“Water is the oil of the 21st century.” Andrew Liveris, CEO of DOW Chemical Company (quoted in The Economist magazine, August 21, 2008)
In 2012 the Congress Government at the center made an important policy shift in its water policy when it allowed the semi privatization of water supply
According the the Hindu
QUOTE The Union government has begun consultations on a new National Water Policy that calls for privatisation of water–delivery services and suggests that water be priced so as to “fully recover” the costs of operation and administration of water-resources projects, documents available with The Hindu show.
Recently circulated to water experts for consultations, the 15-page draft National Water Policy suggests that the government withdraw from its role as a service provider in the water sector. Instead, it says, communities and the private sector should be encouraged to play this role. The proposals could mean sharp rises in the cost of water for both rural and urban users — an outcome the policy suggests will help curtail misuse of a precious but scarce resource.
In 2005, a World Bank paper made similar recommendations, arguing that “if India is to have sustainable economic growth, the role of the Indian water state must change from that of builder and controller to creator of an enabling environment, and facilitator of the actions of water users large and small.” The paper called for, among other things, “stimulating competition in and for the market for irrigation and water and sanitation services”. END QUOTE Source The Hindu Jan 2012
Water resources projects and services should be managed with community participation. Wherever the State Governments or local governing bodies so decide, the private sector can be encouraged to become a service provider in public private partnership model to meet agreed terms of service delivery, including penalties for failure
The descision to enter into lucrative Private Public partnership model was to be taken by State Governments and Local bodies (Muncipalities and Panchayats)
Although the decision to privatize water was taken by the Congress Government the new Modi Govt in 2014 was greeted with expectations of boom in the private water supply business See Indian private water sector looks to Modi for growth Politically well connected companies like Vishvaraj Infrastructure Ltd,owned by Arun Lakhani a close associated of BJP politician Nitin Gadkari has been bagging many water contracts all across India after the BJP came to power at the center. Its now raising $ 100mn to fund expansion In February 2016 Vishvaraj stated that it plans Rs 6000 cr investment in waste water projects
Arvind Kejriwals Magsaysay award citation says QUOTE Although Kejriwal sometimes takes on larger issues such as the successful 2005 campaign challenging a water-privatization plan for New Delhi, he has no plans to expand. ENDQUOTE
The no plans to expand was presumably no plans to expand the ant water privatization agitation Was Kejriwal given the Magsaysay and later large donations from Ford Foundation & other Western NGOs as a quid pro quo for not widening the Anti Water privatization campaign ?
The Cauvery Water Riots became a great excuse to go one up on mere Private Public partnership models” The media went to town with the story A strategic and eye catching burning up of many buses allowed the media to hyped up the story for all it was worth The BBC just played along with the Water Wars theme Why water war has broken out in India’s Silicon Valley – The Guardian too used the Water Waters term in its headline Angry clashes in Karnataka as India’s water wars run deep Both headlines completely ignored the strong political reasons for the ‘water wars”
Senior Journalist Madhavan Narayana who worked for 12 years in Reuters went a step further form simple PPPS He is now talking in terms of SPVs funded by Global agencies (read World Bank Goldman Sachs etc)
Narayanans tweet came from Vastergas Svergie Sweden Its not clear whether he was there on a private holiday or for work
Narayanans tweet fits perfectly with the Goldman Sachs “water view” of the world
Water scarcity and lack of access to clean water pose significant challenges around the world. These challenges are exacerbated by climate change, urbanization, and population growth. In many markets, aging or inadequate water and wastewater infrastructure are potential risks to sustainable growth efforts. We believe there is a compelling opportunity to harness markets to address these challenges.
We serve clients in this area through our Public Sector and Infrastructure team within the Investment Banking Division, and also co-invest alongside clients through our investing teams.
We will seek to facilitate private capital for much needed water infrastructure investments, including through well-designed Public-Private-Partnerships (P3s) .
We will look for opportunities to devise investment structures that can harness green infrastructure solutions as a complement to traditional infrastructure in meeting our water needs. For example, restoring forests, installing green roofs and increasing green space can help alleviate stormwater runoff while improving the health and resiliency of cities. Goldman Sachs Environment Market Opportunities Water
Privatizing the water supply in India is not just a lucrative business , it also serves as a great way of controlling entire societies cities towns etc as nothing can function without water