Indian industry asks for legal framework for water sector

Just how important is water to India Inc became apparent recently when India's top industrial lobby group Confederation of Indian Industry (CII) recommended a 10-point agenda for inclusion in the national Water Policy being prepared by the Central government.

Trade lobbies like CII regularly make presentations to the Government, asking for a tweaking of tax rates here, or an anomaly in policy to be removed there. But, this is, perhaps, the first time that an agenda has been charted by the industry on the issue of water.

CII has asked for incentivising state governments to migrate water utilities towards greater financial sustainability and encouraging & implementing public private partnerships in urban water supply systems.

The recommendations assume importance not only as they come from a body that represents some of India's largest business houses as its members, but also for the issue itself.

Water is turning out to be what carbon was during the 1990s and thereafter. Indian industry has become efficient in handling carbon emissions, so much so that several Indian companies are actively trading in carbon credit trading.

However, it is going to take more efforts and a few years to become water-efficient.

CII has called for enacting an over-arching Water Act to signal water sector as an important policy priority, which will enable greater clarity on water rights and bring better participation of users and effective dispute resolution.

This will also encourage water efficiency and create an environment for regulating and conserving water resources – both groundwater and surface.

The recommendations by CII's National Committee on Water list down the recommendations under three broad heads -- policy clarifications, institutional framework and enhancing accountability.

The way ahead should be for the Indian government to unveil a Water Policy that encompasses these three heads, and some more, while Indian industry steps up efforts to reduce its water footprint.