Panel rules out uniform irrigation charges

The high-level panel set up by the National Development Council (NDC) to go into agriculture and related issues has ruled out a uniform formula for fixing charges for irrigation water throughout the country.

It has, instead, suggested setting up independent state level regulatory authorities for rationalising water rates in each state.

At present, water charges vary from state to state, as also from project to project and crop to crop. These have not been revised for years in many states.

"The water rates being charged at present are very low and are not able to meet even the operation and maintenance costs of the irrigation projects, thereby adversely affecting the availability of resources for efficient management of irrigation systems'', says the report of the NDC sub-committee on agriculture and related issues in its report submitted to the Planning Commission in May.

The sub committee was headed by agriculture and food minister Sharad Pawar. The report has categorically stated that a uniform formula for water pricing for the entire country would have no practical value. It has favoured setting up of independent regulatory authority in each state for rationalisation of water rates.

It has said that a generally accepted hypothesis in irrigation pricing is that the charges should be adequate to cover at least the annua loperational and maintenance costs of the irrigation projects. The water rates should be fixed on the basis of the volumetric supply of water.

However, the panel has recognised that there are problems in quantification of water usage and collection of information to estimate and monitor benefits and costs. This makes the task of fixing water charges a complex one, the report maintains.

The national water policy adopted in 2002 stipulates that the water charges for various uses should be fixed in such a way that they cover at least  the operation and maintenance charges of providing the service initially and a part of the capital cost 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", the policy had stated.

The centre is using the assistance being provided to the states under the Accelerated Irrigation Benefit Programme (AIBP) as a tool to prompt the states to rationalise water charges and improve the efficiency of irrigation services and undertake other needed reforms in the irrigation sector.

The states, at their level, can consider putting in place policies to encourage irrigation project authorities take measures for enhancing water-use efficiency. They can also improve recovery of water charges by offering concessions and other incentives.

The panel has said that the payment of central assistance to the states should be linked with the formation of water users' association, making it obligatory for the farmers to contribute 10 per cent of the cost of the works.

The irrigation works should be handed over to the water users' associations giving more emphasis to participatory approach after ensuring formulation and enactment of suitable legislation by various states", says the report.

It adds that the project authorities should be made responsible for better discipline and effective management of water resources with assured supply of water in bulk to the users' associations.