41-Groundwater Rights and Water Pricing Structure.

Abstract

In our country the rights of the land owner for groundwater withdrawals are not clearly defined. In the past such a measure was not necessary as there were few users and groundwater potential was adequate for them. For the last few decades rich farmers, influential industrialists, large multinational companies and big builders have withdrawn increasing volumes of ground water using powerful pumps and deeper wells. This has caused substantial lowering of the water table and consequently failure of neighbouring shallow tube wells. Some economically weaker users cannot afford relocation or deepening of their tube wells and are the worst sufferers of this phenomenon. Therefore the paper addresses the necessity of formulating administrative and legislative measures to protect the interest and groundwater rights of small farmers. Paper also focuses on the pricing structure of water which is intimately linked with ground water. Industrial organizations, big builders and rich farmers have the capacity to pay actual costs of water which may even allow generating some profits. A pricing structure should allow minimum supply of water to all users at a very reasonable cost. This is possible if slab system pricing structure is adopted where people from economically weaker section of society and small farmers who are normally using much smaller quantities of water can be charged at a subsidised rate; whereas for the big users with the increase in demand, the water price increases substantially. This also puts a desirable pressure on its less planned and poorly managed use, particularly by the affluent farmers. The paper suggests that the collective administrative and pricing measures may be a step in the right direction to ensure equitable distribution of water and fulfillment of the minimum requirement of all users.