Economic issues in the management of water resources in the drought prone Pune district of Maharashtra State

This study by the Subhash B Bhagwat, the Visiting Fulbright Scholar to ACWADAM deals with economic issues in the management of water resources in the drought prone Pune district of Maharashtra. The situation in Pune city is intimately connected to the situation in Pune district. Likewise, the state and national policies and conditions ultimately determine what happens in individual districts or towns. Even then there is plenty of room for cities and districts to influence their own fate with respect to water and the related issues. Therefore, this report focuses on the district of Pune and Pune City but only in the context of and in conjunction with the state of Maharashtra and to some extent India itself.

In summary, many of the actions required to deal with the water issues in Pune district can and should be taken at the district level, even though they would have to be replicated everywhere in the state if the economic competitiveness of the district and the state is to be maintained. Some of the steps required to achieve this goal can be presented as follows:

• Maharashtra (as well as India at large) depends much more on groundwater than on surface water, but governments primarily invest in surface water. This clearly indicates the need for a paradigm shift to -
  • stop the rapid depletion of groundwater and
  • invest heavily in groundwater recharge and managing the ever-increasing demand for more water. NGOs and individuals involved in the recharge endeavor have shown the way.
• Even though water, electricity, sewage handling and related health are national concerns in India it is necessary to recognize that solutions to problems are often under state and local control. Most importantly, water and sewage handling issues can and must be handled by the state and districts. Too often the authorities look to the national government and even world bodies such as the World Bank for water and sewage handling solutions. Unless the district authorities take initiatives, the problems in these areas will not be resolved.
• There is at best marginal consideration given to understanding the geology of the state which is fundamental to solving the water problem. The hydrogeology of Maharashtra, involving the Deccan Basalts, needs large scale geologic mapping studies because of the highly localized and variable hydrogeological conditions. Studies elsewhere in the world have shown that state investments in large scale geologic mapping pay off handsomely in terms of benefits to the society. Success in groundwater recharge will critically depend on how well the hydrogeology is understood at the micro scale. The integration of surface and groundwater utilization cannot happen without an excellent knowledge of hydrogeology.
• Pune district, although relatively the best provided district in the state, faces stronger future water demands than other districts. Its water delivery infra-structure requires large public investments in the operation and maintenance area. Even so, groundwater remains a major source of supply in urban and rural Pune district. There is a need to systematically assess the role of groundwater in all urban areas, especially in the fast growing Pune district.
• The economic interconnections between water supply, electricity availability, sewerage and waste water treatment and public health care expenditures need to be recognized. An increase in expenditure on sewerage treatment can free capital required for investments in groundwater recharge and water infra-structure by reducing the need for funds for public health care. Private participation in dealing with the sewage issue must involve the accountability principle: Levying fines for pollution is not an adequate incentive to comply; polluter must rectify the problem regardless of costs.
• Water and electricity rates have no connection with costs. To make the situation worse, the cost recovery mechanism in the water and electricity sectors functions so poorly that together they represent the largest source of drain on the public finance. Plugging this massive loss requires political determination and strong administration of government agencies involved. The appropriate pricing of water is supported by economic theory but cannot be practiced unless the issue of water rights is resolved and functioning institutions for implementation exist.  Although water is under priced everywhere in the world efforts to at least completely recover the direct cost of water supply need to be made.
• Data collection is a basic public interest function that can only be done by government agencies on a large scale. Considerable amounts of data are collected by various government agencies. However, the process is fragmented among various state, district and city offices. As a result of a lack of coordination it is difficult to identify where what data would be available. Despite the recent law to guarantee access to information, the procedure is mired in bureaucracy. Insiders privately concede that data collectors need proper training to ensure the quality of collected information. Ironically, some of the data are available on the internet but information about this was not forthcoming from the officials. The World Bank report on India’s water situation, published recently, highlights many of the issues related to government institutions
• Land use planning does not seem to exist as a concept in Pune district including Pune city and the surrounding areas in particular. This has resulted in indiscriminate use of prime farm land for construction, brick-making and road building. At the same time, water supply is inadequate or non-existent in many newly built-up areas.
• Sewage lines often do not reach new subdivisions so that septic tanks are installed with all the attendant problems and health risks. No efforts are known to exist to understand how the urban and industrial growth, the septic tank practices and the increasing reliance on groundwater in the “backyards” may have affected groundwater quality and recharge as well as public health. Valuable surfaces may have been built over and may be permanently affecting groundwater recharge in many parts of the district.
• Rainwater harvesting has captured the imagination of some policy makers. However, as a concept it is framed too narrowly. In a real sense, rainwater harvesting must go hand in hand with groundwater recharge. The above-the-ground water storage must be replaced with aquifer recharge, especially proper hydrogeological studies must be conducted prior to implementing artificial recharge schemes.
• Additional efficiency could be built into a water management system if water entitlements are included. These would be conditional and proportional to the seasonally available water supply. Entitlements should be accompanied with incentives to conserve water. Without such incentives excessive use or application of water is promoted. One form of incentive would be the right to sell saved water to the highest bidder. Any entitlement water saved through conservation measures must become an opportunity to earn additional cash.

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