Irrigation water pricing policies and water resources management

Abstract

As water is a state subject in India, an enormous variation of irrigation water pricing across the states is noticed. Revenue collection under irrigation water charges of the states is not encouraging. The present paper reviews the structures of water pricing mechanism in different states of India and suggests a way to achieve sustainable water resources management in India. Various reports, water policy documents, and major recommendations of the irrigation commission were reviewed and analyzed. It was observed that low revenue collection is mainly due to the low rate of water taxes, no periodic revision, and flaws in the current revenue collection mechanism across the states. The water regulatory authority should be made a statutory body to manage various water uses and their fair pricing. A volumetric pricing system can be implemented in wells and tube-well-irrigated areas and for surface irrigation, and this requires considerable investment in irrigation water supply infrastructure and development of operational plans. Until a well-developed volumetric system comes into practice, the current system of revenue assessment and collection must be rationalized and simplified. An appropriate power tariff policy for rural areas and inclusion of the irrigation sector in a ground water conservation fee is required.