Privatization of Water- Question of affordability.

Water Policy draft favours privatization of services and calls for abolition of subsidies to agricultural, domestic sector

The Union government has begun consultations on a new National Water Policy that calls for privatization of water-delivery services and suggests that water be priced so as to “fully recover” the costs of operation and administration of water-resources projects. Recently circulated to water experts for consultations, the 15-page draft National Water Policy suggests that the government withdraw from its role as a service provider in the water sector. Instead, it says, communities and the private sector should be encouraged to play this role. The proposals could mean sharp rises in the cost of water for both rural and urban users — an outcome the policy suggests will help curtail misuse of a precious but scarce resource. The draft policy calls for the abolition of all forms of water subsidies to the agricultural and domestic sectors, but says “subsidies and incentives” should be provided to private industry for recycling and reusing treated effluents. It also proposes that subsidy to agricultural electricity users be curtailed, saying it leads to a “wasteful use of both electricity and water.” (Source: The Hindu 21-01-2012)

Water privatization in India will make things worse for common men if we fail to learn from the nations where water is already privatized. Water privatization will invariably lead to price hikes because there are considerable costs involved in upgrading water harnessing, purification and distribution systems. The private companies will recover their costs and expenses by charging the consumer. Increased consumer fees for water can make safe water unaffordable for the impoverished and vulnerable populations. There is a threat of the unsustainable water mining by the private water corporations in an effort to maximize profits. Once water becomes a marketable commodity and a corporation is given sole rights to a body of water, then it is within corporations' rights to mine as much water as possible. Furthermore in an effort to maximize profits, if the corporation may mine an environmentally unsustainable amount of water and deplete the water body at a rate faster than it is replenished.

Water is synonymous with life. Water corporations through world bodies such as the World Bank and IMF, are influencing third world governments to push privatization and commoditization of water as ‘the chosen’ alternative to manage the growth in water consumption and the severe water scarcity. As the United Nations has recognized access to water as a basic human right, stating that water is a social and cultural good, not merely an economic commodity, public control of water is essential not only because water is necessary for survival and human fulfillment, but also because of the ever worsening water crisis that India is faced with. Water is a natural resource and every citizen deserves it and it is the duty of the government to ensure every citizen access to potable water. If the government thinks handing over it to private sector will bring in efficiency it must rethink about it. If the government implements privatization of water then it will be a betrayal to millions of common men.