People's Democracy

Stop Privatisation Of Water Supply In Delhi

Following is the text of the letter sent to the prime minister on September 23 by leaders of the Communist Party of India (Marxist), Communist Party of India, Forward Bloc and Revolutionary Socialist Party on the issue of privatisation of water supply in Delhi.

WE are writing to you regarding the impending privatisation of water supply in Delhi.  The Delhi Jal Board (DJB) is undertaking a Delhi Water Supply and Sewerage Project, partly funded by the World Bank, which will lead to 21 zones of the Jal Board being handed over to various private companies.  The World Bank-initiated project has raised a number of questions which have not been satisfactorily answered by the Delhi government, or, the Delhi Jal Board.    

The terms and conditions associated with the loan given by the World Bank are onerous and one-sided.   For instance, the conditions enable the Bank to suggest any modifications to the list of pre-qualified bidders.  The government is obliged to make such changes.  The consultancy contract decided in November 2001 showed blatant interference by the Bank. 

More pertinently, the experience of implementing such World Bank dictated privatisation of water supply around the world has been huge increases  in tariffs and deprivation of water for the poorer sections. In the case of Delhi, the cost of salaries for those who manage a zone (Rs 11 lakh per month) and the free writ given to the companies to spend on operational expenses and capital investments are certain to lead to massive tariff hikes.

The government invests close to Rs 1000 crores every year in the DJB and the World Bank loan amounts to only Rs 120 crores annually for a period of six years.  The government does not require such a small amount of money at a huge cost of interest payouts and one-sided terms and conditions.

We are enclosing a detailed note regarding the deleterious impact the water privatisation project will have on the citizens of Delhi.  They have already suffered the consequences of the privatisation of power supply in the capital. 

We request you, therefore, to intervene to see that the project is not implemented and the loan application to the World Bank withdrawn. After wide discussions, it will be possible to ensure a public water utility which is both efficient and accountable.