Scheme for water reforms on anvil

Urban water supply and sanitation are expected to be the focus of a new Rs 2,500-crore programme in next year's Budget. The programme, aimed at ensuring better quality of water and its increased supply, would cover all the towns and cities.

The programme would also aim to put in place improved standards of operation and management in the water supply and sanitation sector.

Currently, only towns with a population less than 20,000 and cities with a population of over 1 million are covered under central schemes for water supply.

Urban water supply has been identified as a focus area in the national common minimum programme of the UPA government.

Most programmes in this area are handled by states, except for the Accelerated Urban Water Supply Programme (AUWSP), which is currently a centrally-sponsored scheme for small towns with a population less than 20,000.

It is proposed that this scheme be expanded to include all towns and cities irrespective of their population, and to include a component on sanitation as well.

The current list of programmes on urban utilities covers mega cities having a population of over a million and smaller ones with a population of less than 20,000, but leaves out cities like Hyderabad. The expansion of the AUWSP was expected to correct the anomaly, said officials.

Emphasis was laid on urban water supply in the mid-term review of the Tenth Plan. The draft review said the supply of safe drinking water and basic sanitation were vital for achieving the goal of health for all.

Revamping the sector, however, depends on the willingness of state governments and urban local bodies to restructure water supply corporations, levy reasonable water tariffs, take up reforms in billing, accounting and collection, and become creditworthy in order to have access to market funding.

The draft review has suggested that states should increasingly depend on institutional finance to fund urban water supply and sanitation schemes. State budgetary support should be provided only to the extent required to meet the expenses that the institutional finance does not.

Water tariffs should be set in such a way so that they discourage excessive use of treated water. The appraisal has also recommended private involvement in the sector.