The Hindu : No privatisation of water, says CM

Online edition of India's National Newspaper
Sunday, Feb 01, 2004

New Delhi

New Delhi

No privatisation of water, says CM

By Our Staff Reporter

NEW DELHI, JAN. 31. The Delhi Chief Minister, Sheila Dikshit, today completely ruled out "privatisation'' of the water distribution system in the Capital and asserted that water tariff would be raised "only'' if it was approved by and acceptable to the consumers.

Addressing the valedictory session of a Bhagidari Workshop organised by Delhi Jal Board (DJB) here, Ms. Dikshit announced that her Government would soon constitute a water regulatory body along the lines of the Delhi Electricity Regulatory Commission (DERC) to determine the water tariff structures after considering the views of all stakeholders.

Stating that the ultimate objective of her Government was to provide "round the clock'' water supply to all Delhiites and that too within their paying capacity, Ms. Dikshit said her Government had decided to bring out a "Delhi Water Policy-2020'' within the next six months.

Seeking to allay fears of the RWA's representative with regard to privatisation, she said: "We do not intend to privatise the water sector. This is a basic necessity of every person. It cannot be handed over to the private sector. At the most we can corporatise the DJB so as to improve its efficiency and quality of water supply.''

Arguing that Delhi had the lowest water tariff in the country and that massive investment was required to improve the infrastructure and quality of water supply, she said: "Water tariff has to be raised one day or the other. But before increasing the cost of water, it has to be ensured that DJB improves its efficiency and the customer is satisfied with it.'' Even if it were increased, it would continue to remain one of the lowest in India, she assured.

Replying to media queries regarding a recent World Bank study, which had reportedly recommended privatisation of the water sector and the hike in tariff, Ms. Dikshit said, her Government had its own view on privatisation and water sector. "We will do whatever is best in the interest of the people.''

Welcoming the comment of one RWA representative that water should not be supplied free of cost and that people were willing to pay more if there was improvement in water supply, she said: "If water is supplied free, it will encourage wastage. We must learn and accept to pay for the services we get.''

She also urged people to encourage rainwater harvesting in their area. "I am of the opinion that legislation on this issue should be the last resort. Our Bhagidari approach in this regard can be very effective.''

During the three-day conference, officials from all cadres of the DJB, representatives of RWAs, market association, government institutions and agencies had a lively discussion on various issues -- consumer satisfaction, revenue generation, efficiency, productivity and improving supply of water and cost reduction. The DJB Chief Executive Officer, P.K. Tripathi, said he had constituted teams to draw an action plan in the thrust areas.

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