INDIAN REFORM INITIATIVES

IN
WATER SECTOR

Keynote Address
by
M. Venkaiah Naidu
Minister for Rural Development
Government of India

MAY 6, 2002

at

WATER FORUM 2002

World Bank
Washington DC
 INDIAN REFORM INITIATIVES
IN
WATER SECTOR
I feel honoured to participate and address this august gathering of water sector
professionals and practitioners, and the World Bank executives. A few weeks back on
the 22nd of March 2002 all over the world we celebrated the 10th anniversary of
the World Water Day with the theme of ‘Water for Development’. Lot of water has
flowed since the Rio Declaration. The Agenda-21 of the Declaration called for
action to protect the quality and supply of fresh water resources for socio-economic
activities. During September 2002, many of us will meet at Johannesburg for the World
Summit on Sustainable Development which will take stock of development issues
including those of drinking water. In the journey from Rio to Johannesburg, water
has moved to the centre-stage in the development oriented deliberations. Water is so
important for sustenance of life and environment conservation that the United Nations
General Assembly has declared Year 2003 the ‘International Year of Fresh Water’.

GLOBAL SETTING
The challenge in water and sanitation is indeed a challenge of monumental proportion.
The figures are well known to all of you: globally over a billion people still lack access
to safe and reliable water sources; another 2.4 billion do not have proper sanitation
services, and more than 5 million people die each year from water related diseases1.
Though access to improved water supply and sanitation facilities has been increasing,
it is just sufficient to keep pace with population growth.

In the year 2000, global water supply coverage was 82 percent but sanitation
coverage was at 60 percent. There is clear rural-urban divide. Urban water supply
coverage was at 94 percent whereas rural water supply coverage stood at 71 percent.
In case of sanitation, such rural-urban division is more prominent - Urban sanitation
coverage was 86 percent whereas rural sanitation access was only 38 percent2. Amongst
the regions, majority of people living in Africa, Asia, Latin America and the Caribbean
do not get served with potable water and proper sanitation. These regions clearly
reflect problems of poverty and lack of proper hygiene. If measures of reliability of
services and sustainability of natural resources could easily be captured in numbers
then the figures would surely be even more damaging.

It is clear that given the importance of water resources and service delivery to economic
growth and poverty alleviation, we cannot wait any longer before finally resolving the
challenges in water and sanitation.
1&2
Global Water Supply and Sanitation Assessment 2000 Report. (2000) WHO and UNICEF
- Vision 21, A Shared Vision for Hygiene, Sanitation and Water Supply - by Water Supply and Sanitation Collaborative Council. 1
 The sector is characterized by serious under-performance, and this crisis will continue sector participation, serving a geographical area that includes both rural and urban
unless there is a fundamental reform of service arrangements. Consensus is growing customers to improve financial and physical efficiencies. On the rural side, we find
on the principles of successful approaches, and many local success stories have been that local government-led and community-based models of delivery of rural public
identified. However, these successes are not being replicated on a large scale in the services are providing sustainable solutions.
countries where they have been implemented, nor are they transferred sufficiently to
While the need for additional financial resources has traditionally been stressed, the
other countries or regions.
emphasis is now to be shifted to conducting mass media campaign to create
These problems are compounded on account of increasing water resource constraints, awareness about the need and benefit of reforms amongst the opinion makers and
population pressures, higher service expectations, and environmental challenges, development practitioners. There is an increasing awareness of the need to strengthen
besides lack of political commitment, lack of sector coordination, lack of community technical and managerial capacity of different tiers of local governments and the
involvement, inadequate finances, unskilled human resources and poor operation and communities for implementing different and diverse models of service delivery.
maintenance.
As all of you are well aware, there are a number of examples in the developing world
Inadequate coverage, poor quality, as well as unreliable and unsustainable supply of of the principles that I have mentioned earlier. I will now focus on where India stands
water have an adverse impact on the socio-economic development in the developing in water and sanitation sector and what are our recent reform initiatives in the water
countries. WHO has estimated that water related diseases contribute to nearly sector.
1.8 million child deaths each year globally3. Millions of people all over the world,
mostly in the developing countries, have been suffering from water related illness. INDIAN SCENARIO
Though inadequate provision of water supply due to resource constraints may play a Under the Indian Constitution, and in our federal democratic set up drinking water
part, the major reason for this dismal situation is the misdirected emphasis on investing comes within the domain of the State Governments (Provincial Governments). In
in physical infrastructure without ascertaining its utility or ensuring its maintenance fact, the 73rd Constitutional Amendment has gone a step forward. It mandates that
and sustainability. As a result, the desired impact on the socio-economic development, responsibility for drinking water and sanitation services should be with Local
health status and physical quality of life of the targeted population has not been fully Governments. Various States in India are at different stages of giving effect to this
realised. Constitutional mandate. The Sector Reform Project and Total Sanitation Campaign
It is becoming increasingly evident that national governments alone, even with the Programme of my Ministry and the World Bank funded Rural Water Supply and
assistance of international organizations, will not be able to provide the necessary Environmental Sanitation projects, which I will discuss in some detail later, are helping
expansion of quality services to a growing population. The role of governments has States to move in this direction. The Central Government endeavors to supplement
to shift from service provider to that of a facilitator for providing financial and the efforts of the States by providing financial and policy support.
policy support to the communities and their institutions for fulfilling the desired In order to provide safe drinking water in the rural areas we have set the norm of 40
levels of services on a sustainable and equitable basis. liters per capita per day (lpcd) and additional 30 lpcd is taken for animals in hot and
The private sector is also becoming an increasingly important player in the cold desert eco-systems. Further, drinking water source for 250 persons in a habitation
management of existing utilities. The potential for increased private participation is is provided. Access to drinking water in the rural areas is determined in terms of
considerable, particularly for the management of service delivery in the urban areas, distance - a source should exist within 1.6 kms of the habitation in plains or 100
even in developing countries. Suitably designed contracts and service delivery metres elevation in hilly areas. Taking into account these norms, the current level of
arrangements can ensure better focus even for the urban poor. However, private coverage of drinking water supply to the 1.4 million habitations in India is: 89 percent
sector participation in the extension of services to the poor in rural areas might be ‘fully covered’, 10 percent ‘partially covered’ and 1 per cent ‘not covered’.
somewhat more difficult, though there is scope for restructuring of the centralised Despite the impressive coverage of provision of safe drinking water facilities in the
water sector institutions and sector managerial capacity for the larger regional rural areas, there is a great deal of concern about both the quality and sustainability.
schemes. There is also scope for the restructuring of regional utilities, with private The Accelerated Rural Water Supply Programme (ARWSP)4 was earlier totally
4
3
Workd Health Report 1999 published by World Health Organization - Geneva. “Guidelines on Accelerated Rural Water Supply Programme” (2000), Department of Drinking Water Supply,
Ministry of Rural Development, Government of India.
2 3
 Government run without the participation of stakeholders. This has created a scenario, solid waste disposal and personal and domestic hygiene. About 20 percent of rural
in which users consider water a free (service) commodity with the Government having Indians have access to some form of latrine (and surveys have shown that many of these
the entire responsibility for running the operation. This has stifled the development latrines are not used for the purposes they were designed), but perhaps more critical are
of more efficient, low cost options for service delivery and denied users as consumers the poor hygiene practices common in much of the country and the region. Although
the opportunity to demand better services. the concept of sanitation has undergone a qualitative change over the past few years, we
have made very little real progress in improving the sanitary conditions in the villages of
The Government of India envisages provision of safe drinking water to all its rural
India.
habitations by 2004. In spite of good coverage, people are not fully satisfied with the
available service. There are systems falling into disrepair due to poor maintenance, Since the beginning of the Sixth Five Year Plan (1980-85) and the launch of the
water shortages in summer months sources drying up mainly due to depletion of International Drinking Water Supply and Sanitation Decade (1981-90), India has
ground water level; increasing incidence of water quality problems, damages due to increased its commitment to the water supply and sanitation sector. Sector investments
recurring floods and droughts or other natural calamities and increasing aspirations. have increased and presently constitute a significant proportion of the national budget
(about 3 percent of which 50 percent is allocated to rural areas and the rest to urban
With the rapid population growth water is becoming an increasingly scarce resource
areas). Government of India formulates policies, sets standards and provides technical
in the country. The provision of extensive irrigation infrastructure over the past decades
as well as substantial financial assistance to the States. Central Government funding
is one of India’s major achievements. However, unregulated and overexploited
constitutes about 40 percent of the total investment in the sector. The remainder is
ground water extraction has resulted in groundwater depletion and the resultant
provided by the States. About 5 percent of the sector investment comes from External
decline in water quality. In India, we have water quality problems in about 217211
Support Agencies. Since independence, Central and State Governments have
habitations. Excess fluoride, arsenic, nitrate, iron and salinity are causing health hazards
collectively spent more than Rs.360 billion (US$ 7.5 billion) for rural drinking
for large number of people. We have, however, eradicated fully Guineworm
water sector. However, much more remains to be invested. We have planned to
infestation in India5. Further, we have launched programmes on mission mode to
utilise about Rs.280 billion (US$ 5.83 billion) during 10th Five Year Plan
mitigate these water quality problems. Despite substantial investments, water quality
Period (2002-07)6.
problem continues in the country. This situation will only worsen as demand increases.
Inter-sectoral allocations, planning and management of this fragile resource has become
one of the major issues for the sector.
PARTNERSHIP WITH THE WORLD BANK
The Government of India and the World Bank partnership over the past decade has
Box 1: Strategy for tackling water quality made impressive progress in developing and implementing innovative strategies to
improve the Rural Water Supply and Sanitation sector. These accept the global
The Govt. of India has embarked on a five-pronged strategy to mitigate
consensus that “management at the lowest appropriate level” is an important pre-
poor quality of drinking water:
requisite for sustainability. The strategy has changed from the top-down, fully
• Treatment systems for the household or community
Government implemented approach in Maharashtra to a community participation
• Alternative problem-free zones in groundwater; approach in Karnataka through a “demand responsive approach in partnership
• Mini piped water supply that use deep aquifers; with NGOs and user groups” in Uttar Pradesh, and finally to “community driven
• Regional piped water supply using mainly surface water; development” in Kerala and Karnataka. The successive projects show the evolution
• Dual mode of water supply that provides potable water for drinking and of the key strategies needed to improve sustainability. The Bank-assisted Rural Water
cooking purposes alone Supply and Sanitation project [popularly known as Swajal (pure water)] in Uttar
Pradesh has been acknowledged nationally and internationally as the best practice
Rural sanitation remains one of the biggest development challenges in India and, indeed, example in implementing a demand responsive approach. Similarly, the participatory
globally in much of the developing world. A radical shift in approach is needed in order evaluation methods of sustainability monitoring using the village immersion process
to reach the Millennium Development Goals. We define sanitation as a package of: safe that was pioneered in Karnataka has become an integral part of the country’s
handling of drinking water, disposal of waste water, safe disposal of human excreta, implementation supervision.
5 6
WHO notified India free of Guineaworm in February 2000. Government of India has already committed forRs.135 billion (US$ 2.81 billion) investment for the next 5 years
and balance expected to come from the State Governments and External Funding / Supporting Agencies
4 5
 In 1998, India, with the Bank’s support, developed a national sector strategy for We adopt the following principles to allocate sector reform funds to States: (I) the
Rural Water Supply and Sanitation that was widely discussed with the States and the adoption of a demand-driven approach and empowerment of villagers; (ii) a focus
External Support Agencies. This strategy extensively drew upon the successes of these on village level capacity building; (iii) the maintenance of an integrated approach to
projects. India is now not only committed to institutionalise a demand-driven, water supply, sanitation and hygiene promotion; (iv) a requirement for partial capital
community-based approach for rural water supply across the country, but also cost recovery and full operations and maintenance (O&M) financing by users;
implementing in 64 districts of 26 States. The Bank and the Government of India and (v) the promotion of groundwater conservation, rainwater harvesting.
have agreed on a generic project/programme design, that incorporates the same Central and State Governments come together to address the priorities of (i) supporting
Government of India basic reform principles. We are confident that in future, World effective and inclusive decentralisation by empowering local communities in rural
Bank’s funding will look at the issue of scaling up, supporting institutional change of areas; (ii) building and implementing consensus on key policy and institutional
the traditional agencies, and financing of the local government and community reforms; (iii) funding investments in rural infrastructure linked to reforms in service
partnership. As these Bank financed projects innovate so can Government of India delivery; (iv) using NGOs and alternative service providers; (v) promoting cost
Projects. recovery; (vi) targeting the poorest and most vulnerable groups; and (vii) integrating
India has enjoyed a long history of support from the Bank in a multitude of Water allied interventions for maximum impact.
Resource Management initiatives. Success in participatory irrigation management
focusing on watersheds and other water management projects have been the harbinger Box 2: Decentralized drinking water and sanitation programme
to many innovative irrigation management initiatives in India. In order to improve the sustainability of resources and systems, Government
of India has embarked on an ambitious program of demand-responsive
We have also forged an important partnership with the Water and Sanitation Program- delivery of water and sanitation. The central principles of the programmes
South Asia (WSP-SA) through a formal Strategic Alliance. The WSP is a Bank are:
executed programme funded by several External Support Agencies including DFID, • Community and Local Government to plan, implement, operate and
SIDA, SDC, and Dutch Aid/WSP-SA is playing a pivotal role for capacity support in manage Water Supply Schemes;
the implementation and innovation of the programme. I must add that having access • Shift State Government from the role of services Provider to Facilitator;
to the supporting hands of the Bank and its Agencies, Water Sector will have desired • Empowering of the Gram Panchayats and User Groups;
development. • The participation of communities in their own Water Supply and Sanitation
systems;
• Design systems based on the willingness of consumers to pay for particular
REFORM INITIATIVES IN INDIA levels of service: a portion of the capital cost and all future recurrent
costs
Rural Drinking Water The program is currently being increased from 64 to 75 districts for water
On the rural side, we have already embarked on a very bold sector reform programme supply, and from 163 to 250 districts for sanitation that commit to the
and are in the process of implementing what is probably the world’s largest Central reform principles.
Government supported rural drinking water and sanitation programme based
on demand-responsive principles. Reform primarily aims at the empowerment of Under this programme, we have allowed communities and local institutions a
the village community and their institution and as well as emphases the inclusion of considerable degree of flexibility in choosing the appropriate institutional model for
women, socially disadvantaged and poor sections of the society. NGOs and CBOs service delivery suited to their own specific local context. By introducing this
play prominent catalytic role to provide capacity support to the people, community programme, we have challenged the traditional top-down model of delivery of water
and local Governments. supply services by State Government owned Engineering Departments and Agencies.
Our experience has shown that delivery by agencies that are far away from users leads
The programme is based on the subsidiarity principle, and recognizes that services sometimes to the creation of unsustainable schemes that are, more often than not,
should be delivered by the lowest appropriate level. The responsibility for the delivery unsuited to meeting the requirements of those whom they are designed to serve and,
of water and sanitation services vests with the local Governments. therefore, unsustainable.

6 7
 Under the programme we hope to achieve environmental, institutional and financial Further, local government responsibility for delivery does not necessarily translate
sustainability. The programme draws its lineage from the World Bank’s Swajal, into delivery by local government agencies. In fact the local government, in
Karnataka and other rural water and sanitation projects of the mid- to late-1990s. We consultation with the community can choose the appropriate agency responsible for
have (as has the World Bank), also allowed the natural progression from the earlier delivery - this could be the community itself, or a cooperative or public institution
Project Management Unit(PMU)-supported models of delivery to those that are or, indeed, the private sector as the agent of delivery. The programme allows for all
more directly rooted in local government institutions. These earlier models had of these possibilities. The ultimate model chosen will depend on the local circumstances,
effectively demonstrated that the traditional top-down approach could be replaced the viability of the operation, the nature of the scheme (single- or multi-village) and
with a better and more sustainable alternative which is better suited and responsive to the availability of alternatives.
user needs. The principle that users’ pay for services will ensure financial sustainability.
From the national perspective, the success of the water sector reform has implications
Peoples’ voice and choice to adopt technological options acceptable to them,
for all round rural development and goes well beyond the water sector. If through
affordable by them and adaptable for them brings in sustainability
the water sector reform programme we can create robust institutions for good
This programme has so far sanctioned Rs.19.40 billion (US$ 400 million) of local governance, these can be effectively used for the delivery of a host of other
Government of India budgeted resources - with no external assistance involved - for local public services which will have a positive impact on rural development for
64 districts spread across 26 States covering a population of over 70 million. The poverty reduction. As the Minster for Rural Development for the Government of
US$400 million provided for the program is by no means a cap - we are committed India, I have the responsibility to facilitate local government delivery of a number of
to providing funds under the reform mode so long as there is a demand for these important rural services. The Ministry also has the responsibility for creating Panchayat
funds, and projects are on right path. We are also committed to scale up the programme Raj Institutions (PRIs) of effective and good rural self-governance that could take on
slowly but steadily beyond the initial pilot districts. the responsibility for the delivery of all rural services including water supply,
education, health, rural roads, electricity etc. I am pleased to inform you that the
Government of India has recognised the need to improve the functionality and
recent generation of World Bank assisted rural water supply and sanitation
sustainability of the sector and for the Sector Seforms Projects (SRP). We have this year
projects and also the Government of India Sector Reforms Project and Total
reserved 20 percent of the Central funds allocated for rural water supply, about Rs.3.84
Sanitation Campaign Programmes are proving to be effective vehicles of
billion (US$80 million) annually to States implementing reforms in the sector.
strengthening decentralisation in the country.

Box 3: Fact Sheet on Sector reforms Projects for Water Supply Rural Sanitation
• Launched in April 1999; Government policy with regard to rural sanitation has undergone a major shift over
• Operated in 64 Districts; the past few years. It has moved away from providing state-level subsidy based on
• Being expanded to 75 Districts; need towards a more demand-based strategy. The need for targeted awareness creation
• Rs. 19.40 billion (US$ 400 million) Project Outlay; has been recognised as the way to motivate villagers to improve their sanitary
• Rs. 5.63 billion (US$ 117.3 million) released; conditions. My Ministry is currently engaged in the innovative ways of igniting demand
• Popuation being covered – 70 million for sanitation through behavioural change while appropriately directing subsidies to
supplement community efforts.
I believe that the often stated dichotomy between community approaches and local
government approaches is, essentially, artificial. No one can dispute that our common Under Sector Reform process Total Sanitation Campaign(TSC)7 has been initiated
goal is good local governance and that this results from a combination of empowered since April, 1999. Total Sanitation Campaign Programme is community led and people
communities and efficient and accountable local governments that are responsive to centred. The components of the Total Sanitation Campaign are - construction of
their constituents. Therefore, Government of India and States are now promoting household latrines, construction of sanitary complex for women, toilets for schools,
the concept of setting up the Village Water Supply and Sanitation Committee toilets for Balwadi/Anganwadi etc. Besides, Information, Education and
(VWSC) as a Committee of the Local Government. This enables drawing of Communication is fully supported. The main features of he Total Sanitation Campaign
comparative advantage of Committees and ensures long term institutional sustainability.
7
“The Guidelines of Central Rural Sanitation Programme.” (2001) Department of Drinking Water Supply,
8 Ministry of Rural Development, Government of India. 9
 are (i) shift from high subsidy to low-subsidy regime - from Rs.2000/- to Rs.500/-
per latrines, (ii) greater household involvement and participation, (iii) technology Box 5: Using competition to motivate villages to
options as per choice of the households, (iv) stress on Information, Education and improve their sanitary conditions
Communication (IEC) as part of the Campaign, (v) emphasis on School Sanitation, The Gadge Baba Scheme8 in Maharashtra has shown remarkable success in
(vi) linkages with various rural development programmes, (vi) involvement of NGOs improving the sanitary conditions of rural villages. The State Government holds
and CBOs and local groups, and (viii) promoting access to the institutional finance. an annual competition that awards cash prizes to villages that perform well on
a range of sanitation indicators: latrine coverage, hygiene practices, solid waste
The Total Sanitation Campaign has been launched in 163 districts with the total disposal, village cleanliness, etc.
outlay of Rs.19.52 billions (US$ 417 million) for the construction of 16.5 million
individual household latrines, 163 thousand latrines for schools and other
environmental sanitation works.
URBAN WATER AND SANITATION
The prevailing conditions and trends in Urban India indicates that 85 percent of
population in general have access to safe water supply, which is even less (65 percent)
Box 4: Fact Sheet on Total Sanitation Campaign
in slums; and 49 percent of urban population have toilet facilities.9
• Launched in April 1999
• Operated in 111 Districts On the urban side too, it is now well recognized that the problem is more
• Sanctioned for 163 Districts institutional than technical. Till recently, there was no fiscal instrument available
• Being scaled up to 250 Districts with the central government which could be used to influence states and cities to
• Rs.19.52 billion (US$ 417 millions) Project Outlay reform their urban water and services. The reforms in Urban Water Supply Services
• Rs.2.51billion (US$ 58.5 millions) released are in their infancy. Urban Water and Sanitation Services are characterized by
• 16.5 million individual household toilets inefficiency and poor service quality. So far we are not providing 24 hour quality
• 163,768 school toilets water supply in any Indian city. In fact most cities are having intermittent water supply
• 19,910 sanitary complex for women of varying periodicity and quantity. Some well to do families make private investments
• 1,549 Production Centres and Sanitary Marts to augment quantity and improve quality for their families. Clearly these solutions
are far from optimal and costly with heavy impacts on groundwater and water quality.
The poor, of course, are the most hard hit by this state of affairs. Poverty gets
The impact of inadequate water and sanitation services on public health is well known
compounded with water poverty.
and understood to be one of the major causes of morbidity and mortality in developing
countries. However, the impact of improved hygiene is believed to have an equal However, on a more positive note, I am happy to inform that it is now being
impact as in case of provision of potable water or excreta disposal. Diarrhoeal diseases increasingly realised that creation of the right institutions for the delivery of Urban
kill about 2 million children every year, but it is believed that handwashing with soap Water Supply Services is essential. It is also understood that the key to better services
alone could reduce these diseases by half. The global Public-Private Partnership is through improved management and correct pricing. These institutional changes
initiative of the World Bank to promote handwashing was launched on a pilot should precede any investments in augmentation. My own assessment is that with the
scale in Kerala State of India in the beginning of 2001. Since the results are emerging trend of urbanization and with it the growing political momentum, will
encouraging the Government of India is considering to scale up this innovative public- ultimately enable the empowerment of Urban Local Governments. Once the process
private partnership to promote handwashing throughout Kerala State. Through the of empowerment picks up India is would be well on its way of changing the status of
programme we hope to harness the creative and marketing skills of the private sector urban water sector. Again, to repeat my point made earlier, the future of urban water
to trigger behaviour change that addresses our socio-economic objectives. is well linked to the economic and institutional reform of urban local government.

Government of India in this year’s budget has announced the creation of a City
Challenge Fund10 for assisting the State Governments and the Urban Local Bodies

8
For details see February 2002 issue of Jalavani.
9
Shelter - VOL.5 NOI January 2002 Special Issue on Water and Sanitation - HUDCO - HSMI Publication.
10
10 Budget of Government of India for the year 2002-03. 11
 in the economic reform, with the water and sanitation reforms forming a core of the Availability and Need of Water in India for various uses. (Billion Cubic Meters)
approach. You will be interested in knowing that in proposing the City Challenge
Fund, we have drawn ideas from the experience of South Africa’s Local funding Use 1990 2000 2010 2025
Programme. Domestic 32 42 56 73
Irrigation 437 541 688 910
Box 6: India’s National Water Policy Industry NA 8 12 23
The National Water Policy that is currently being revised stipulates water Energy NA 2 5 15
allocation priorities broadly in the following order: Drinking Water; Other 33 41 52 72
Irrigation, Hydro-power, Navigation, Industrial and other uses
502 634 813 1093
The policy stipulates progressive new approaches to water management.
Key feature include: In case of Water Resources Management let me highlight that the intersectoral issues
• Irrigation and multi-purpose projects should invariably include drinking are becoming increasingly important in order to improve the efficiency of Governments
water component, wherever there is no alternative source of drinking expenditure, particularly in irrigation and drinking water supply. All competing water
water. users: irrigation and drainage, industry, drinking water and others need to be regulated
• Providing drinking water to all human beings and animals should be the at the river basin level to ensure environmental sustainability. Mechanisms and improved
first priority. databases need to be developed to improved intersectoral planning, allocation and
development of water resources while considering particularly socio-environmental
• Measures to limit and regulate the exploitation of groundwater
peculiarities of each basin. Again, the issue of water pricing is critical to improve the
• Both surface and ground water should be regularly monitored for quality. efficiency of water use.
A phased programme should be undertaken for improving water quality.
• The efficiency of utilisation in all the diverse use of water should be Ensuring that the appropriate legal, regulatory and administrative framework is in
improved. place for a financially sustainable water sector is our current challenge. India has a
proud tradition of harvesting rainwater through various techniques from capturing
• Awareness of water as a scarce resource should be fostered.
water from the roof to more elaborate community structures. There is renewed interest
• Conser vation consciousness should be promoted through in reviving some of the age-old practices for sustaining the local water resources.
education,regulation, incentives and disincentives. Neeru Meeru (water and you) of Andhra Pradesh, Pani Roko Abhiyan (Campaign
for Water Stopping) in Madhya Pradesh, Rain Water Harvesting in Tamil Nadu,
States and Urban Local Bodies access funding through external commercial borrowing, revival of traditional water bodies in Rajasthan are some of the examples of new
and to a limited extent through institutional loans, but the privatisation of services initiatives taken in different parts of India. We in Government of India support
through BOT, and BOOT routes in few Municipalities have been attempted. Sulabh initiatives for water conservation watershed development, groundwater recharge and
International (an NGO) has successfully demonstrated the sanitation system at the rainwater harvesting.
community level and Commercial Centres on a pay and use mode.11

Water Resources
Guiding Principles
I have developed 4 cardinal principles on the basis of which we carry out all reforms
India’s total water requirement for various sectors has been rising and the future need
in the Ministry of Rural Development. They are:
will be more than the present availability.12
• awareness generation;
• transparency;
• community participation; and

11
• social auditing
“The State of the Indian Cities - 2000” - Published by HUDCO and UNCHS (Habitat) New Delhi
12
Report of 10th Five Year Plan (2002-07) Working Group on Water Related Ecological Matters (2002), Ministry of Water Resources, Government of India)
12 13
 WATER SECTOR ISSUES people about how water sources, services and systems must be owned, operated and
The fresh water crisis is already evident in many parts of the world, varying in managed (OOM) for ultimate sustainability.
scale and intensity at different times of the year. Many fresh water eco-systems
Existing institutions have to be restructured and strengthened for better service
are degrading. The crisis is the result of both natural factors and human actions.
delivery and resource sustainability. For too long, we have left the development
Failure of monsoon, desertification and recurring droughts bring water related miseries
and allocation of water sources to discretionary politics rather than using the power
to many. Further, uncontrolled extraction of groundwater for agriculture is driving
of politics to improve the institutions. There are many examples of such institutions
the ground water table deeper and deeper. The system of “water right” under common
based around watershed management, and river basin management. Such institutions
law of many countries gives the ownership of groundwater to the land owner, despite
at the source level must in turn be linked equally to sustainable institutions at the
the fact that groundwater is a shared resource from common pool aquifers. This
distribution level.
calls for international consensus among countries to adopt normative, regulated and
priced use of groundwater. We in India have designed a model law for the State It will be hard for me to leave without mentioning about the role of the private
Governments to legislate and implement. sector!! Yes, there is a critical role for the private sector whether this is represented by
community organizations, small water vendors, or by operators of water companies.
Besides the sustainability of sources, wide spread pollution of surface and groundwater
Here there is a non-ideological issue. Water can be managed through many forms of
is affecting the quality. Chemical contaminates like arsenic, fluoride, nitrate, iron and
public-private partnerships from management of contracts to concessions. But, it is
salinity are posing problems world over. How to mitigate these problems - can we
less likely that water can be privatized. The political dimension of water suggests
find any way out? There are technologies. Are they cost-effective? There are alternative
that a partnership mode of relationship between the public and private sector
sources for supply but at what cost? We can no longer show our blind eye to these
will be more efficient than one of a seller and buyer.
water quality related issues. Let us deliberate to answer these questions.

Managing water cannot be seen as a sector in isolation. It is embedded in the WAY FORWARD
functioning of Local Governments. If sustainability of water as a service and a resource
In implementing the bold new approach in drinking water and sanitation we are in
is to be achieved, then sustainability of Local Governments as an accountable tier
the mode of learning by doing In this context several important questions have emerged
of government has to be ensured. In an era of multi-tiered Governments, water must
which we hope that international experience - lessons from other countries - will
be seen in the context of the finances, institutions and processes that link the
provide some insights. The answers to these questions I consider, will be essential in
different tiers of government together.
ensuring the successful operationalisation of the water and sanitation sector reforms in
The importance of local governments in ensuring that we meet the water challenge India. These questions are equally applicable to the developing countries in Africa, Asia
suggests that community participation and community involvement in water and Latin America. Let me flag some questions for your deliberation in the Forum.
management is essential. We should not get caught in a debate about local governments
How do you manage transitions? Shifting from one set of existing institutional
or communities in our service delivery paradigms. It is not one or the other. Service
rules, practices and arrangements to the community led, participatory and demand-
delivery is a function of an effective relationship between local governments and the
responsive mode - from the supply driven to demand-driven approach in water sector
communities they represent. Institutions for service delivery including water services,
in the context of the political economy of countries is no small task. What have we
must take advantage of the complementarity between communities and their local
learned from countries that have undergone deep institutional change in which mind
governments if scaling up and sustainability are to be achieved.
shifts have taken place about managing a process of change? Perhaps, the World Bank
Water is a precious commodity for life itself. Because of its preciousness we must seek and other External Support Agencies and Institutions will need to place appropriate
to put a value to water. There are many mechanisms to ensure this: (i) ownership - emphasis on the process of change as they do on advocating change.
what people own, they are more willing to conserve and use better; (ii) regulation,
In a multi-tier system of government, how does one tier support and promote
whether you are regulating a private operator or just making sure that the public good
change in another tier? We are used to talking about un-bundling of services but we
is protected; and (iii) we must ensure that water is properly priced. All these three
are less used to talking about service delivery in Governments which should have
instruments jointly must be at the core of a process which catalyzes a mind shift in

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 been unbundled with constitutional rights and authorities to the Local Governments.
What are the lessons here?

To me a critical issue of the reform agenda in water sector is what are the vehicles
and processes through which local government capacity grows? It is clear that a
top down model of capacity building first and then followed by decentralization is an
old paradigm. Rather, capacity building must take place in the context of
decentralization - a more challenging task. In this context, how best to support and
nurture this synergy between capacity building and decentralization. The fate of the
water sector may well depend on how we answer this question.

What are the potential institutions for providing water and sanitation services
that fit into the systems of local governments and communities? We hear about
city utilities, regional utilities for small towns, independent service providers,
cooperatives, and much more. What is the potential of scaling up the creation of such
institutions in developing countries? How can we design these to fit into the local
government community paradigm? How can we support the capacity of Governments
to manage these institutions?

WATER FORUM
During these 3 days you will be discussing issues on drinking water and sanitation in
rural and urban areas, waste water treatment, drought proofing, benchmarking in
irrigation, water resources management, democratic decentralised local governments
role in the water sector, promotion of Public-Private Partnership and Private Sector
participation in irrigated agriculture and water management, and use of remote sensing
in water resources management with the ultimate objective of promoting poverty
reduction strategies in the developing countries. We would learn a lot from the
forthcoming deliberations.

We have come to this international forum to engage together to find solutions to

questions. I am confident that the deliberations in the coming days will seek to take
stock of the international experience and assist us in answering these questions -
atleast open up policies and principles that can enable us to innovate and search for
the answers jointly. As I mentioned earlier, we are in the “learning by doing” mode
and we see this forum as part of that process. Our collective experience is the necessary
ingredient for finally converting the challenge faced in water sector into opportunities.
Let us all work together globally to ensure a secured and sustained water future for
people locally.

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