Water policy fails to chart course for pvt players

new delhi/chennai: the national water policy 2002, adopted by the government, provides a general directive on need for private sector participation, but has not spelt out a framework to enable it. pious intentions apart, what is needed is a clear-cut approach with possible mechanisms that can be followed. experts who gathered at a three-day seminar on water issues in chennai recently noted that policy-makers had failed to provide the right climate for the private sector. some say the time is ripe to to try and test local private players, instead of rushing into arrangements with international players without the required expertise. at the moment, two french companies ondeo and vivandi â€” are expected to finalise a water service mechanism (a management contract and concessional agreement) for bangalore and tirupur respectively. however past experience has shown that private players bow out of the scene when it becomes evident that returns are not assured. speaking to et , gourisankar ghosh, executive director, water supply and sanitation collaborative council, who says that the government was passive. â€˜â€™the government should attract good private sector players with strong incentives just as it does in other sectors. the centre should step in to give guarantees and start off with turnkey projects initially,â€™â€™ he says. if industry complains of lack of political will, the government points out that private participation is just not coming. shanta sheela nair, secretary, municipal and water supply department, chennai says â€˜â€™it took me over two years and repeated tendering only to get a higher offer .â€™â€™ world bank representatives wonder what the agonising is all about. there are several models to choose from service contract, management contract, build, operate transfer, build, own, operate, transfer, concessional agreement and divestiture, which progressively increase the risks.â€˜â€™ separate powers for accountability â€” government can have ownership of some sort, the private sector can bring in the business approach to delivery while an independent regulator can streamline other nitty grittyâ€™â€™ suggests junaid k ahmad, regional team leader, water and sanitation programme, south asia. but the problem is not just the want of a neutral umpire. the private sector develops cold feet due to the lack of information, in the absence of which there is no reliable resource costing. as paul appaswamy, director, madras school of economics points out, privatisation has to do with asset valuation...water supply system is not just about a scarce resoure, it is also about infrastructure.

Water policy fails to chart course for pvt players

The National Water Policy 2002, adopted by the government, provides a general directive on need for private sector participation, but has not spelt out a framework to enable it.

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