Delhi moves to privatise water supply

Close on the heels of the hike in power tariffs which has led to a huge outcry, Delhi chief minister Sheila Dikshit yesterday dropped another bombshell that is feared to lead to rise in water prices.

According to Dikshit, the privatisation of water distribution system had become necessary and the government had decided to privatise water treatment plants across the national capital to ensure constant supply of water even at the cost of making an absolute necessity like water a bit costlier.

''Privatisation of water distribution system is definitely necessary in Delhi. We want to replicate the same model in Delhi Jal Board (DJB) that we have used in the privatisation of power distribution,'' said Dikshit, responding to media queries. She added, the Planning Commission had also given in-principle approval to the proposal.

As per Delhi government officials, the privatisation of Delhi's water distribution system would be a gradual process that would be tested in some areas before expanding it to the entire city. A couple of years back, the government had initiated water billing reforms and installation of meters with the help of IT major TCS.

The average demand for potable water in Delhi stands at around 1,100 mgd (million gallons per day) and with current DJB supplies of around 800 mgd water across the city after treatment of the raw water in its treatment plants. Around 40 per cent of the water is said to go waste, leading to acute shortage in hundreds of colonies in Delhi.

Meanwhile the move is likely to be opposed by the BJP.