ISSUE 10, 2007 For Private circulation only

TECHNICAL DIGEST

GROUND WATER GOVERNANCE ISSUES IN IRRIGATION DEVELOPMENT - A PERSPECTIVE

J o h n Kurien^ and A s h u t o s h Kumar Sinha^ BCM of surface water and 400 BCM of g r o u n d w a t e r . It is however possible to augment additional surface water resources up to 240 BCM through inter basin transfer. Out of the available utilisable resources, only 605 BCM are presently utilized, of which Irrigation accounts for nearly 500 BCM, Domestic use for 30 BCM, Industry for 20 BCM, Energy for 20 BCM and other uses account for balance 35 BCM. Thus, irrigation alone constitutes about 80 percent of the total utilised w a t e r r e s o u r c e s of t h e C o u n t r y . H o w e v e r , t h i s comfortable position w o u l d not continue in future because of competing demands f r o m other sectors, p a r t i c u l a r l y d r i n k i n g w a t e r r e q u i r e m e n t s , since prioritized under National Water Policy.Therefore, future planning for expansion of agriculture / irrigation w o u l d not have t h e l u x u r y of unrestricted water availability and one has to proceed differently on a natural resource management concept, if only to set the path f o r a s e c o n d g r e e n r e v o l u t i o n of f o o d sufficiency and high marketable surpluses.Although surface and ground water are inter-related resources, this paper will focus mainly on the theme of this Symposium i.e. the ground water governance issues. Let us begin by l o o k i n g at the status of physical progress in this regard. 2. Progress of Ground Water Development

1.

Introduction

Irrigated agriculture is fundamental to Indian economy, particularly, f r o m poverty alleviation point of view. Agriculture alone accounts for nearly 30 percent of GDP and 70 percent of employment in the Country. Irrigation is a primary input to agricultural production. W i t h the rapid expansion of irrigation in terms of commissioning of major, m e d i u m and minor irrigation projects through various Five Year Plans, the potential created has g r o w n manifold since 1951. This has resulted in India moving f r o m the spectre of periodic famine and import of f o o d grains to the actuality of achieving self sufficiency in food and drought proofing, besides exporting select f o o d and horticulture crops. With ever increasing population, however, India would be required to feed about 1.40 billion people by 2025. The current f o o d production of nearly 210 million metric tons will therefore have to be raised to 350 million metric tons by then. A t the same time, there w i l l be an i n c r e a s i n g p r e s s u r e t o d i v e r s i f y t h e agricultural output by raising high value crops, such as, cash crops, horticultural crops etc., so as to give f u r t h e r b o o s t t o t h e rural e c o n o m y in t e r m s of generation of higher rural income and employment. H e n c e , j u d i c i o u s use of w a t e r u n d e r i r r i g a t e d a g r i c u l t u r e w i t h s t r o n g e m p h a s i s on water m a n a g e m e n t in t e r m s of water c o n s e r v a t i o n and augmentation of both the surface and the groundwater resources of the country is most important. 1.1 Water Resources of India The utilisable water resources of India are estimated at 1090 billion cubic meter (BCM) which includes 690
Ground water Dugwell North North East East Central West South Total 1,197.6 10.3 876.5 1,606.9 2,599.8 3,335.7 9,626.8 Shallow Tubewell 1,570.8 80 1,300 3,943.2 112.6 1,349 8,355.6 Deep Tubewell 92.1 0.9 15.9 77.6 171.4 172 529.9

Our country started with big publicly owned surface irrigation systems. However, over the past two-three decades, the major expansion in irrigation capacity has taken place in the private ground water irrigation and ground water has been the life line for agriculture specially during this period.
(in thousand nos.) Surface water* Sub total 2,860.5 91.2 2,192.4 5,627.7 2,883.8 4,856.7 18,512.3 Lift 5.6 3.2 157 228.8 104.1 108.1 606.8 Flow 25.7 47.4 148.6 140 90.3 189.9 641.9 Sub total 31.3 50.6 305.6 368.8 194.4 298 1,248.7

irrigation tanks included here * Chief General Manager', Assistant Manager^, TSD, HO

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2.1 Number of structures As per the latest 3rd Minor Irrigation census(as of 200001 )of the Go!, the number of minor irrigation structures existing in the country are as below. It may be recalled here that ground water irrigation structures almost entirely fall in the minor irrigation category. Thus we see that there are as many around 18.5 million ground water structures as of now-a big governance challenge. . , . 2.2 Area irrigated The irrigated area has increased handsomely over the y e a r s , c o n t r i b u t e d in no s m a l l m e a s u r e by t h e expansion of g r o u n d water irrigation. The current estimated position is as below. (in mha) ground water structures created, it is estimated not to cover more than 3 0 % of t h e m , i.e. a major portion of ground water irrigation has been self-financed by the farmers, and it is this category which has been almost entirely ungoverned. 2.4 GW available for future irrigation development Recently, the assessment of the dynamic ground water resourcesof the country was completed (March 2004) whose summary is given below.
Region Net Annua! ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ available for future irrigation development (in million ha.m/year) -1.27 4.12 3.64 4.84 1.84 3.03 16.2

North North East East Central West South

HIIP**
IK

Major/ Minor irrigation Sub-sector Medium Sub- Surface Ground Sub sector Water Water Total 58.5 17.4 64.05 81.45

Grand' Total

Ultimate Potential available Potential created Potential utilised

139.95

Total

32.69 28.20

12.24 10.82

45.88 42.05

58.12 52.87

90.81 81.07

The gap between ultimate potential, potential created and utilised points to the need for better governance w h i c h can s t i m u l a t e e f f i c i e n t u t i l i s a t i o n , t o t h e m a x i m u m extent, of the potential available. 2.3 Credit flow The flow of credit to minor irrigation sector of which more than 90 per cent is accounted f r o m ground water over the years, is as below.
(in Rs. crores) Year IX Plan 1997-98 1998-99 1999-00 2000-01 2001-02 XPIan 2002-03 2003-04 2004-05 1,975 2,730 4,214 1,584 1,856 2,132 1,820 1,845 Ground Level Credit

This shows that as of March 2004, there are 16.2 million hectare meter of dynamic g r o u n d water resources a v a i l a b l e in t h e c o u n t r y f o r f u t u r e i r r i g a t i o n d e v e l o p m e n t w h i c h , however, are very unevenly distributed in the different regions. The Western and Northern regions have low ground water availability and the assessment units are mostly categorised as critical and over-exploited, which denotes areas to be regulated for future use. 2.5 Status of ground water use ,'

The trend of block categorisation over the last 15 years is indicated in the Table below, which shows the fast depletion of resources. Table : Status of Ground Water use in the country, over the years 1992-2005 - increase in the numbers of 'unsafe'fsemi-critical, critical and over-exploited) blocks
Block Categorisation within the 'unsafe' category

Position as in January 1992 April 1998 August 2005 839 226 1,065 550 1,615

Over-exploited Critical/Dark Sub total Semi-critical/grey Total 309 309 16 325

416 416 448 864

It may be noted that this credit as well as that over earlier year5, has mainly f l o w n to the private ground water sector through structures o w n e d by farmers. However, as a percentage of the total number of private

Thus, w e see the situation is fast deteriorating, and urgent steps are required. Sound governance is the single most important necessity in this direction.

teSUE 10, 2007 For Private circulation only

rEGHNIGAl DIGEST
w o u l d mean that everybody has access to water at least as per their m i n i m u m needs. 3.5 Sustainability This is a b o u t m e e t i n g t h e needs of t h e present generation without harming the prospects of the future g e n e r a t i o n . This may require curtailment of the present levels of consumption of the resources. An example of this is the current restrictions on the ground water use to the annually rechargeable d y n a m i c resources. 4. Ground Water Governance Rules and

3.

Governance

The term governance deals with the processes and systems by which an organisation or society operates. The World Bank defines governance as "the exercise of political a u t h o r i t y and t h e use of i n s t i t u t i o n a l resources to manage society's problems and affairs". A n alternative definition suggests that governance is "the use of institutions, structures of authority and even collaboration to allocate resources and coordinate or control activity in society or the economy". Thus, governance can be taken to be broadly synonymous with authority, decision making, power, administration, or politics.However, more specifically, w e shall take governance to mean t w o broad things - Rules and Institutions/Agencies. 3.1 Rules Rules are the agreed sets of behaviour to be complied by the whole society. There can be formal rules in the shape of Constitution, various legislations, bye-laws, customary laws, case laws, etc., and there can be informal rules in the f o r m of social consensus/wisdom, w h i c h although not c o d i f i e d , have some force for c o m p l i a n c e by i n d i v i d u a l s , and t e n d t o b e c o m e codified over the years.The rules existing in the water sector are - Constitutional entries in the Union/State lists. Inter State Water Dispute Act, some State Water Acts, WUA Acts, Easement Act, etc. 3.2 Institutions/Agencies Then there are the institutions - to operate those rules (the executive), and to change those rules as and when required in a dynamic w o r l d (the legislature), and to a d j u d i c a t e (the j u d i c i a r y ) . Thus w e have the Government, the Parliament and the Courts, at the Central, State and Panchayat levels, besides which there are institutions operating exclusively in the water sector e.g. the Water Disputes Tribunals, WUAs, Water Resource Regulators in some States. The objective of this entire process of governance - the rules and the institutions - is to bring about efficiency, equity and sustainability of resources. 3.3 Efficiency Efficiency or productivity is the quantum of output per unit of resource. In the irrigation sector, it w o u l d mean more crop per drop and no wastage/over use. 3.4 Equity Equity in allocation of natural resources means that the benefits of using them are distributed fairly. In an operational and restricted (human rights) sense, it

Institutions In the backdrop of the above, let us see what is the position in the ground water sector and what more needs to be done. 4.1 Technical Issues for Governance The major development of irrigation capacity in the private sector over the years, as indicated earlier, has been ground water based and a portion of the same has taken place t h r o u g h bank finance w h i c h was supported by NABARD refinance. NABARD used its position to promote efficiency, equity, sustainability and also to direct irrigation development in areas with a b u n d a n t g r o u n d w a t e r r e s o u r c e s , t h r o u g h its mandatory norhns of refinance that the banks have to follow for availing it. Some of these norms are given ahead. 4.1.1 Norms for NABARD refinance (A) Ground Water Availability The first requirement for judicious use of any resource is its accurate assessment to define availability on a sustainable basis. Unless we know the quantum of resource available, we will not be able to plan development strategy. In t h i s d i r e c t i o n , N A B A R D ( i n c l u d i n g previously, ARDC) alongwith CGWB and State G r o u n d Water Departments have played a critical role in initiating the g r o u n d water assessment, since 1972 (JK Jain Committee), 1979 ( O v e r - E x p l o i t a t i o n C o m m i t t e e ) , 1984 (Groundwater Estimation Committee/GEC-I), 1997 (GEC-II) & 2004(Hard Rock Committee). These methodologies were used to quantify the d y n a m i c resources. Currently, an R&D Advisory Committee of CGWB is working on the quantification of phreatic and confined a q u i f e r s . W e m a y have t o f u r t h e r t h i n k of establishing Aquifer Boards(an institution) on

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the lines of the River Boards for better aquiferw i s e a s s e s s m e n t , p l a n n i n g of u t i l i s a t i o n s t r a t e g y a n d m o n i t o r i n g t h e s t a g e of development for various aquifers. (B) Block categorisation As part of assessment, blocks were categorised using stage of ground water development and long term trend of g r o u n d water table, and this was i n t i m a t e d to the banks and State Governments for directing their finance. NABARD refinance f o r n e w g r o u n d w a t e r structures is available only for safe and semicritical blocks. All the Centrally Sponsored and State -Sector subsidy linked credit assistance for ground water development are governed by N A B A R D on t h e c a t e g o r i s a t i o n of assessment units. (C) Spacing norms To ensure that the extraction f r o m one well does not affect the adjacent one, m i n i m u m distance between t w o ground water extraction structures has been prescribed as spacing criteria, d e p e n d i n g on the hydrogeoiogical c h a r a c t e r i s t i c s of t h e area. T h i s is m a d e mandatory for various ground water abstraction structures based on detailed aquifer parameter tests and monitored on a continuous basis. (D) Quality of pumpsets/Energy Efficiency Based on 'Pilot project studies f o r quality control of agricultural pumpsets' taken up in 18 States, t w o publications have been brought out, spelling out a matrix for selection of lifting devices for ground water abstraction, depending on crop water requirement and total head for irrigating the designed c o m m a n d area from various ground water abstraction structures (DW, STW, TW, BW, etc.). Further, the matrix details have been taken up with Bureau of Indian Standards (BIS) and IS 10804 -1994 for'complete pumping system (CPS) for q u a l i t y c o n t r o l of a g r i . p u m p s e t s ' w a s formulated for selection, installation, operation and quality control of agricultural pumpsets f o r o p t i m u m e f f i c i e n c y . CPS w a s m a d e mandatory for NABARD refinance for p u m p s e t s f i n a n c i n g by banks. Necessary certification f r o m authorised manufacturers/ dealers have been made mandatory including certification f r o m the financing banks.However, the ground reality is that the guidelines are (E)

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often ignored. Inefficient lifting devices like air compessors, piston pumps, which even resort to surging of water, are also being used widely. This leads to over-exploitation of the aquifer and also disturbs their hydraulic efficiency. The main reason for the above is that energy is almost free for agricultural operations. Hence, there is no incentive for farmers to bother about energy efficiency. A scheme formulated by N A B A R D f o r r e c t i f i c a t i o n of a g r i c u l t u r a l p u m p s e t s has also n o t b e e n s u c c e s s f u l b e c a u s e of t h i s . T h i s is a v e r y s e r i o u s governance issue.The way out is subsidising energy-efficiency (by giving grant for more efficient p u m p s and systems improvement) and, removing subsidies on energy (i.e., power charges to be increased). In such a case, the farmer's payout for electricity may still remain the same, on account of decreased energy c o n s u m p t i o n . T h u s , p o w e r r e f o r m s can f a c i l i t a t e w a t e r r e f o r m s . A n o t h e r issue pertaining to the quality of lifting devices is the use of imported low-cost pumps with very high specific speed and high specific fuel consumption. NABARD is taking up the issue w i t h BIS f o r t h e i r s t a n d a r d i s a t i o n a n d certification. Such large-scale use of pumps of this type mainly imported from China, has been mainly reported in Eastern and North Eastern States. Crop Water Based Design Crop w a t e r r e q u i r e m e n t based d e s i g n of structures and lifting devices are promoted by NABARD for various hydrogeoiogical units for the peak requirement period (rabi crop) to e n s u r e s u s t a i n a b i l i t y and f i n a n c i n g banks advised of various crop commands feasible. (F) Information Dissemination As indicated earlier, optimisation matrix was p r e s c r i b e d f o r s e l e c t i o n of a g r i c u l t u r a l pumpsets based on design discharge, total head and pipe diameter(mandated velocity of f l o w to bring friction losses within 10% of the overall length of piping system). State Level Technical Committees have been constituted under Agricultural Production Commissioners in the states to short list t y p e , brand and a v e r a g e costs of e f f i c i e n t lifting d e v i c e s , essential accessories and protective devices covered under IS-10804-94.The above rules/ prescriptions were created in the past to direct the f l o w of credit appropriately. However,

SSUE 10, 2007 For Private circulation only,,

TECHNICAL DIGEST
(C) Cropping pattern A cropping pattern appropriate for the available water resources in the area may be suggested and public awareness created for its adoption by the extension wing of the State Agricultural Departments, Krishi Vigyan Kendras and ICAR I n s t i t u t e s as an i n d i r e c t g o v e r n a n c e f o r conservation and management. IP) Integrated Water Resource IVIanagement (IWRIVI) IWRM planning including conjuctive use may be incorporated in the development plan of all c o m p l e t e d surface irrigation projects under participatory irrigation management(PIM) as a governance strategy for equitable distribution and w a r d i n g off against water-logging and salinisation in c o m m a n d areas. (E) Coastal aquifers As per the existing regulations, only single phase pumping structures are permitted within a narrow belt f r o m the coastlines for domestic use, and p u m p e d irrigation f r o m ground water is restricted for a distance of 2 km. and 10 km. respectively f r o m the coastline in West and East Coast. However, sea water intake structures have been created of late in the coastal areas upto a distance of 5 kms. f r o m coastline which leads to l a n d - w a r d salt water i n g r e s s i o n . Regulation needs to be strengthened to take care of the situation. 4.3 Economic Aspects of Governance 4.3.1 Property Rights

nowadays banks are financing the structures out of their o w n resources, or the farmer has b e e n self f i n a n c i n g s i n c e l o n g , o f t e n d i s r e g a r d i n g t h e s e n o r m s , r e s u l t i n g in a substantially ungoverned and subsequently overexploited ground water sector. The above situation surely calls for making these norms a part of the State Legislations for better compliance.

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4.2 Other Technicallssues T h e r e are certain w i s e s t r a t e g i e s / t e c h n i c a l best practices being p r o m o t e d in a big way these days. These have not yet become laws, and are similar to the Directive Principles of State Policy of the Indian C o n s t i t u t i o n in the sense that t h e y are desirable prescriptions but, cannot be enforced through a Court of Law, although there have been cases of healthy judicial activism of late which have been supportive of such causes. It is suggested that some of these may have to be brought to the realm of governance, i.e., rules/laws/legislations may have to be formulated, to give them greater force for compliance. (A) Micro Irrigation Drip and sprinkler irrigation systems besides effecting water conservation and management, also e n h a n c e t h e c r o p p r o d u c t i v i t y a n d therefore, may be made mandatory in ground water scarce (over-explioted/critical) blocks, or for water intensive crops like sugarcane in all areas. Quality control as per criteria laid by Bureau of Indian Standards(BIS) have been made mandatory for credit assistance.Further, a variety of low cost innovative micro irrigation systems are being widely used by the farmers, for which the issues of quality standards and c e r t i f i c a t i o n s y s t e m s need t o be s e t t l e d . NABARD is taking up the issue with BIS, as this will promote water conservation and management and make it affordable to even small and marginal farmers. (8) Rain Water Harvesting/Artificial Recharge In v i e w of t h e d e p l e t i o n of g r o u n d w a t e r resources and c o n t i n u o u s decline of water levels, water harvesting techniques feasible for various physiographic and hydrogeological regimes has to be an integral part of the management practices in critical and overexploited areas.

Scarce resources become economic resources and ground water in India has been increasingly becoming s c a r c e . P r o p e r t y r i g h t s are i n t e g r a l t o h o w t h e economic resources are governed. Market systems based on property rights combined with competitive voluntary exchange are widely believed to bring about efficiency of the resource use. These rights are classified into four broad management systems called property regimes, that allow us to expect certain kind of behaviour f r o m other members of the society about their rights and duties pertaining to the resource and smoothen their use and exchange. These four regimes are private property, state property, c o m m o n property and open access (or, nobody's) property.Ground water is generally regarded to be in the open access regime, i.e., anybody can extract as much water as he wants from the ground below, i.e., unlimited rights and no rules. This situation is believed to be one of the major reasons for over-exploitation of resource, i.e., the

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4.3.3 Financial Incentives

tragedy of tiie c o m m o n s starts operating. This has to be set right, i.e., the property regime has to be changed f r o m o p e n access t o c o m m u n i t y / s t a t e , if not t o complete private property regime. This w o u l d require a legislation by the state. A suggestion to be debated in this regard is for creating a s y s t e m of e n t i t l e m e n t s . Firstly, t h e r e can be a M i n i m u m Entitlement of a certain quantum of water for all citizens, mainly for domestic use (based on the h u m a n r i g h t s c o n c e p t ) . T h i s w o u l d be available irrespective of land ownership, and it w o u l d be the duty of the State to make it available to all citizens at nominal cost/free. Beyond this M i n i m u m Entitlement, some Additional Entitlement (in the sense of private water rights) may be given to the existing/traditional users of water as per their current usage and frozen at that level. Both these entitlements should be tradeable in the market. Beyond the entitlements, all the water w o u l d be owned by the state and auctioned in large numbers of smaller aquifer blocks/modules to private highest bidders for a specified leased period as done in the case of awarding of oil-field contracts. It is hoped that the market trading of entitlements and private sector c o m p e t i t i o n w o u l d b r i n g in efficiency. The equity w o u l d be taken care of b y the entitlements and sustainability, by state/community ownership and a regulator (an institution). 4.3.2 Water pricing

A n o t h e r e c o n o m i c approach-an alternative to the property rights approach indicated earlier, specially in the area of pollution abatement, is the system of taxes/ subsidies and marketable permits (analogous to the Clean D e v e l o p m e n t M e c h a n i s m s ) . S o m e of these systems are already in place e.g. subsidy for clean and c o n s e r v i n g t e c h n o l o g i e s (e.g. m i c r o irrigation).A suggestion in this direction is to put in place higher taxes for higher HP submersible pumpsets which are responsible for g r o u n d water depletion in a big way. O v e r a l l , an a p p r o p r i a t e c o m b i n a t i o n of all t h e approaches outlined above- regulatory, as well as market-oriented(property rights, and incentives),may work best and w o u l d be more practical to implement. 4.4 Other Economic Issues Besides the foregoing, the following miscellaneous issues also require attention for governance. (A) Insurance for Well failures Lot of well failures take place in hard rock areas putting the farmers to debt trap in the absence of insurance facilities. Financial incentives, in the shape of higher insurance p r e m i u m , budgetary support may have to be put in place to attract the insurance companies and banks to offer services in this area. The failed well c o m p e n s a t i o n s c h e m e w i t h 50:50 percent Central and State Government contribution for failed wells, has been dispensed with for more than a decade. (B) Reuse of treated water Large scale reuse of treated water from urban and semi-urban sewage and industrial effluents m a y be p r o m o t e d f o r i r r i g a t i o n as per appropriate quality standards, alongwith financial incentives, and pricing for suitable c r o p s as p r a c t i c e d w i d e l y in d e v e l o p e d countries to govern scarcity areas. Sum Up

Pricing depends on the kind of property regime in force. It is suggested that after putting in place the property regime as suggested above, all water may be allowed to be priced by their owners as per the play of free market forces of d e m a n d and supply. Currently, some small ground water markets do exist in Western (Gujarat, Maharashtra) and Eastern (Bihar/ West Bengal) regions. The above system of governance looks a bit elaborate and cumbersome, involving elements of human rights, as well as private and state property regimes. But this is understandable in view of the fact that water is a basic human need, besides being a scarce economic g o o d . The new system may have substantial transaction costs and putting in place an institutional framework for the same also may be difficult. But, w e have to also realise that merely the existence of a set of laws, even with tardy implementation, acts as a deterrent for abuse and as a promoter of wise acts; it is better than no laws as is the case now. A pilot project experiment may be taken up establishing the property regime as indicated above and future policy may be decided on the basis of the learnings.

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5.

This p a p e r has s u g g e s t e d c e r t a i n e x p e r i m e n t a l changes in the rules (technical and economic) and institutions governing the g r o u n d water use in the country. Comprehensive institutional mechanism and regulations a l o n g w i t h market-oriented approaches w o u l d have to be put in place by the Central and State Governments for governance of ground water use in the country to ensure equitable and sustainable water availability for future domestic, agricultural and industrial uses.