The Hindu : New Delhi News : Private players gain foothold in water sector

Online edition of India's National Newspaper
Thursday, Jul 29, 2004

New Delhi

New Delhi

Private players gain foothold in water sector

By Lalit K. Jha

NEW DELHI, JULY 28. Small-scale private players have gained a strong foothold in the Capital, filling in the vacuum created by the Delhi Jal Board which has failed miserably in providing not only the bare minimum but also safe and hygienic water to the residents.

A recent study carried out by the National Institute of Urban Affairs (NIUA) on behalf of the Asian Development Bank (ADB) has revealed that these private players charge many times more from the consumers compared to the public service provider.

The study, carried out by Usha P. Raghupathi, has classified small-scale private players into four categories -- private water tankers that cater to middle and high income groups, private pipeline service providers operating in unauthorised, pushcart operators in low income group areas like slum clusters and resettlement colonies and the packaged water providers catering to the need of middle and high income groups.

Holding the DJB responsible for the increasing gap between demand and supply, the ADB-sponsored study said the scarcity of drinking water in middle and high income group colonies and the inability of the public utility to bridge the gap with its own set of tankers, has provided an opportunity to private water tanker players to come into action.

While the DJB supplies water through tankers free of cost, the private tanker operators charge at least Rs. 100 per 1,000 litre. In summer the rate increases considerably and the monthly water bill per family comes to at least Rs. 1,500. As per an estimate there are about 1,200 private tanker operators in the Capital and their numbers are increasing with the scarcity in water supply.

The private tankers extract ground water and supply it without treatment. These tankers also ignore the mandatory display of "water is not fit for drinking". This violation is not taken seriously, in a scarcity situation, and is being used by the people for drinking and cooking.

Private pipeline water providers is a new phenomenon which is spreading very fast in unauthorised colonies where the DJB does not provide water either through tankers or house connections. These private operators lay down pipelines and provide household connections as was being done by the DJB. However, the pipeline is of very poor quality and the water is extracted from ground and supplied without any treatment.

The study found these private operators collect a deposit for each connection and charge Rs. 200 per month for supplying 500 litres of water daily. High consumption attracts additional charge. The private operators, normally a resident of the colony, take private loan. The study acknowledged that without these service providers, the residents would have to walk a long distance to collect water for their daily needs.

Pushcart operators, the third in the list, normally collect water in a container from a DJB source or other tube wells and sell it to the residents, charging only for the transportation.

They operate mostly in low-income settlements. Though the cost of water supplied varies on the distance from where it is being transported, normally it ranges from Rs. 6 to Rs. 8 per 25 litre. The main reason for existence of pushcart operators is the low supply at the DJB hand pumps and irregular timings of water supply. Depending on the pushcart saves lot of time of the residents, who otherwise would have to stand in queue for several hours in the wee hours.

The market of packaged water has been increasing manifold because of perceived drop in quality of water supplied by the DJB. "Those who can afford rely on bottled water for at least drinking and cooking purposes," said the report. The rates vary from Rs. 10 per litre to Rs. 35-40 for a 20-litre bottle.

Arguing that the residents required reliable, quality and assured supply of water at fixed time, the ADB-sponsored report said if this were not met by the DJB, people would turn to other alternatives.

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