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Monday
February 13,  2006

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   Large Unorganized Market for Water

 

Increasing populations, depleting water tables due to free electricity from states to farmers, and irregular power has created a large unorganized market for water. With an estimated market size of Rs.50 billion, water costs anywhere from Rs. 3 per hour to Rs. 45 per hour. Water tankers supply water at Rs. 200-400 for 8,000 liters. Most of those who sell water are landlords with large holdings, politicians, and rich farmers and the recipients are usually small farmers, hotels, apartment complexes, and commercial buyers. While in the case of minerals, the Constitution clearly says that the state owns the water; it is ambiguous on who owns water-- the state or those who find water underground and able to pump it out. Maharashtra has already passed Water Resources Regulatory Act 2005 that would require water sellers to seek the state's permission. Karnataka, Rajasthan, and Himachal Pradesh have also enacted a law with regulatory mechanisms to control indiscriminate use of ground water. But none of these laws or Federal policy deals with waterways, rivers, lakes, and ponds that span state boundaries. There are also differences in how states see water, their laws to regulate it, and how the implement them.

 

 

 

 

 

 



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