The issue of water and its availability is not merely a question of economics or the physical challenge in the satisfaction of very basic human needs, but it also has cultural and, in several respects, religious dimensions. To evaluate what needs to be done for making water available to all in this country, we need to go back in time perhaps several thousands of years and also go across the globe to fully comprehend the global nature of the challenge of making water available to every citizen of this planet.

Policies and strategies for new forms of management of water resources and any attempt to bring in principles of good business management in this sector in India evoke an extreme emotional response. We have to appreciate that this is so largely because our ancestors who settled on this subcontinent essentially set up habitations around the major waterways, which provided sustenance for human beings as well as cattle and other animals that were seen as a source and symbol of prosperity. It is no surprise, therefore, that the very first centres where civilisation flourished on the Indian subcontinent were those that were located around the major river systems of this land. With an extremely favourable ratio of water resources to the number of human beings whose needs were to be met, water scarcity was totally unknown to those who inhabited this land. This vital gift of nature that was bestowed in abundance on the India of 5,000 years ago became, therefore, a God-given blessing that no government or management structure had any right to interfere with.

This situation unfortunately has changed drastically over the years, and more so in the last few decades with rapid growth of our population, a much more resource intensive form of agriculture and rapid development of the Indian economy as a whole. The balance between generous water availability and modest human needs that justified total absence of market forces in the management of water was fully justified perhaps a century ago. But things have changed drastically since. In the short period of 50 years between 1947 and 1997, the availability of water per year in India declined from around 6,000 cubic metres per capita to a little over 2,000 cubic metres in 1997. Projections for the future as carried out by TERI in its major study called green (Growth with Resource Enhancement of Environment and Nature) India 2047 indicate that several areas of the country that have adequate water resources and availability today would suffer from water scarcity by the year 2047 and large areas would become water-stressed. Clearly, a very different approach to the management of our water resources is called for if we have to meet the growing demand of our expanding economy and meeting the very basic needs of an expanding population.

In some respects, the words of Samuel Coleridge in his famous The Rime of the Ancient Mariner of "water, water everywhere nor any drop to drink" is relevant across the globe. Less than the 3 per cent of the world's water is fresh, while the rest is seawater and, therefore, undrinkable. Of this 3 per cent, over 2.5 per cent is in a frozen form, locked up largely in Antarctica, the Arctic and as glaciers on our mountains, generally inaccessible to the human race. What we are left with is the balance 0.5 per cent from which not only do we have to satisfy the needs of the human race, but also the demands of an increasingly stressed ecosystem, which needs water to survive. Water problems across the globe are, therefore, likely to become far more serious than we have experienced thus far.

The largest use of water in this country is for irrigation in the agricultural sector. We use well over 80 per cent of our water for agriculture as opposed to a slightly lower percentage in China and Egypt. In contrast, France uses a little over 10 per cent and the UK well under 5 per cent for agriculture. This, of course, is a direct function of the pattern of rainfall, which is far more uniform in several parts of the world and abundant enough to permit agriculture round the year. Other sectors in India that are major users of water are the electric power industry, which requires water for hydroelectric stations and as a coolant in thermal power stations. An increase in industrial activity has placed growing demand for water for several industrial processes. Similarly, many industries such as those dealing with food, beverages and pharmaceutical products require water as an ingredient in finished products for human consumption. Finally, water is also used as a medium for waste disposal. The excessive abuse of our river systems and lakes is an unfortunate example of excessive use of water for waste disposal.

Water quality in our river systems has reached crisis proportions. The quality of river water as pointed out in the green India 2047 study is monitored at 480 stations under different programmes in the country. On the basis of these measurements, the quality of water is classified along five different classes, with class A representing water fit for drinking without conventional treatment but after disinfection. Class E, on the other end, is fit only for irrigation, industrial cooling and controlled waste disposal. The total coliform count in Indian rivers, has risen steeply in recent years, and standards are being violated in a large number of cases. Some of the worst affected rivers in the country are Sabarmati and Khan, in which the biochemical oxygen demand (BOD, a measure of food for bacteria found in water) values were greater than 20 milligrams per litre in 1997. The BOD value of water in Elangabeel lake in Assam and Ulsoor lake in Karnataka is more than 7 times the maximum permissible limit. Major sources of water pollution in India are city sewage and discharge of industrial waste. The sewage released from cities increased from an estimated 5 billion litres a day in 1947 to around 30 billion litres a day in 1997. Facilities for effective treatment of sewage represent only 10 per cent of the quantity generated.

Based on these facts, it can be concluded that the rapidly increasing demand for water by Indian society can be met neither in quantity nor quality unless a radical departure is made to the existing policies and practices established in this sector. In general, government departments responsible for water management and supply have largely bred ineffective and inefficient management of this resource. As a result, not only is there unhealthy overuse of water for several applications, but polluting industries and cities dumping sewage are able to get away in the absence of effective penalties for violating standards and regulations and a lack of incentives for proper action.

The introduction of market principles for the management of water is generally resisted and condemned by civil society and various communities, because the availability of water is seen as a God-given right which no operators of markets or business have any licence to interfere with. Yet, in the absence of proper pricing signals, it is unlikely that the right technological solutions will emerge and be disseminated widely enough in any society. Technological possibilities that can bring about revolutionary improvements in water usage range from drip irrigation in agriculture to water conserving toilets that use recycled water in our towns and cities. Yet, none of these is likely to be adopted and persevered with by consumers, unless there is a price attached to inefficient consumption. There are also massive leakages and wastage in the public supply and distribution of water, which again would get plugged effectively if agencies responsible for the management of water evaluate and act to reduce the economic loss involved. In other words, some business principles must govern the supply and distribution of water.

The big challenge in moving to such a scenario lies in convincing the public that in the ultimate analysis, they would be the main beneficiaries of market principles applied to water management. Another aspect that requires the use of appropriate market instruments is in respect of pollution of water. The huge economic loss that society incurs because polluters only evaluate their narrow private gains while dumping large quantities of pollutants into our waterways, needs radical change. Penalties for water pollution must match if not exceed the cost imposed on society. The worst sufferers in this regard are a large number of poor people who cannot buy bottles of factory processed water and poor fishermen who have nothing to catch other than tonnes of sewage in our dead rivers. There is enough legislative back-up for effective action and punitive measures for polluters in this country. The major weakness lies in an effective institution that can transparently and honestly ensure compliance with the law, and thus ensure net benefits to society.

As a concluding concern, it might be mentioned that the impacts of climate change on India could adversely affect the availability of water resources and their even distribution during different periods in the year. Hence, there is an urgent need for adapting measures by which Indian society can minimise the adverse effects of climate change, particularly as they relate to the water regime in the country. Water for all would remain an unfulfilled dream unless the government, the media, business and civil society work in partnership to bring about a total revolution in our thinking about this vital resource and in its essential management. If there is a sector where public-private partnerships need to be put to test, it has to be in the water supply system in our country.

The author is Director General of TERI