NEW DELHI: Intervening in the matter of the controversial privatisation of the water distribution network in the Capital, Congress president and National Advisory Council chairperson Sonia Gandhi has assured a group of concerned eminent citizens that the Delhi Government's loan application to the World Bank has been kept in abeyance pending a thorough examination of the recommendations on the proposed reforms in the water sector.

In a letter addressed to the Right to Water Campaign and the eminent citizens, Ms. Gandhi has stated that for a "thorough examination" of the recommendations, the Delhi Government is understood to be seeking expert advice. The Delhi Jal Board has also taken up an in-house exercise to examine the recommendations.

"The Jal Board is also in touch with TERI, ASCI Hyderabad and NCAER to initiate wider consultations in this regard," the letter adds. "Pending a full appraisal of the recommendations, the Jal Board has approached the Delhi Government that the processing of the loan be kept pending. Therefore, a decision on seeking World Bank loan is yet to be taken."

The letter from Ms. Gandhi comes in response to a similar letter written by more than 20 eminent citizens to her in September expressing serious reservations over the 24X7 project of the Delhi Government. The signatories included Muchkund Dubey (former Foreign Secretary), Bipan Chandra (eminent historian), Romila Thapar (eminent historian), Deepak Nayyar (former Delhi University Vice-Chancellor), Padma Bhushan G.P. Talwar, G.S. Bhalla (former Member of the Planning Commission), Chitra Mudgal (former Chairperson of Prasar Bharati), Prabhash Joshi (eminent journalist) and Aruna Roy (Member National Advisory Council).

In their letter to Ms. Gandhi these people had referred to the stiff conditions attached to the World Bank loan, which would "give full powers to the Bank" to have a final say on all matters by overruling even the decisions of the elected Government and Jal Board. The Bank has the powers to impose a consultant/contractor of its choice, giving it sweeping powers to intervene at technical stages of the bidding process, thus rendering the entire bidding process irrelevant.

The signatories had objected to the project stating, "The project will influence the lives of millions of people in Delhi. The terms and conditions give the World Bank the last say in all matters to the total exclusion of Government, elected representatives and the people. The terms and conditions appear to grossly undermine all norms of democratic decision-making in India, and raise issues of sovereignty."

They had also raised serious concerns about the impact of this project on the people of Delhi. Tariffs would rise very high and could take water out of the reach of a number of people. The services are likely to deteriorate under the water companies. The project simply ensures guaranteed and unjustifiably high profits for the multi-national water companies. Salaries of about 25,000 dollars per month have been recommended for the employees of water companies. All this would be passed on to Delhi's citizens in the form of higher tariffs. "We welcome the intervention of Ms. Gandhi in this important matter concerning lakhs of citizens," remarked Madhu Badhuri of the Right to Water Campaign.

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