India, New Delhi: water subsidies benefit the rich and not the poor
Updated - Friday 29 May 2009
Most residents of Sangam Vihar (pop. 400,000 - 700,000), a sprawling, mostly low-income, south-Delhi neighbourhood that city officials call unauthorised, aren’t connected to the network of state water utility Delhi Jal Board (DJB). As a result, there has been a growth of illegal, private water supply operations. One resident, Mr. Rashid Khan says he and his family depend on water piped twice a week by “a private contractor” into his small home. The contractor charges between Rs 300-500 (€ 4.50-7.50 = US$ 6.10-10.20) a month for a family, depending on its size, he says.
The water situation in Sangam Vihar is clearly an example of a paradox in urban water supply in India: the government subsidizes water supply but these are extended only to those that have metered connections, something that the poorest of the poor in cities do not have. This means, people such as Rashid, who earn about Rs 5,000 (€ 75 = US$ 102) a month, pay Rs 350 (€ 5.30 = US$ 7.20) a month for water, while people in affluent localities pay as low as Rs 100 (€ 1.50 = US$ 2) per month.
“It is a fact that it is the poor that are paying the most. But the payment is in distress, not by choice. In Delhi, there is no democratic distribution. There is no need-based distribution,” admits Delhi Jal Board chief executive officer Ramesh Negi. Also across Delhi, the water table has fallen by some 2-8 metres in the past decade, according to Centre for Science and Environment (CSE).
Usha P. Raghupathi, a professor at the National Institute for Urban Affairs, says most of the noise against increasing water tariffs is made by people who can afford to pay. Willingness to pay depends on how acute the need is. It is not the capacity to pay,” says Raghupathi.
Related news: Cambodia: potential of pro-poor water connection subsidies, Source Weekly, 18 Mar 2009
Web site: Delhi Jal Board
Contact: Ramesh Negi, CEO, Delhi Jal Board, tel.: +91-11-23544795 ; Prof. Usha P. Raghupath, National Institute for Urban Affairs, uraghupathi@niua.org
Source: Rahul Chandran, LiveMint.com, 02 May 2009
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