Privatization of Water: Various Issues
Clean and potable water is not merely a commodity but also a basic human need. In the backdrop of groundwater crisis; unequal distribution of water; issues in delivery of safe and drinking water to people, particularly in rural areas; and to check wastage of potable water, the debate on “privatization of water” is going on. For your examination, here are few fodder points to help in writing answer for a related question:
Arguments in Favour of Privatisation of water
Social Obligation versus Efficiency Argument
Private sector brings productivity, innovation and profitability but social obligation is almost zero. At the same time, public distribution system is known for inefficiency, mismanagement, corruption but its social obligation is high. Thus, privatization would help in quality, quantity and frequency of water supply to public but it will be not without additional costs.
Infrastructure Argument
Urban water distribution involves establishment of huge infrastructure for water treatment and its supply. Privatisation may bring huge capital inflow and new technology into this sector. This may increase the cost of water but will also improve urban water footprint and enhance India’s water economics.
Innovation Argument
Privatisation of water may bring innovation in methods to make an optimum use of rainwater, groundwater, lake water, pond water, and sewage treatment methods.
Investment in Rural Distribution
India has the world’s largest number of people deprived from access to safe water, and groundwater provides 85% of drinking water. But groundwater is generally contaminated with arsenic, fluoride etc. For example, groundwater in Rajasthan has high fluoride concentration while in West Bengal has high arsenic contamination. Since 70% of Indians still leave in rural areasm there is huge demand for safe and potable water even in rural areas. Currently, high quality treatment of water is possible only in few urban areas. For rural areas, it is still a distant dream. Thus, there exists a demand-supply gap and the private companies may find it profitable to invest in rural water supply under favourable government policies.
Freeing Local Bodies Argument
As per the 73rd Amendment of the Constitution, providing drinking water to all rural households is included in the 11th Schedule and that to urban households in 12th Schedule. Privatisation of water would not only save the time and money of municipalities and gram panchayats but would also boost the government’s ambitious National Rural Drinking Water Programme (NRDWP).
Arguments against Privatisation of water
Issue of social obligation and accountability
There is social and public accountability of local governments in the distribution of water. Private companies would be accountable to their shareholders and not to the public. So, privatization of water would reduce public accountability and could ultimately affect the quantity and quality and cost of water supply.
The cost , understaffing and job losses
Economically weaker section of the society is already finding it difficult to arrange food, clothing and shelter for them. And if due to market competition the cost of water goes high then it would be even difficult to arrange for daily water. Further, private companies generally look for cheap labour and are hardly concerned of hiring local people who have good knowledge of locality. This may lead to understaffing and job losses.
The massive exploitation argument
Most of the Middle East countries are facing water shortage, and are capable and ready to pay high cost for potable water. Privatisation of water would open doors for bulk water exports from India to water poor countries. This would surge the water demand and massive extraction of water from aquifers can result in ecological imbalance and destruction.
Concluding Notes
Instead of privatisation of water, government can promote models of public-private partnership in water treatment, distribution and management. Government should facilitate private companies with tax-free bonds so that they can get reasonable amount of investment from public. Though water is a state subject, there should be continuous support from central government to states in terms of finance as well as technical support. This would help government to enhance its National Water Mission.
