et al., 2015). Among all the South Asian countries, India is quite unique in the sense that all the climates that are witnessed in the sub-continent are experienced in one or more parts of the country, from hot and hyper-arid to hot and arid to hot and sub-humid to hot and humid to cold and humid to a cold, dry desert. Almost all the geological formations that bear groundwater and that are encountered in other countries in South Asia, such as unconsolidated formations, semi-consolidated formations, and consolidated formations, are encountered in India as well.

With its intensive use for irrigation, rural and urban drinking, and industry, groundwater resources are over-exploited in many semi-arid and arid parts of India, with several manifestations such as alarming drops in water levels in alluvial areas, rapid seasonal depletion in hard rock areas, increasing salinity of groundwater in inland areas and seawater intrusion in coastal regions (FAO, 2012). There are also pockets or regions in India where groundwater resources are plentiful and the water table remains high, but direct access to the resource is limited to a few due to the poor economic conditions of a large proportion of the farmers. Problems of over-exploitation of groundwater are also witnessed in large parts of Pakistan, along with growing problems of salinity in groundwater (Qureshi et al., 2010; Qureshi, 2020). In countries such as Afghanistan and Sri Lanka, groundwater exploitation is still limited due to a variety of reasons. In Bangladesh, in spite of having heavy rainfall and good surface water availability, groundwater draft has become significant in the past 30 years or so. As per a 2014 report, there are 1,523,322 shallow tube wells and 35,322 deep tube wells in Bangladesh to provide water for irrigation. About 79% of the total cultivated area in that country is irrigated by groundwater (Qureshi et al., 2014).

There are no particular groundwater conditions observed elsewhere in South Asia but not experienced in India—whether in terms of quantity or quality. As a result, strategies evolved to tackle groundwater problems in various Indian situations can provide strong clues on the ways to tackle similar problems in other South Asian countries. Even by the official estimates of the Central Ground Water Board (CGWB), whose methodology to estimate groundwater resource availability is still not perfect and tends to over-estimate the resource availability (Kumar & Singh, 2008), nearly 17.5% of the 6881 assessment units in the country are already over-exploited—with abstraction exceeding annual recharge (CGWB, 2019). There are many regions where groundwater suffers from problems of contamination, with excessive levels of salinity, fluorides, chlorides, nitrates, and iron in many parts, and arsenic in some pockets of the eastern region (CGWB, 2010).

Currently, roughly 65% of India's gross irrigation comes from groundwater sources such as open wells, bore wells, and tube wells. In addition, 80% of the rural drinking water supplies and half of the urban water supplies are managed through supplies from wells. Therefore, groundwater depletion and groundwater quality deterioration problems, if left unchecked, can pose a serious threat to agricultural production and food security, economic growth in rural areas, and drinking water security, especially in rural areas and small towns. In many semi-arid areas underlain by alluvium, with a significant long-term decline in groundwater levels, investment for well construction has enormously increased, with direct access to the resource now being limited to only rich farmers. In hard rock areas, the rampant failure of wells and reduction in well yields is making well irrigation unaffordable for resource-poor farmers. Over-exploitation is also resulting in the widespread failure of drinking water wells in villages falling in the hard rock areas.

What is generally seen in any part of the world is that the communities as well as the governments exploit groundwater when good quality surface water is not available locally in adequate quantities to meet local water demands. In all other South Asian countries, groundwater is a source of water for irrigation and domestic and industrial water supply. However, the intensity of use varies from country to country and from region to region depending on the rainfall conditions, surface water availability, climate, and geohydrology, with the first three factors determining the demand for groundwater and the fourth one determining the supply potential of the aquifers. Exceptions are African countries, where the high cost of well drilling, poor rural electrification, and expensive fossil fuels are constraints to exploiting groundwater, and as a result, the intensity of resource use is still very low in most of them. The current thinking about groundwater problems and management solutions in India and a few other South Asian countries such as Pakistan and Bangladesh, and the experience of these countries in dealing with the problems, will be extremely relevant not only for every country in South Asia but also for many countries in Africa.

The debates around the management of groundwater resources in South Asian countries, especially India and Pakistan, began in the early 1990s. It marked a major departure from the earlier debates around issues of access equity and efficiency in groundwater use and looked at the issues and challenges of ensuring the sustainability of resource use and sustaining agricultural production supported by its intensive use in semi-arid regions, as well as equity in access to the resource that was becoming increasingly scarce. In the initial years, such debates covered the following: (1) community awareness for resource protection and conservation; (2) artificial recharge of groundwater in the over-exploited regions using local water resources with the involvement of communities; (3) introducing water conservation practices in irrigated agriculture that accounts for a major share of the total groundwater consumed annually; (4) regulating groundwater use through powerful state legislations; (5) enabling government legislations for the local communities to manage groundwater; (6) large-scale water transfers for conjunctive management of groundwater and surface water; (7) creating a proper water rights system and allocating these rights amongst various users/user groups; (8) building local community institutions for groundwater management at various scales from village to aquifer, with the support of the institutional regime of water rights supported by law; (9) policy interventions to promote equity in access to groundwater; and (10) using economic instruments such as groundwater pricing and pricing of energy used for pumping groundwater. Thus, the debate was quite rich and comprehensive and covered all crucial aspects of water management—from technical to social to economic to institutional to legal (Moench et al., 1993). But such debates never found adequate space in academic literature and course materials of advanced studies in water resources management and water economics and policy.

Over the years, the debate lost the seriousness and depth that it calls for as no significant initiative came from the government front to address growing groundwater challenges in a comprehensive manner. In spite of having serious groundwater depletion problems, in India, which had the highest dependence on groundwater for irrigation among all the South Asian countries, the governments of the country began to treat the problems with kid gloves. The water bureaucracies at the central as well as the state level, being influenced by a few highly localized experiments of NGOs across the country that were touted as successful and that received high media publicity, started advocating decentralized water harvesting and recharge (Kumar, 2018; Kumar & Pandit, 2018), while also making half-hearted attempts to regulate groundwater abstraction by millions of farmers through vacuous legislation. In the process, the debate, which was otherwise serious and academic in nature, got hijacked by the motivated writings of a few influential researchers and groups, who seemed to believe that the agenda of sustainable groundwater resource development and management can be finished with the help of a few wealthy farmers and community leaders with some government support through extra energy subsidies and funds for groundwater recharge (see, Mukherji et al., 2009, 2010;Shah, 1993, 2000).

They advocated some piecemeal approaches such as decentralized water harvesting and recharge (Shah, 2000; Shah et al., 2003); large-scale promotion of micro irrigation systems; electricity supply rationing for the agriculture sector (Shah & Verma, 2008); participatory forms of groundwater management, using aquifer-based common pool resource approaches (Kulkarni et al., 2015); cash incentives for farmers who restrict power consumption (Gulati & Pahuja, 2015); and heavily subsidized power connections for farm wells in water-rich regions, and subsidized and unmetered electricity supply to such wells (Mukherji et al., 2009).

These approaches lacked any serious understanding of the resource dynamic, particularly the regional variations in resource availability, and the community behavior, particularly how the farmers respond to the state interventions such as electricity supply rationing for agriculture, provisioning of cash incentives for regulating electricity use by them, tariff subsidy for grid-connected solar power, subsidy for construction of farm ponds, etc. The subject which is otherwise complex given the nature of the resource and the dynamics of its availability and use, and which demanded serious academic research in disciplines as varied as hydrology and geohydrology, economics, public administration, sociology, and law, thus got trivialized.

The support for these quick-fix solutions was built on the narrative that the traditional way of solving groundwater problems using management tools that are tried and tested in the developed countries of the west (like groundwater pricing, energy rationing, and water rights reforms, registration of wells, providing cheap replacement water to reduce groundwater dependence, etc.) is mundane and would not work in the Indian context. However, there are occasional concerns raised about distributional equity that such quick-fix solutions can pose. To eclipse such concerns, comparisons are made with public surface irrigation, falsely claiming that access to groundwater is more equitable, with the resource largely benefiting the poor small and marginal farmers, and its use more efficient, so any amount of investment in managing groundwater can be justified.

On the teaching and training front, the academic and research institutions running courses in natural resource management and resource economics and policy always were short of materials based on empirical research that could be used for teaching advanced courses for M.A., M. Phil, and Ph.D. This was especially true for water resource management, and water economics and policy. The faculties in such institutions had to depend on books written several decades ago, which were not updated to keep pace with the advanced concepts, theories, and practices in the related physical and social science fields that are essential for policy making. Worse is the case for thematic areas like groundwater, where there are no solid empirical research-based materials available from the developing countries of Asia, including China, for secondary reading in groundwater resource dynamics, resource assessment, socioeconomic aspects of groundwater use, and economic instruments and institutions for groundwater management.

There were a few attempts to apply some of the solutions earlier mentioned by a few state governments to arrest groundwater depletion through new programs, which include the governments of the states of Punjab, Gujarat, Madhya Pradesh, Andhra Pradesh, Maharashtra, and Telangana in India through popular schemes. Sufficient time has lapsed since these programs were first piloted or implemented, and thus their outcomes can be clearly assessed through proper methodologies to see whether the intended outcomes have been realized or not. While the researchers who championed these schemes eulogized them like evangelists through their academic writings, a few empirical studies have happened in the past that critically and objectively evaluated the impacts of these policies and programs from inter-disciplinary and multi-disciplinary perspectives. Interestingly, there were also isolated attempts by the governments in Bangladesh to implement innovative solutions that use advanced concepts to regulate groundwater over-draft. An example is the introduction of pre-paid meters for agricultural groundwater pumping in Bangladesh. Given this context, it is time to revisit the old debates in light of the emerging concepts, theories, and practices with available empirical knowledge of their application on the ground to have a more nuanced and policy-oriented debate on viable alternatives for sustainable groundwater management in South Asia.

Such a critical analysis of the management options, if presented with theoretical frameworks and several empirical examples of their applications, will be of immense value not only for groundwater professionals and policymakers in South Asia but also for the researchers, multi-lateral donors, and government policymakers in countries of Africa as well as other countries of Asia that are on the same development trajectory as that of India, thereby being able to channelize the debate to come up with sound groundwater development and management policies. For the academicians who currently use fringe literature that is based on outdated concepts and theories for teaching courses in water resources management, and water economics and policy, this will serve as secondary reading material.

1.2 Purpose and scope of the book

The purpose of the book is to generate a nuanced and informed academic debate on the physical, social, economic, legal, institutional, and policy aspects of groundwater management in South Asia, the subcontinent which constitutes the largest user of groundwater in the world on an annual basis. It does so by presenting the theoretical arguments and empirical evidence about the characteristics of the resource—quantity, quality, and variations across regions and seasons—its use (levels of use, equity, and efficiency), the magnitude of over-exploitation problems, and the various groundwater management solutions initiated by governments and NGOs on the resource availability, and equity in access and control over the resource. The idea is to thoroughly discuss various concepts, theories, and practices in disciplines such as hydrology, economics, and institutions that are discussed and tried so far in the South Asian context to manage groundwater. It is also to help academics handling advanced courses in groundwater resource management and groundwater economics and policy with methodological and analytical approaches, and provide government policymakers, groundwater professionals, and donors with decision-making frameworks.

By first critically analyzing the resource conditions and the over-exploitation problems, and then evaluating the past attempts to manage groundwater on the engineering, social, economic, institutional and legal fronts, using knowledge from disciplines such as geohydrology, hydrology, agronomy, economics, and institutions, the book provides a thorough database and knowledge on what can work and what cannot for managing groundwater in a complex situation like the one present in South Asia. It offers groundwater management solutions for different typologies of socio-ecological settings (alluvium with intensive groundwater use, alluvium with low levels of groundwater use, and hard rocks with intensive groundwater use). It also shows how programs that are ill-conceived but touted as highly successful can produce impacts that are totally undesirable. It thus makes a unique contribution to the field of groundwater economics, management, and policy.

The book offers a thorough analysis of the groundwater availability and use situation in India with a particular focus on regional patterns; provides a critical assessment of how over the years various public policies have impacted the access to and use of groundwater by various segments of the farming communities, particularly the equity in access to groundwater and efficiency in use for agricultural production; critically reviews the resource assessment methodologies adopted by official agencies, highlighting their flaws and shows how such flaws can lead to wrong management decisions; and critically evaluates several schemes implemented in different parts of the sub-continent, some of which are touted as highly successful and some controversial, for their effectiveness in checking groundwater depletion using sound principles in water management, and shows how the past analyses of their impacts on the resource condition have been misleading and flawed. Drawing definite clues from these Indian experiences and some of the international experiences, the author presents some viable alternatives for groundwater management for the distinct socio-ecologies that exist in the sub-continent, built on strong conceptual and theoretical foundations, and discusses how they can be implemented. Finally, some policy lessons for other countries, especially those from Africa that are at an earlier stage in the groundwater development trajectory, are