People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)


Vol. XXIX

No. 41

October 09, 2005

WATER PRIVATISATION IN DELHI

 

The Threat Remains: CPI(M)

 

THE withdrawal of the Delhi Jal Board’s loan application to the World Bank for privatisation of water supply is a victory for the people of Delhi and for all those, including the CPI(M), who have struggled against these moves, stated the CPI(M) Delhi state committee in a press release.

 

The Left parties, led by the CPI(M) had only recently written to the prime minister demanding scrapping of the World Bank-funded DJB privatisation project. The mounting protest against water privatisation has forced the Delhi government and the DJB to backtrack.

 

The CPI(M) state committee noted that the above step does not mean that their plans to privatise water have been abandoned. The CEO of DJB has stated that DJB will study and implement the recommendations of Price Waterhouse Coopers (PWC) regarding better management of the DJB. The PWC framework for better management essentially entails privatisation and huge increase in water tariffs! Statements from DJB officials suggest that the goal of privatisation is likely to be pursued through other means such as “management contracts” to private parties for different parts of the water treatment and distribution system.

 

The impact of such piecemeal privatisation can be judged from the notorious Sonia Vihar Plant set up by a French multinational with guaranteed exorbitant profits which is yet to become operational even while the government is accumulating a huge burden of debt against the original World Bank loan besides penalties due to the MNC under the dubious contract.

 

Neither has the “24X7 Scheme” been abandoned. All the Jal Board CEO is saying is that no foreign firm will implement it. He is silent on whether indigenous private players can be involved in future. As of now he suggests implementation of the scheme through plugging leakage with the help of DJB employees. Given the scarcity of water in Delhi, the implementation of the “24X7 Scheme” will only amount to supplying water to some areas by depriving people in other areas.

 

In light of the above, the CPI(M) demands of the Delhi government and DJB that they:

  1. Declare that water distribution will not be privatised i.e. handed over to any private company, foreign or Indian.

  2. Desist from all attempts to implement the “24X7 Scheme” in a new guise.

  3. Stop using pro-privatisation Price Waterhouse Coopers recommendations as guide to improve the water situation.

  4. Rectify grossly unequal per capita availability of water between different parts of the city.

  5. Annul the contracts for the Sonia Vihar Project with Odneo Degremont.

  6. Formulate detailed plan for improving water supply and ensuring its sustainable augmentation within the parameters of public ownership; in consultation with the Central Ground Water Authority, other statutory bodies, political parties, citizens’ associations etc.

(INN)