The Hindu : Global players eyeing Indian water market

Online edition of India's National Newspaper
Thursday, Aug 14, 2003

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Global players eyeing Indian water market

By Aarti Dhar

NEW DELHI AUG. 13 . Global players in the field of water privatisation are keenly watching the developments in India that has suddenly come to mean big money. With water resources in the country depleting, and the Government throwing up its hands, at least five global corporates are ready to tap the market estimated at over $2,000 million.

Environmentalist Vandana Shiva in a publication, `Ganga; Common Heritage or Corporate Commodity', brought out by her organisation, Navdanya, has pointed out that neither the guidelines nor the National Water policy, 2002, which advocates more private involvement in the water sector, have bothered to see the result of such corporatisation elsewhere in the world, where it had been rejected outright. It is like privatising national assets and nationalising private losses. The country is being sold and nobody has the courage to speak out," she says.

In the Capital, a 635-million litres a day capacity water treatment plant is to come up at a cost of $50 million at Sonia Vihar. The water for the Suez-Degremont plant will come from the Tehri Dam through the Upper Ganga canal up to Muradnagar in western Uttar Pradesh and then through giant pipes to Delhi. However, it will choke the Upper Ganga Canal, the main source of irrigation for the region. Another fear is the possible hike in the water price that will be supplied to the people through the plant.

According to Dr. Shiva, Suez has invested Rs. 200 crores in the project, but this is insignificant as compared to the investment that is made by the public. The construction of the Tehri Dam, including the rehabilitation cost of the displaced people is around Rs. 10,582 crores. The cost of construction of the Upper Ganga Canal is Rs. 14,745 crores, and the cost of laying pipelines is Rs. 111.31 crores. Besides, of the guaranteed period of 10 years of the Suez contract, farmers will suffer a loss of Rs. 70,425 crores. Hence, the Suez owes a total of Rs. 2,28,574 crores to the public apart from the ecological and social debt, which is unpayable. Again, the people of Sivaganga in Tamil Nadu are agitating against a soft drink manufacturer's plan to exploit large quantity water from the region, which is already facing scarcity. As per the agreement the soft drink company has entered into with a sugar mill, it will utilise 75,000 litres of groundwater a day. The plant is expected to affect water supply to Sivaganga, Manamadurai and Tirupuvanam towns and 80 villages, as indiscriminate exploitation cannot be ruled out, the publication warns.

`Worst has come true'

Quoting a study conducted by environmentalists, Dr. Shiva says that it had warned that the extraction of groundwater by two large cola companies, that have bottling plants in the drought-prone Palakkad district of Kerala, would lead to a deficient rainfall pattern and deterioration in the quality of groundwater owing to over-exploitation.

The worst has come true, as several colonies in Chittur taluk have begun experiencing severe drinking water shortage.

Making a specific reference to the New Tirupur Area Development Corporation, a company that will provide water to the industries and domestic-users of the town, the publication says that the new water company may bring in an additional 185 million litres a day, but the pollution threat will escalate further.

The company has not addressed the issue of treatment of effluents generated by industries — mainly dyeing and bleaching in knitwear — which will flow directly into the Noyyal river.

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