Home About Us About Civil Services Exam Courses Test Series NEW Batches Admission FAQ's Contact Us My Account

You are here Economy and Economic Development

Water Privatisation
Nov 27, 2013
Access to safe drinking water has been recognized as a human right by UN. But due to increasing
consumption patterns, water is becoming scarce and this scarcity is an emerging threat to the global
population. Thus to overcome this issue, the solution proposed by world bodies such as World Bank,
IMF is privatization of water.

Privatisation of water involves transferring of water control and/or water management services to
private companies. The water management service may include collection, purification, distribution
of water and waste water treatment in a community.

There are several models of water privatization:

a) Service Contracts In this model, public authority retains overall responsibility for the
operation and maintenance of the system, and contracts out specific components such as meter
reading, billing and maintenance.

b) (Design), Build, Operate, Own and Transfer or (D)BOOT This model is used for
infrastructure development related to water management e.g. water treatment plants that. The
private operator is required to finance, construct, operate and maintain the facility for a specific
period of time.

c) Divestiture In this model, the government or public authority awards full ownership and
responsibility of the water system including the water source to a private operator under a
regulatory regime


Advantages of water privatization:
Improves efficiency of water utilization.
Creates competition which may be beneficial for customers.
Enable the extension of water services with good water quality.

Disadvantages of water privatization:
Price hikes are unaffordable for poor.
May lead to unsustainable water mining.
May lead to creation of water monopolies.
Notifications
UPSC
State PSC

View Result of "Combined State/Upper
Subordinate Service (P) examination -
2013" May 24, 2014
Result for "Combined Lower Subordinate Service
(M) examination - 2009 May 22, 2014
JPSC - 5th Combined Civil Services Mains
Examination-2014 May 13, 2014
COMBINED STATE / UPPER SUBORDINATE
SERVICES PRELIM EXAMINATION-2014 ( PCS -
2014 ) Apr 24, 2014
UPPSC-2012 FINAL RESULT ANNOUNCED Mar 04,
2014
More
Hindi
Call US on : (+91)8130392354-56-57-58-60 or 011-47532596 Hi, gheyasuddin Logout
GS (Pre + Mains) Batch Starting from June 16,2014 (6:30 PM To 9:00 PM) More Batches
5/27/2014
Write a Comment
Corruption and lack of transparency.
Corporations in search of profits can compromise on water quality.

Example: The Chattisgarh State Industries Development Corporation (CSIDC) , which is in the
charge of industrial development in the state , commissioned the project to meet the demand on
water in the Borai Industrial area situated on the Banks of the shivnath a non perennial river. As
part of the project, a 23.6 km stretch of river was ceded to Radius Water through a 22 year
renewable contract, under which the company had absolute monopoly over the stretch of river
water. In return, Radius Water would provide water to the CSIDC from the Shivnath during the lean
6 months. Furthermore, Radius Waters monopolistic deal with CSIDC and the water resources
department covered ground water as well in an 18 km radius covering the Borai industrial area. The
company promptly prohibited fishing in the stretch of the river and also changed local farmers for
access to water from tubewell.




GET IN TOUCH
Drishti The Vision Foundation
641, Ist Floor
Mukherjee Nagar
Delhi-110009
Phone: 011-47532596
Mobile: (+91)8130392354-56-57-58-60
CONNECT WITH US

Subscribe Drishti Newsletter
Articles and Category
GENERAL KNOWLEDGE
HISTORY,ART AND CULTURE
ECOLOGY,ENVIRONMENT AND DISASTER
MANAGEMENT
POLITY AND GOVERNANCE
GEOGRAPHY OF INDIA AND THE WORLD
SCIENCE AND TECHNOLOGY
WELFARE SCHEMES AND POLICIES IN INDIA
BILLS AND ACTS IN INDIA
CURRENT AND NATIONAL ISSUES
ECONOMY AND ECONOMIC DEVELOPMENT
INTERNATIONAL RELATION
News and Category
UPSC SYLLABUS
PCS SYLLABUS
UPSC PREVIOUS YEAR PAPER
PCS PREVIOUS YEAR PAPER
UPSC CURRENT AFFAIRS
IAS PLANNER
EDITORIALS DAILY
UPSC NOTIFICATIONS
STATE PSC NOTIFICATIONS
CIVIL SERVICES PRELIMINARY EXAM
CIVIL SERVICES MAIN EXAM
UPSC EXAM PATTERN
HOME | ABOUT US | COURSES | ONLINE TEST | TERMS & CONDITIONS | REFUND & CANCELLATION | PRIVACY POLICY | CONTACT US



1 0
GS (Pre + Mains) Batch Starting from June 16,2014 (6:30 PM To 9:00 PM) More Batches
5/27/2014

To Subscribe Newsletter and Get Drishti The Vision Updates.
SOCIAL ISSUES AND SOCIAL JUSTICE
INTERNAL SECURITY
UPSC ELIGIBILITY CRITERIA
NCERT BOOK FREE DOWNLOAD
DOWNLOAD STATE PCS PAPER
Copyright 2013 @ Drishti The Vision Foundation, All rights reserved
GS (Pre + Mains) Batch Starting from June 16,2014 (6:30 PM To 9:00 PM) More Batches
5/27/2014