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Water trade is well deep
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Dr Sudhirendar Sharma

Villagers all along the coastal and mid-ridge zone of Goa have found an
ingenious way of ensuring livelihoods security, not from better crop
harvests but from trading water from their private wells. While exact
 number of those selling water is not known, the trend is quite common
 across the ultimate travel destination.

Though Goa had enacted its Ground Water Regulation Act in 2002, delay in 
framing the rules have allowed people like the Kudnekar brothers to sell 
water from their private well in village Saligao. Once known simply as a 
village located close to a popular hippy haunt, Saligao is now home to a 
brimming controversy in water trade that has brought the entire village 
up in arms against the duo.

Says geologist A G Chachadi of the Goa University, ``Overdraft from
 shallow sandy acquifer has impacted the groundwater level.'' Ignoring
 the lowering of water table in most other wells in the village, tankers
 have continued to extract about 435 cubic metres of water from
 Kundekar's well every day. Ironically, the Kudnekar brothers have been
 selling the precious community resource to the resource-hungry tourism
 industry for just 10 paise a litre.

But farmers around the Tirupur town in Tamilnadu have a keen business
 sense. Supported by a billion-dollar hosiery industry, farmers have long
 forgotten the art of crop cultivation along the periphery of Tirupur.
 For them, selling water from their private wells is what constitutes a
 good harvest. With lucrative margins, farmers' pursue their newfound
 vocation with gusto.

Trade in well water isn't unprecedented though. Tankers carrying
door-to-door potable water supply are common in most metropolitan cities
including Delhi, Chennai and Bangalore, where water tankers supplement
 the shortfall in municipal supply. Without doubt, the water is ferried
 from wells in the nearby villages. Most often, the contractors pay a
 pittance to the well owners.

But the World Bank has long argued that water vending has the potential
 to reform the monopolistic water sector by bringing in much-desired
 competition. Indeed, many of the World Bank-financed projects in
 Colombia, Paraguay and Senegal have supported small-scale water
 entrepreneurs in the context of the inefficient state-managed water
 utilities.

In Chennai, water vending through tankers meets 5 per cent of the total
water. Private water vending in Dhaka is flourishing at the cost of
inadequate municipal services. In both the cases, the World Bank had
 argued that suitable regulatory mechanism could help make optimum use of
 water resources as well as to exploit such private enterprise more
 effectively.

While the aid agencies promote water vending on the disguise to push the
privatisation button on beleaguered municipalities, government's apathy
 in creating stringent groundwater regulations creates convenient escape
 route for the thriving enterprises. Though legally there are no de jure
 rights to groundwater, de facto all landowners literally own groundwater
 underlying their land.

Over-exploitation of groundwater was thus far limited to agriculture but
 the emerging commercial dimension is stressing the already dwindling
 groundwater reserves in the country.  According to the Central
 Groundwater Board, there are over 150 `dark' blocks where the level of
 groundwater exploitation exceeds 85 per cent and this number is
 multiplying threefold every decade.

The `dark zones' are likely to increase many-fold if growing dependence
 on groundwater resources for municipal and industrial consumption were
 to grow at the present pace. Currently, around 50 per cent of the total
 urban and industrial demand is met through groundwater. An assessment by
 the National Institute of Urban Affairs found that 21 per cent of the
 urban water demand was met through wells.

Yet, urban water supply falls short of the rising demand. Unrestricted
access and lack of regulatory policy is encouraging trade in groundwater.

>From an estimated Rs. 3 billion a year, the groundwater trade is today > 
close to Rs 30 billion. What was earlier the bastion of farmers and small 
time water vendors is now attracting investors and municipal water 
authorities as well.

Thanks to the World Bank triggered water sector reform process trade in
water has now been legitimised for meeting growing urban water demand, so
much so that water utilities in the public domain are switching to the
profit-making version of water supply. Absolving itself of the prime duty
 of servicing the poor, the Delhi Jal Board (DJB) is toying with the idea
 of selling water through water booths. Once operational, civic bodies in
 other cities will follow suit.

DJB's daily supply of about 650 million gallons (mgd) doesn't cover 1,600
unauthorised colonies and 1,100 slums. Instead of laying pipeline to
 reach this large segment of the urban population, the DJB wants them to
 queue in front of the water booths to purchase their daily requirement
 of water. Expectedly, water supply to the booths would be ensured
 through tankers.

Wherefrom the DJB will procure additional 250 mgd water to reach out to
 the unreached is anybody's guess? However, it is clear that groundwater
 will constitute bulk of the supply, giving institutional cover to the
 unorganised trade in groundwater. Concern for the poor notwith-standing,
 the Kudnekars are sure to thrive in the emerging water trade. The signs
 are ominous!

Dr Sudhirendar Sharma is a water expert and a development analyst
 attached to the New Delhi-based the Ecological Foundation. He can be
 reached at [EMAIL PROTECTED]

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