Financial and Physical Sustainability
Introduction
• Emphasis on the physical and financial sustainability of existing facilities
• Adoption of a rotational water distribution system and supply of water on a volumetric basis subject to certain ceilings and rational pricing
Rationale
- • Maintain the existing facilities with optimum finance and usage
Basic elements of design
• Regulation of water tariff/pricing, allocations, monitoring operations, reviewing performance, etc.
• Water tariff set at time bound cost-recovery resolving inter-country; inter-state; intra-State water-related disputes
• Water charges for various uses should be fixed to cover the operation and maintenance charges of providing the service initially and a part of the capital costs subsequently
• These rates should be linked directly to the quality of service provided
• The subsidy on water rates to the disadvantaged and poorer sections of the society should be well targeted and transparent
• Conservation incentives should be given
Potential challenges
• Prioritising water allocation and tariff
• Difficult to allocate charges
• Inadequate water tariff collection system
India experience
• Groundwater extraction when used for different purposes remains unaccounted in the tariff system and therefore, very minimal bill is generated for the water usage • Minimal collection of water tariffs/pricing
[Contributor: Deepshikha Sharma, PhD Scholar, TERI University, New Delhi, India]