States gear up to regulate water mkt
State governments are enacting laws to regulate the informal water market which is valued at Rs 5,000 cr.
By Shantanu Nandan Sharma, TNN |
NEW DELHI: More and more state governments are enacting laws to regulate the informal water market which is currently valued at around Rs 5,000 cr. If states succeed in getting any legislation passed, they could earn a revenue of at least Rs 500 cr per year.
Analysts believe that the informal water market is growing rapidly, and it may catch up with the Rs-8,000 cr organised market of bottled water soon. With groundwater getting limited day by day, the unorganised water market all over the country has grown. Big farmers or landowners install tube-wells with electric pumps and sell water mostly to marginal farmers for irrigation purposes.
The price varies from Rs 3 per hour in the Godavari basin to Rs 45 per hour in parts of Gujarat. The supply of water to tankers for domestic purposes fetches Rs 200 to Rs 250 per tanker, which goes up to Rs 400 during summer.
Though water is a state subject, rights over water is still not clear. Ashok Jaitly, an expert on water and rural energy told ET that there needed to be clarity on the issue before any legislation is done by the state. ���Different states are enacting laws on regulation of water use.
But the status of water rights is not very clear. The Constitution says, it���s a state subject. But does water belong to the state, to the community, or to individuals? In the case of minerals, it���s clear ��� it���s the property of the government. So, we first need to define who owns water?��� says Jaitly.
Already, the Maharashtra Water Resources Regulatory Act 2005, has imposed a regulation on sellers of water recently and has asked them to take the state���s permission for installing tube-wells. Karnataka has also enacted a law and put in place a regulatory mechanism. States like Rajasthan and Himachal Pradesh also have drafted similar legislation.
Water expert B G Verghese suggested that the Central government should encourage the states to have a sound regulatory mechanism. ���There is nothing wrong in selling water. A water seller invests in installing tube-wells and electric pumps, in addition to incurring operational costs.
So, it���s fine if he makes a profit. But state governments need to have some legislation to regulate the market. I feel, the Central government should encourage the states to do that,��� Verghese told ET.
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