INDIA INFRASTRUCTURE REPORT 2011

OTHER IIR TITLES

India Infrastructure Report 2001Issues in Regulation and Market Structure

India Infrastructure Report 2002Governance Issues for Commercialization

India Infrastructure Report 2003Public Expenditure Allocation and Accountability

India Infrastructure Report 2004Ensuring Value for Money

India Infrastructure Report 2006Urban Infrastructure

India Infrastructure Report 2007Rural Infrastructure

India Infrastructure Report 2008Business Models of the Future

India Infrastructure Report 2009Land—A Critical Resource for Infrastructure

India Infrastructure Report 2010Infrastructure Development in a Low Carbon Economy

INDIA INFRASTRUCTURE REPORT 2011

Water: Policy and Performance for Sustainable Development

Infrastructure Development Finance Company

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List of Tables, Figures, and Boxes viiiForeword xvAcknowledgements xviiList of Contributors xixList of Abbreviations xxi

Overview xxix Piyush Tiwari and Ajay Pandey

Section I

MACRO

1. A River Basin Perspective of Water Resources and Challenges 3 Anju Gaur and Priyanie Amerasinghe

2. Implications of Climate Change for Water Resources Management 18 P.P. Mujumdar

3. Opportunities for Trans-boundary Water Sharing in Th e Ganges, Th e Brahmaputra, and Th e Meghna Basins 29 Mashfi qus Salehin, M. Shah Alam Khan, Anjal Prakash, and Chanda Gurung Goodrich

4. A Million Revolts in the Making: Understanding Water Confl icts 44 Suhas Paranjape and K.J. Joy

5. Water Rights and the ‘New’ Water Laws in India: Emerging Issues and Concerns in a Rights Based Perspective 56 Videh Upadhyay

Section II

RURAL

6. Past, Present, and the Future of Canal Irrigation in India 69 Tushaar Shah

Contents

7. Groundwater Irrigation in India: Growth, Challenges, and Risks 90 Vasant P. Gandhi and Vaibhav Bhamoriya

8. Rainwater Harvesting for Irrigation in India: Potential, Action, and Performance 118 Vasant P. Gandhi and Vaibhav Bhamoriya

9. Water Management Institutions for Enhancing Water and Food Security: Designing for Better Adaptiveness 134 Vaibhav Bhamoriya and Vasant P. Gandhi

10. Evolving Regulatory Framework for Rural Drinking Water: Need for Further Reforms 151 Philippe Cullet

11. Changing Waterscapes in the Periphery: Understanding Peri-urban Water Security in Urbanizing India 162 Anjal Prakash, Sreoshi Singh, and Vishal Narain

Section III

URBAN

12. Provincial Water Access in China and India: A Comparative Assessment 177 Fan Mingxuan and Bhanoji Rao

13. Review of Reforms in Urban Water Sector: Institutional and Financial Aspects 199 Subodh Wagle, Pranjal Deekshit, and Tejas Pol

14. Addressing the Challenge of Financial Sustainability in Urban Water Supply Services— Role of Performance, Monitoring, and Planning 210 Vandana Bhatnagar and S.R. Ramanujam

15 Private Sector Involvement in Water 225 Part I PPPs in the Drinking Water and Irrigation Sectors: A Review of Issues and Options V. Sathyanarayana and D.T.V. Raghu Rama Swamy

Part II Water Sector—A Private Equity Perspective 235 Prasad Gadkari and Shishir Maheshwari

16. Transforming Water Utilities: Policy Imperatives for India 240 Piyush Tiwari and Ranesh Nair

17. Water in Cities: Rethinking Services in Transformation 260 Marie-Hélène Zérah and Sylvy Jaglin

18. Industrial Water Demand in India: Challenges and Implications for Water Pricing 274 Suresh Chand Aggarwal and Surender Kumar

Section IV

WASTEWATER

19. Water Pollution in India: An Economic Appraisal 285 M.N. Murty and Surender Kumar

20. Municipal Wastewater Management in India 299 J.S. Kamyotra and R.M. Bhardwaj

vi Contents

21. Th e Economics of Municipal Sewage Water Recycling and Reuse in India 312 Pritika Hingorani

Section V

WATER VALUATION AND INSTITUTION

22. Water Sector Reforms: Implications on Empowerment and Equity 325 Sachin Warghade and Subodh Wagle

23. Pricing the ‘Fluid Mosaic’: Integrated ‘Inclusive Valuation’ of Water from the Scarcity Value Perspective 337 Nilanjan Ghosh and Sarika Rachuri

24. Pricing Urban Water: A Marginal Cost Approach 351 Kala Seetharam Sridhar and Om Prakash Mathur

25. Dams and Environmental Governance in North-east India 360 Neeraj Vagholikar

26. Evaluation of National Water Mission using Global Water Partnership Toolbox 370 Suman Apparusu

Section VI

INFRASTRUCTURE REVIEW

27. Th e Infrastructure Sector in India 2010–11 379 Manisha Gulati

Contents vii

Tables 1.1 Surface and Groundwater Resources in River Basins in India 4 1.2 Available Water Resources in India and Demand Projections by 2025 and 2050 8 1.3 River Basin-wise Water Demand Projections for 2010, 2025, and 2050 9 1.4 Pollution in Selected Stretches of Rivers Basins 11

3.1 Catchment Areas of the GBM Basins 30

6.1 Deteriorating Finances of Indian Canal Irrigation, AD 1900 compared with AD 2000 71 6.2 Extent of Irrigation Deprivation Levels of Tail-enders in Selected Gravity Flow Irrigation Projects in India 73 6.3 Various Estimates of Area Irrigated by Canals and Wells in India, C. 2000 75 6.4 Socio-technical Context of Surface Irrigation in Diff erent Eras 79 6.5 Farmer Modifi cations and Adaptations of Canal Systems to Serve their Needs 85

7.1 Dynamic Groundwater Resources of India, 2004 91 7.2 River Basin-wise Groundwater Potential of the Country 91 7.3 State-wise Ultimate Groundwater Irrigation Potential, 2001–2 93 7.4 State-wise Groundwater Resource and its Development in India 94 7.5 State-wise Frequency of Villages having Irrigation Facility per 1,000 Villages, and their Distribution by Type of Such Facility in India 95 7.6 Sources of Irrigation in India, 1950–1 to 2008–9 96 7.7 Average Yields of Major Crops by Water Source 98 7.8 Input Use and Agriculture Productivity by Water Source 98 7.9 Th e Impact of Irrigation on Variability in Agricultural Output 99 7.10 Distribution of Wells According to their Ownership, 2000–1 100 7.11 Distribution of Wells According to Farm Holding Size, 2000–1 101 7.12 Crop Season-wise Area Irrigated by Groundwater, 2000–1 101 7.13 Farm Size-wise Distribution of Households Participating in Water Markets 103 7.14 Reasons for Participation or Non-participation in Water Markets 104 7.15 Impact of Rainwater Harvesting and Groundwater Recharge by Check Dam Groups of Saurashtra Region in Gujarat—Members’ Response 105 7.16 Categorization of Blocks/Talukas/Watersheds as Overexploited and Dark/Critical 106

Tables, Figures, and Boxes

Tables, Figures, and Boxes ix

7.17 Pricing of Water: Crop-wise Charges and General Irrigation Needs 112 7.18 Approximate Depth of the Water Level, Wells, and Well Cost Over the Years 112

8.1 Distribution of Annual Rainfall by Seasons in India 120 8.2 Distribution of Area by Annual Rainfall in India 120 8.3 Observed Annual Fall in Water Table Levels, District Frequency, May 1999 to May 2001 121 8.4 Yield and Returns per Hectare of Diff erent Crops 122 8.5 Targets and Budget for Recharge Structures Under the Scheme ‘Artifi cial Recharge of Groundwater and Rainwater Harvesting’ of the Tenth Plan 123 8.6 Number of WSD Projects, Area Covered, and Funds Released under Diff erent WSD Programmes in India, 1995–6 to 2007–8 125 8.7 Area Treated Under DPAP 126 8.8 Area Treated Under DDP Since its Inception 126 8.9 Number of Check Dams Constructed in Various Districts in Gujarat, June 2007 128 8.10 Respondent Profi le 128 8.11 Role in Running the Institutions 129 8.12 Performance of the Institution 129 8.13 Impact of the Institution on the Village, Diff erent Communities, and the Environment 129 8.14 TOBIT Regression: Dependent Variable–Overall Performance/Success 130

9.1 Enactment/Amendment of Irrigation Act: Position by State 138 9.2 Progress of WUAs Formation in Maharashtra 139 9.3 State-wise Number of WUAs and the Area Covered by them 140 9.4 Sample Distribution 143 9.5 Characteristics of the Chosen Variables 144 9.6 Adaptiveness and Institutional Structure in Water Management Institutions 145

11.1 Percentage Growth Rate of Population in the Components within HUA 163 11.2 Level of Urbanization in Hyderabad 164

12.1 Summary of Methodology 179 12.2 IDWA for Indian States 180 12.3 IDWA for Chinese Provinces 181 12.4 Correlation between IDWA and Other Social Indicators 185 A12.1.1 Resource Index, India 187 A12.1.2 Access Index, India 188 A12.1.3 Capacity Index, India 189 A12.1.4 Quality Index, India 190 A12.1.5 Use Index, India 191 A12.1.6 Resource Index, China 192 A12.1.7 Access Index, China 193 A12.1.8 Capacity Index, China 194 A12.1.9 Quality Index, China 195 A12.1.10 Use Index, China 196 A12.2.1 Social Indicators for India 197 A12.2.2 Social Indicators for China 198

x Tables, Figures, and Boxes

13.1 Urban Water Reforms—A Snapshot 201 13.2 Key Highlights of Urban Water Reforms in Selected States in India 202

14.1 International Comparison of Urban Population 210 14.2 Indian Water Utilities Performance Indicators 211 14.3 Growth in Direct Connections (2008–9) 212 14.4 City/Town-wise Average Access to Drinking Water 212 14.5 Share of Water Supply Projects in Total Project Funding 214 14.6 Revenue Generation Potential Th rough Operational Improvements 216 14.7 Comparison of Investment Options—Implications for Cost Recovery 217

15.2.1 Private Equity Deals in Indian Water Sector 236 15.2.2 Market Capitalization of Global Water Companies 237

16.1 Daily Hours of Water Supply 241 16.2 Select Indicators, 2008 243 16.3 Experience with PPPs in the Water Sector in India up to the Mid-2000s 249 16.4 Water Service Performance Indicators for Select Cities 250

18.1 Estimates of Sectoral Water Demand in India 275 18.2 Wastewater Generation and Water Use by Diff erent Industries in India, 2004 275 18.3 Industrial Water Use Productivity for a Group of Select Countries, 2000 276 18.4 Shadow Price of Water 277 18.5 Mean of Cross and Own Indirect Price Elasticity of Input Demands 278 18.6 Price Elasticity of Demand for Water in Selected Countries 278

19.1 Wastewater Treatment Capacity in Urban Areas in India, 2008 287 19.2 Alternative Estimates of Costs of Water Pollution 289 19.3 Water Regulation Framework in India 290 19.4 Summary Evaluation of Economic Instruments for Water Quality Management 295

20.1 Wastewater Generation and Treatment Capacity in Urban Centres 300 20.2 Wastewater Generation from Urban Centres, Projections for 2051 301 20.3 STP—O&M and Power Costs 302

21.1 Estimated Range of Costs for Producing Secondary Level STW 316 21.2 Per capita Network and Treatment Costs for Sewage 317 21.3 MFL and RCF Current Total Treatment Costs 318 21.4 Levelized Pipeline Costs 319 21.5 O&M Costs of Freshwater Supply 320 21.6 Comparative Cost of Producing STW and Freshwater 320

23.1 Scarcity Value of Water and Average Water Use for Rice in the Cauvery Basin Districts in Karnataka, 1980–1 to 2000–1 343 23.2 Scarcity Value of Water and Water Use for Rice in the Select Cauvery Basin Districts in Tamil Nadu, 1987–8 to 2000–1 344

Tables, Figures, and Boxes xi

24.1 Capital and Operation & Maintenance (O&M) Expenditure on and Availability of Water Supply, All Cities 352 24.2 Capital and O&M Expenditures on and Availability of Water Supply, Non-Municipal and Municipal Provider Cities 353 24.3 Capital and O&M Expenditures on and Availability of Water Supply, Cities with and without Octroi 354 24.4 O&M Expenditures on Water Supply, Cities with and without Octroi 354 24.5 Capital and O&M Expenditures on and Availability of Water Supply, Cities by Population Growth 355 24.6 Random Eff ects Estimation of Expenditure on (Net) Water Supply 357 24.7 Output Elasticity of Cost and Returns to Scale 357 24.8 Predicted and Actual Expenditures 357 24.9 Current Water Tariff Structure for Metered Water Connections 358

26.1 Code 1–Opportunity Map 372 26.2 Code 2–Opportunity Map 373 26.3 Code 3–Opportunity Map 374

27.1 Progress in Development of Rural Infrastructure during Five Years, 2007–12 379 27.2 Presumptive Loss of Spectrum Allocated to 122 New UAS Licences and 35 Dual Technology Licences in 2007–8 381 27.3 Traffi c Projection, Capacity Estimation, and Proposed Investments for Ports in India 387 27.4 Status of Tariff Revision in States/Union Territories at the end of 2009 391

Figures 1.1 Major River Basins in India 5 1.2 Existing Multi-disciplinary Approach for Water Resource Management in A River Basin 13

2.1 Water Resources System 20 2.2 Block Diagram Showing the Procedure for Climate Change Impact Assessment 21 2.3 Flow Duration Curve for Mahanadi River at Hirakud (2045–65) 22 2.4 River Water Quality in Response to Climate Change 23

3.1 Ganges–Brahmaputra–Meghna Basins 30

6.1 Accelerating Investment and Decelerating Irrigation Benefi ts 74

7.1 Sources of Irrigation in India 97

8.1 Water Resource Wealth of India 119 8.2 An Example of the Institutional Arrangement for Water Development 124

9.1 Institutional Structure Planned for PIM in Andhra Pradesh 138 9.2 Th e Conceptual Framework for Studying Adaptiveness in Water Institutions 142

xii Tables, Figures, and Boxes

11.1 Projected Population Figures for Components of Hyderabad Urban Agglomeration (2001–21) 164 11.2 Growth Rate of Urban Population in Gurgaon 165 11.3 Urbanization in Gurgaon District 165 11.4 Sector-wise Percentage Gross Groundwater Draft, in four blocks in Gurgaon, 2004 169

12.1 IDWA for Indian States 182 12.2 IDWA for Chinese Provinces 183

13.1 Vicious Cycle of Issues with Infrastructure Service Provisioning 200

14.1 Vicious Circle of Poor Service Delivery 213 14.2 Five Year Plan Allocation for Urban Water Supply Sector 213 14.3 Urban Population Covered by PPP Contracts in Water Supply 218

15.2.1 Schematic of Typical Water Cycle 235 15.2.2 Schematic of Urban Water Supply 238

16.1 Requirements for Effi cient Governance of Water 241 16.2 Successful Water Projects since the Mid-2000 249 16.3 Cities With 24×7 Water Supply Projects Underway 252

19.1 Trend of Biochemical Oxygen Demand (BOD), 1995–2009 286 19.2 Growth of Water Pollution Monitoring Network in India 287 19.3 Environmental Regulations in India 289 19.4 Formal Environmental Regulations in India 290 19.5 Informal Environmental Regulation in India 293

21.1 Treatment Technology and Reuse Standards 315

23.1 Average Annual Marginal Cost of Water for Growing Rice in Karnataka 342 23.2 Movement of Marginal Cost of Water for Rice in the Cauvery Basin in Tamil Nadu, 1980–1 to 2000–1 343

27.1 Infrastructure Investments in India 380 27.2 Share of Private Sector in Infrastructure Development as a Proportion of GDP 381 27.3 New Road Length Awarded for National Highways 384 27.4 Status of National Highway Development Programme as on 31 March 2011 384 27.5 Capacity Increase at Indian Ports 386 27.6 Share of Minor Ports in Traffi c Handling in India 386 27.7 Operating Ratio of Indian Railways 388

Boxes 1.1 Th e Brahmaputra Board 14 1.2 Th e Murray-Darling Basin Authority 15

2.1 GCMs and Hydrologic Models 19

Tables, Figures, and Boxes xiii

4.1 Equity, Access, and Allocation 46 4.2 Contending Water Uses 47 4.3 Privatization 50 4.4 Babhli Water Confl ict: Less Water, More Politics 52

5.1 Legal Battle over Groundwater between a Panchayat and a Soft Drink Major:Intriguing Issues in Water and Democracy 65

7.1 Groundwater Recharge in Khopala 109 7.2 Sodhala Tube Well Partnership and Water Markets in Kansa Village 111

9.1 Traditional Water Management Practices in the Himalayan Valley of Lahaul (by Medhavi Sharma and Vasundhara Dash) 135

10.1 National Rural Drinking Water Programme 157

11.1 Water Security Concerns in Mallampet 168

14.1 Revenue Increase Potential through Operational Interventions—A Few Examples 216 14.2 Service Level Benchmarking—From Concept to Implementation 221 14.3 Th irteenth Finance Commission Report—Role of Service Level Benchmarking 222

20.1 Sewage Irrigated Vegetable Production: Water Reuse or Abuse 303 (by Palash Srivastava)

26.1 Th e GWP Toolbox and the NWM: Strength Alignment Approach 371

It may well be true that the most bitter confl icts in the next fi fty years will not be over oil but water. Already, almost a billion people in the world live without access to clean water. Th e sustainability of human development is being threatened by the growing scarcity of water. Climate change is likely to worsen the situation. Water will increasingly dominate national and international politics and power. It is this thirst for water that may become critical for ensuring political, social, and economic stability. How we manage this valuable resource is, therefore, crucial for our future. An eff ective and just policy would need to address several questions. How much is available, and to whom? Who pays, and at what price? How accessible are the formal, regulated water supply systems to the poor? At present, a perverse practice operates in the water market: the poorer you are, the less you get and the more you pay. What is equitable? What is economically viable, and socially as well as legally acceptable? Answers to these questions are complex. John F. Kennedy once said, ‘Anyone who can solve the problems of water will be worthy of two Nobel prizes—one for peace and one for science.’ India, which accounts for one-sixth of the world’s population, already faces water stress that is likely to exacerbate in future. Unsustainable agricultural practices, industrial pollution, and poor civic planning have further decreased the per capita availability of utilizable water. Water shortages will not only severely restrain the nation’s ability to sustain its economic growth but also lead to food shortages and more confl icts, with negative social and political consequences. Urgent action is required to manage our water resources in a coherent way. Th e India Infrastructure Report (IIR) 2011 focuses on the theme of ‘Water—Policy and Performance for Sustainable Development’. Th e Report evaluates a range of institutional, legal, and regulatory frameworks that operate in the sector, at the international, national, state, and local levels. Th is Report seeks to evolve an appropriate policy framework from the perspective of rights, entitlements, and confl ict resolution mechanisms. It proposes a major reorientation of public irrigation management, more emphasis on localized water resource development, better coordination among institutions in the planning and delivery of water services, and greater use of market mechanisms in the management of water use. Demand management needs more attention which, coupled with technological solutions, off ers immense possibilities in improving effi ciency in water use, in recycling wastewater, and in its conservation. It is clear that there needs to be a radical change in our approach to water. I hope the issues and suggestions in this Report—the tenth in the series of IIR—will be considered in the current preparation of a comprehensive new framework for the delivery of sustainable water services. I also hope that it will create greater awareness of the looming water crisis, and prompt actions to address it at all levels of society. I would like to thank the authors, the editors, and all those who have contributed to the production of this Report.

October 2011 Rajiv B. Lall

Foreword

Water scarcity is among the main problems that the world faces today. India is no exception, as it grapples with the problem of water shortage in many of its regions. In fact, in another twenty years, half of our demand for water could remain unmet if the present pattern of demand and supply continues. Recent catastrophes, such as the fl oods in Odisha that inundated over a thousand villages and the earthquake in Sikkim that raised critical questions about the prudence of large hydel projects in fragile ecological regions, have highlighted the crucial nature of water resource management. After having focused on ‘land’ and ‘infrastructure development in the low carbon economy’ in the previous two India Infrastructure Reports, ‘water’ was the most appropriate theme for the India Infrastructure Report (IIR) 2011. We are grateful to Ritu Anand for proposing this theme and also spending hours with us conceptualizing the framework for this Report. Water resource management is a theme that evokes multiple views from policymakers, environmentalists, non-governmental organizations, technocrats, hydrologists, and multilateral institutions. Our challenge was to weave together these multiple perspectives in a theme which would not only distinguish this Report from the plethora of other existing reports but would also provide a platform to debate and assimilate them. Initial discussions with Subodh Wagle provided critical inputs for the theme, which was set as ‘Water—Policy and Performance for Sustainable Development’. We would like to thank all those who responded to our ‘call for papers’ and submitted them for inclusion in the IIR 2011. We would also like to express our gratitude to all authors who presented their papers during the Writers’ Workshop held at Mumbai on 17–18 February 2011. Th e deliberations at the workshop helped in shaping the fi nal report. Special thanks are due to Abhay Kantak, Ramakrishna Nallathiga, Gopal Krishna Sarangi, Sunder Subramanian, Th ilak Babu Gottipati, Anupam Rastogi, K. Sreelakshmi, Srinivas Chary, Ritu Anand, Kaushik Deb, Kunal Katara, and Sambit Basu for their comments and invaluable inputs dur-ing the workshop. We would also like to thank Navroz K. Dubash for his invaluable comments on one of the papers. Th is Report would not have been possible but for various authors, who have made major contributions by not only preparing their own papers but also by helping with peer reviews of other papers. Our sincere gratitude to all the authors who have responded patiently to various editorial requests time and again. We would like to thank Rajiv B. Lall, Managing Director and CEO, IDFC Ltd, for his unstinted support and encouragement to the publication of IIR 2011. Th e Policy Group at IDFC provided the much needed organizational support. Th e untiring eff orts of Kaushik Deb, Pritika Hingorani, Sambit Basu, and Ranesh Nair helped us in bringing out the Report. We would also like to acknowledge the assistance that we received from Bharati Sawant who tirelessly, and with precision, coordinated with the authors and Oxford University Press on a variety of issues, and undertook

Acknowledgements

a host of other tasks as an executive assistant as well as project assistant for ensuring the smooth progress of the project. Th e immense support that we received from the editorial team at Oxford University Press helped us in the timely completion of the Report. We sincerely thank them for their support, and also for accommodating the sometimes exacting demands made of them. We would like to thank all our colleagues at IDFC who provided organizational and administrative support.

Piyush Tiwari and Ajay Pandey

xviii Acknowledgements

Ajay Pandey, Professor, Indian Institute of ManagementAnjal Prakash, Senior Fellow, SaciWATERsAnju Gaur, Water Resources Specialist, Th e World Bank Bhanoji Rao, Research Associate, Institute of Water Policy, Lee Kuan Yew School of Public Policy, National University of SingaporeChanda Gurung Goodrich, Executive Director, SaciWATERs D.T.V. Raghu Ramaswamy, Chief Executive Offi cer, Infrastructure Development Corporation (Karnataka) LimitedJ.S. Kamyotra, Member Secretary, Central Pollution Control BoardK.J. Joy, Senior Fellow, Society for Promoting Participative Ecosystem Management (SOPPECOM)Kala Seetharam Sridhar, Senior Research Fellow and Head, Public Policy Research Group, Public Aff airs CentreM. Shah Alam Khan, Professor and Director, Institute of Water and Flood Management Bangladesh University of Engineering and TechnologyM.N. Murty, Professor (Rtd.), Institute of Economic Growth, DelhiManisha Gulati, Independent Consultant, Energy & InfrastructureMarie-Hélène Zérah, Senior Research Fellow, Centre de Sciences Humaines (deputed from Institute of Research for Development, Paris)Mashfi qus Salehin, Professor, Institute of Water and Flood Management Bangladesh University of Engineering and TechnologyMedhavi Sharma, Research Associate, SaciWATERs (South Asia Consortium for Interdisciplinary Water Resources Studies)Mingxuan Fan, Research Associate, Institute of Water Policy, Lee Kuan Yew School of Public Policy, National University of SingaporeNeeraj Vagholikar, Member, KalpavrikshNilanjan Ghosh, Senior Vice President and Head, Research & Strategy, Multi Commodity Exchange of India LimitedOm Prakash Mathur, Distinguished Professor of Urban Economics, National Institute of Urban Aff airs

Contributors

P.P. Mujumdar, Professor, Indian Institute of SciencePalash Srivastava, Director, Infrastructure Development Finance CompanyPhilippe Cullet, Professor of International and Environmental Law, School of Law, School of Oriental and African Studies (SOAS), University of LondonPiyush Tiwari, Director, Policy Group, Infrastructure Development Finance CompanyPranjal Deekshit, Senior Research Associate, Resources and Livelihoods Groups, PRAYAS, Pune Prasad Gadkari, Director, IDFC Private Equity Co. Ltd. Pritika Hingorani, Associate Vice President, Policy Group, Infrastructure Development Finance CompanyPriyanie Amerasinghe, Senior Researcher, International Water Management InstituteR.M. Bhardwaj, Senior Scientist, Central Pollution Control Board Ranesh Nair, Senior Consultant, Policy Group, Infrastructure Development Finance Company S.R. Ramanujam, Director, Samatva Infrastructure AdvisorsSachin Warghade, Senior Research Associate, Resources and Livelihoods Group, PRAYAS, Pune Sarika Rachuri, Senior Manager, Takshashila Academia of Economic ResearchShishir Maheshwari, Associate, IDFC Private Equity Co. Ltd.Sreoshi Singh, Research Fellow, SaciWATERSSubodh Wagle, Professor, School of Habitat Studies, Tata Institute of Social Sciences (TISS), MumbaiSuhas Paranjape, Senior Fellow and Secretary, Society for Promoting Participative Ecosystem Management (SOPPECOM)Suman K. Apparusu, Managing Trustee, Change Planet Partners Climate Innovation Foundation Surender Kumar, Professor, Department of Business Economics, University of DelhiSuresh Chand Aggarwal, Professor, Department of Business Economics, University of DelhiSylvy Jaglin, Professor, LATTS (Laboratoire Techniques, Territoires et Sociétés), ENPC (Ecole Nationale des Ponts et Chaussées)Tejas Pol, Senior Research Associate, Resources and Livelihoods Groups, PRAYAS, Pune Tushaar Shah, Senior Fellow, International Water Management Institute, GujaratV. Sathyanarayana, Chief Legal Counsel, Infrastructure Development Corporation (Karnataka) LimitedVaibhav Bhamoriya, Assistant Professor, Indian Institute of Management, AhmedabadVandana Bhatnagar, Urban Watsan Specialist, Water Sanitation Program Vasant P. Gandhi, Professor, Indian Institute of Management, AhmedabadVasundhara Dash, Research Associate, SaciWATERs (South Asia Consortium for Interdisciplinary Water Resources Studies)Videh Upadhyay, Lawyer, Independent Consultant and a Counsel, Delhi Pollution Control Committee, Government of India, New Delhi.Vishal Narain, Associate Professor, School of Public Policy and Governance, Management Development Institute

xx Contributors

AAI Airports Authority of India ACUACAR Aguas de CartagenaADB Asian Development BankAERA Airports Economic Regulatory Authority AP Andhra PradeshARWSP Accelerated Rural Water Supply ProgrammeASP Activated Sludge ProcessAT&C Aggregate Technical and Commercial AWCO Alexandria Water Company AWDO Asian Water Development Outlook BCM Billion Cubic MetreBFA Benefi ciary Farmers’ AssociationBIS Bureau of Indian StandardsBOD Biochemical Oxygen DemandBOOT Build-Own-Operate-TransferBOT Build-Operate-TransferBPO Business Process OutsourcingBSNL Bharat Sanchar Nigam Limited BUET Bangladesh University of Engineering and Technology BWSSB Bangalore Water Supply and Sewerage BoardCAD Command Area Development AuthoritiesCADA Command Area Development AgencyCAEAC Civil Aviation Economic Advisory Council CAG Comptroller and Auditor General CAZRI Central Arid Zone Research InstituteCBI Central Bureau of Investigation CCRCP Chennai City River Conservation Project CDP City Development PlanCEA Central Electricity AuthorityCEPT Center for Environmental Planning and TechnologyCETP Common Effl uent Treatment PlantCGWA Central Ground Water AuthorityCGWB Central Ground Water Board

Abbreviations

CLINZI Climate’s Long-Term Impact on New Zealand InfrastructureCMC Chandrapur Municipal CouncilCMW Chennai Metrowater CMWSSB Chennai Metro Water Supply and Sewerage BoardCOD Chemical Oxygen DemandCPCB Central Pollution Control Board CPD Centre for Policy DialogueCPR Centre for Policy ResearchCRIDA Central Research Institute for Dryland AgricultureCSE Centre for Science and Environment CSIDC Chhattisgarh State Industrial Development CorporationCVM Contingent Valuation Method CWB City Water BoardsCWC Central Water CommissionDALY Disability Adjusted Life Years DBFO Design-Build-Finance-Operate DC Distributory CommitteeDDP Desert Development ProgrammeDDWS Department of Drinking Water Supply DERC Delhi Electricity Regulatory Commission Dfi D Department for International Development—UKDHBVN Dakshin Haryana Bijli Vitran NigamDJB Delhi Jal Board DM DemineralizationDO Dissolved OxygenDoT Department of Telecommunications DPAP Drought Prone Areas ProgrammeDPC District Planning CommitteesDPR Detailed Project ReportEAC Expert Appraisal Committee EAI Expressway Authority of India ECB External Commercial Borrowings ED Enforcement Directorate EESL Energy Effi ciency Services Ltd EFCs Environmental and Forest Clearances EIA Environmental Impact Assessment EMU Electrical Multiple Unit EPA Environment Protection Act EPC Engineering, Procurement, and Construction EPD Empreses Publicas Distritales ESCerts Energy Savings Certifi cates ETP Effl uent Treatment PlantFAO Food and Agriculture Organization FBR Aerobic Fluidized Bed ReactorsFMIS Farmer Managed Irrigation SystemsFPR Flood Prone RiversFRL Full Reservoir Level

xxii Abbreviations

FYP Five Year PlanGAC Granulated Activated CarbonGAP Ganga Action Plan GBM General Body MeetingGBM Th e Ganges, the Brahmaputra, and the Meghna GBWSSB Greater Bangalore Water Supply and Sewerage BoardGCM General Circulation ModelGDA Ganges Dependent AreaGDP Gross Domestic ProductGECIS GE Capital International ServicesGEMS Global Environment Monitoring SystemGHMC Greater Hyderabad Municipal CorporationGIZ Gesellschaft für Internationale Zusammenarbeit–Germany GLOF Glacier Lake Outburst Floods GoB Government of BiharGoI Government of India GoM Government of MaharashtraGPS Global Positioning System GRP Glass Reinforced PlasticGSLDC Gujarat State Land Development CorporationGWDT Godavari Water Disputes TribunalGWIDC Gujarat Water Infrastructure Development CompanyGWP Global Water Partnership GWRDC Gujarat Water Resource Development CorporationHMWSSB Hyderabad Metropolitan Water Supply and Sanitation BoardHPEC High Powered Expert CommitteeHRT Hydraulic Retention TimeHUA Hyderabad Urban AgglomerationHUDA Haryana Urban Development AuthorityICOLD International Commission on Large Dams ID Irrigation DepartmentIDF Intensity-Duration-FrequencyIDWA Index of Drinking Water AdequacyIEB Institution of Engineers Bangladesh IFC Infrastructure Finance Companies IFI International and Bilateral Financial InstitutionsIKPP PT Indah Kiat Pulp and Paper IMD India Meteorological Department IMT Irrigation Management TransferI–O Input–Output IPCC Intergovernmental Panel on Climate ChangeIRA Independent Regulatory AuthorityISB Indian School of BusinessISESCO Islamic Educational, Scientifi c and Cultural OrganizationISM Irrigation Service MarketISP Irrigation Service ProvidersIT Information Technology

Abbreviations xxiii

IT/ITES Information Technology/IT Enabled ServicesIWDP Integrated Wastelands Development ProgrammeIWK Indah Water KonsortiumIWMI International Water Management InstituteIWMP Integrated Watershed Management ProgrammeIWRM Integrated Water Resource Management JET Joint Expert Team JICA Japanese International Cooperation AgencyJMP Joint Monitoring ProgrammeJNNURM Jawaharlal Nehru National Urban Renewal MissionJPC Joint Parliamentary Committee JRC Joint River CommissionJSTC Joint Standing Technical Committee JUSCO Jamshedpur Utilities and Services CompanyKL KilolitreKPO Knowledge Process OutsourcingKT Kolhapur TypeKUIDFC Karnataka Urban Infrastructure Development Finance CompanyKUWSDB Karnataka Urban Water Supply and Drainage BoardKWA Kerala Water Authority LBP Lower Bhavani ProjectLIDAR Light Detection and Ranging LPCD Litres Per Capita Per DayLRMC Long Run Marginal Cost LUS Land Use SurveyMBI Market Based InstrumentMBR Membrane BioreactorMC/MPLAD Municipal Councillor/Member of Parliament Local Area DevelopmentMCH Municipal Corporation of HyderabadMCM Million Cubic MetreMDG Millenium Development GoalsMDPE Medium Density PolyethyleneMFL Madras Fertilizers Limited MGNREGA Mahatma Gandhi National Rural Employment Guarantee Act MINARS Monitoring of Indian National Aquatic Resources MINAS Minimal National Standards MJP Maharashtra Jeevan PradhikaranMLD Million Litres Per DayMNP Mobile Number Portability MoA Memoranda of AgreementMoCA Ministry of Civil AviationMoCI Ministry of Commerce & IndustryMoEF Ministry of Environment and Forests MoR Ministry of Railways MoRD Ministry of Rural Development MoU Memorandum of UnderstandingMoUD Ministry of Urban Development

xxiv Abbreviations

MoWR Ministry of Water ResourcesMPRA Major Port Regulatory Authority MRO Maintenance, Repair and Overhaul MSP Multi-Stakeholder PlatformMTNL Mahanagar Telephone Nigam Limited MWA Metropolitan Waterworks Authority MWRRA Maharashtra Water Resources Regulatory AuthorityNABARD National Bank for Agriculture and Rural DevelopmentNAC National Academy of ConstructionNAPCC National Action Plan on Climate Change NBWL National Board for Wildlife NCAER National Council of Applied Economic ResearchNCIWRD National Commission on Integrated Water Resources Development NDA National Democratic AllianceNDMA National Disaster Management AuthorityNDRC National Development and Reform CommissionNEAA National Environmental Appellate Authority NEAMA National Environmental Appraisal and Monitoring Authority NEEPCO North-eastern Electrical Power Corporation LtdNESL Nagpur Environmental Services LtdNESRC North-eastern Social Science Research Centre NEWRA North-east Water Resources Authority NGO Non-government OrganizationNH National Highway NHAI National Highways Authority of India NHDP National Highway Development Programme NIJNNURM New Improved Jawaharlal Nehru National Urban Renewal MissionNMEEE National Mission for Enhanced Energy Effi ciency NMMC Navi Mumbai Municipal Corporation NPA Non-Performing AssetsNRAA National Rain-fed Area AuthorityNRDWP National Rural Drinking Water ProgrammeNRLP National River Linking ProjectNRW Non-Revenue WaterNSM National Solar Mission NSSO National Sample Survey OrganizationNTADCL New Tiruppur Area Development Corporation LimitedNTPC National Th ermal Power CorporationNWDA National Water Development Agency NWDPRA National Watershed Project for Rain-fed AreasNWP National Water Policy NWSC National Water and Sanitation Corporation O&M Operation and Maintenance OFD On-farm DevelopmentOFWAT Offi ce of Water ServicesOMC One Man Committee PAP Parambikulam Aliyar Project

Abbreviations xxv

PAPs Project-Aff ected PersonsPAs Protected AreasPAT Perform, Achieve and TradePC Planning CommissionPC Project CommitteePCA Pollution Control AgencyPE Private EquityPHED Public Health and Engineering DepartmentsPIL Public Interest LitigationPIM Participatory Irrigation ManagementPLUS Performance Led Urban ServicesPPA Power Purchase AgreementsPPCL Pragati Power Corporation LimitedPPPs Public–Private Partnerships PPWSA Phnom Penh Water Supply AuthorityPRI Panchayati Raj InstitutionsPROOF Public Record of Operations and FinancePSP Private Sector ParticipationPUB Public Utilities Board PURA Provision of Urban Amenities in Rural AreasR&R Resettlement and Rehabilitation RBC Rotating Biological ContactorRBI Reserve Bank of India RBO River Basin Organization RCF Rashtriya Chemicals and Fertilizers Limited RCOM Reliance Communications RECs Renewable Energy Certifi cates RGNDWM Rajiv Gandhi National Drinking Water MissionRO Reverse OsmosisRoR Run-of-the-river RTI Right to Information SANDRP South Asia Network on Dams, Rivers & People SBR Sequential Batch Reactor SCARP Salinity Control and Reclamation ProgrammeSEB State Electricity BoardSEC Specifi c Energy Consumption SES Socio-Ecological Systems SEZ Special Economic ZoneSLB Service Level BenchmarkingSPCB State Pollution Control BoardSPV Special Purpose VehicleSRMC Short Run Marginal CostSRSP Sriram Sagar ProjectSRT Solid Retention TimeSS Suspended SolidSSNNL Sardar Sarovar Narmada Nigam LimitedSTP Sewage Treatment Plant

xxvi Abbreviations

STW Treated Sewage WaterSWC Siza Water Company SZWRB Shenzhen Water Resource Bureau TAMP Tariff Authority for Major Ports TERI Th e Energy and Resource InstituteTFC Th irteenth Finance CommissionTNUDF Tamil Nadu Urban Development FundToR Terms of Reference TRAI Telecom Regulatory Authority of India TSS Total Suspended Solids TTSL Tata Teleservices Limited TUFIDCO Tamil Nadu Urban Finance and Infrastructure Development CorporationUA Urban AgglomerationUAS Unifi ed Access Services UASB Up-fl ow Anaerobic Sludge BlanketUFW Unaccounted For Water UGD Underground DrainageUIDSSMT Urban Infrastructure Development Scheme for Small and Medium TownsUIP Ultimate Irrigation Potential ULB Urban Local BodyUMPPs Ultra Mega Power projects UN United NationsUNEP United Nations Environment ProgrammeUNESCO United Nations Educational, Scientifi c, and Cultural Organization UP Uttar PradeshUPJN Uttar Pradesh Jal NigamUPWMRC Uttar Pradesh Water Management and Regulatory CommissionUSAID United States Agency for International DevelopmentUT Union TerritoriesUWSS Urban Water Supply SectorVGF Viability Gap FundVLR Visitor Location Register VWSC Village Water Supply CommitteeWA Water AuthorityWAPCOS Water and Power Consultancy Services WARPO Water Resources Planning OrganizationWCD World Commission of Dams WDR World Development ReportWEF World Economic Forum WHO World Health OrganizationWRIS Water Resources Information System WRS Water Resources StrategyWSD Watershed DevelopmentWSP Water and Sanitation ProgramWSP Waste Stabilization PondsWSPF Water and Sanitation Pooled FinanceWSS Water Supply and Sanitation

Abbreviations xxvii

WSSB Water Supply and Sanitation BoardWSTR Wastewater Storage and Treatment ReservoirsWUA Water Users AssociationWWAP World Water Assessment ProgrammeYAP Yamuna Action Plan

xxviii Abbreviations