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Strategic challenges in India’s water management. Presented to Green Business Council, Federation of Indian Chambers of Commerce and Industry, Hyderabad, 17 June 2004. Strategic Challenges in India’s Water Management Christopher Scott International Water Management Institute www.iwmi.org.
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Strategic challenges in India’s water management Presented to Green Business Council, Federation of Indian Chambers of Commerce and Industry, Hyderabad, 17 June 2004.
Strategic Challenges in India’s Water ManagementChristopher ScottInternational Water Management Institutewww.iwmi.org
Absolute Water Scarcity: India’s Upcoming Challenge 3/4 th of India, Pakistan, West Asia, North Africa and North China will be in the throes of absolute water scarcity over the coming 25 years Low rainfall/capita is the crux; 80% of it falls in less than 100 hours; storing it for 8 months in a climate of high mean temperatures, high windspeeds and low stream density is the challenge.
Western & Peninsular India and North China Plains have Low Precipitation and Dense Population
Krishna Basin NDVI (AVHRR) Nov-2000 Jan-2001 Mar-2001 May-2001 Jul-2001 Sep-2001
Drivers of India’s Water Future 2025 • Population Growth • Urbanization • Economic Growth • Agrarian growth and food production • Technology-trade factors Plus.. New approaches, mindsets, Institutions and policies
Well Density Increasing 1985 1995 2002 2002: 707 functioning wells/64 km2 (11/km2 = 300m spacing). Shift from valley bottoms to watershed-wide distribution. NGRI
2 Indias: Water Endowments
Repast of the Water Sector • India has been a ‘hydraulic society’ for millennia • Indus civilization • Tank-based empires • British era • Modern India, since Independence: • Over Rs. 1,00,000 crore invested in dams and canals • Rs. 24,000 crore per annum in power supply to agriculture
A river basin’s hydrology shapes its challenge. In Rhine and Omonagawa, rainfall always exceeds ET; in Murray-Darling, it never does; in Chad, Fuyag and Sabarmati, it does for a few months. Potential ET Rain fall
NO COUNTRY IN THE WORLD PUMPS AS MUCH GROUNDWATER AS WE DO...WE ALREADY HAVE 21 M WELLS AND ADD 1 M/YEAR. Groundwater Use in India Has more to do With population Density than the Availability of the resource
At current rate, Groundwater use will Ease out all other Sources of water.. This indicates the Failure of public Systems .. It will also redefine India’s water challenge
Groundwater Depletion: The ‘wild-card’ of India’s Water Future
Water-Energy Nexus in India • 30% of India’s power used to pump groundwater • Power utilities bankrupt ($ 5 billion annual operating deficits) • Booming groundwater economy • Rationed power supply with pricing a powerful power sector remedy plus an indirect tool for GW regulation
Electricity tariff Andhra Pradesh Tamil Nadu /kwh Rice Sugarcane Rice Sugarcane Rs. 0.50 ($0.01) - 0.3187 - 0.2572 - 0.3396 - 0.2984 Rs. 0.75 ($0.015) - 0.4085 - 0.3564 - 0.4414 - 0.3879 Rs. 1.00 ($0.02) - 0.5967 - 0.4768 - 0.6388 - 0.4925 Demand Elasticity, Power & Water
Price/Unit Supplyw,n = MCn Opportunity Cost/Unit Flatrate produces benefits for buyers P’w Supply’w1,n = MC’n P’n Innovation that reduces metering cost to zero expands social welfare The same effect is produced by charging flatrate & restricting power use to Q1 Demandw,n = MVPw Qo Q1 Quantity of Water & Power Water, Energy Demand
Price/Unit Supplyw,n = MCn Opportunity Cost/Unit P’w Supply’w1,n = MC’n P’n WASTE Degenerate flatrate: In absence of rationing, farmers expand water use to QMax Demandw,n = MVPw This reduces total welfare. Qo Q1 QMax Quantity of Water & Power Flat Rate with Rationing Raising FR to cover that loss will not help
Urbanization • By 2050, over half of India’s projected 1.5 billion population will live in cities • … close to 1 billion urban residents… • … growing wastewater volumes… • Sticker shock: 73% of urban wastewater in India is untreated, requiring US$ 65 billion or ten times greater than what the govt. proposes to invest (Infrastructure Development Finance Corp., 2003).
India: Key Water Sector Challenges • Meeting water demand of agriculture, domestic, industrial and environmental sector • Infrastructure creation and management • Water quality issues • Groundwater depletion