Delhi may rope in private sector for water distribution, treatment

After years of struggle to solve its water woes on its own, Delhi seems to be gearing up to embrace the private sector.

The Delhi government has indicated that it is considering joint ventures with various private companies for treatment and distribution of water. The government had a few years ago handed over distribution of power in private hands, an exercise that has met with reasonable success.

Recently, Delhi Chief Minister Sheila Dikshit also hinted at overhauling the water distribution system on the lines of electricity distribution that the city government carried out in 2002.

The city's water utility Delhi Jal Board is looking at allocating treatment and distribution to at least four or five separate units that will take care of command areas under Wazirabad, Chandrawal, Sonia Vihar, Nangloi, Haiderpur and Bhagirathi treatment plants.

DJB, which also looks after water distribution, has been hauled up in recent months over complaints ranging from water contamination to erratic supply. The civic agency had last year outsourced the jobs of water billing and installation of water meters to private entities in an efforts to make the services more efficient.

Delhi is slowly moving towards roping in the private sector in almost all aspects of water supply. Earlier this year, DJB given a long-term contract to SPML, one of India's leading companies in the water sector, for distribution of water to some areas in the city through private water tankers.

For years now, the city has been reeling under water shortage. DJB is only able to supply 800 million gallon per day (MGD) water as against the average demand of potable water of around 1,100 MGD.

Though Dikshit said reforms on the city’s water distribution system can only be brought after a consensus is reached on the issue, there has been apprehension in certain quarters regarding privatization of water. After water billing was handed over to private players, there had been several complaints about inflated water bills.

The naysayers seem to be holding on to that one example. They should realise that roping in the private sector to bring in efficienies and management expertise in certain areas does not mean privatisation.

For now, the CM has allayed fears that water management would not be privatized. Instead the government would enter into JVs with private companies or form smaller units under the government.

It is a matter of time before it becomes clear if the well-meaning Dikshit has taken yet another positive step!