Politics of Water Conservation: Industries vs. Agriculture

While the world is gradually moving towards a green economy, Orissa is seen to be embracing a brown economy. Depending on the likes of Vedanta, POSCO, batteries of sponge iron, and coal companies, which have demonstrated negligible social and environmental sensitivities, the state government intends to allocate exclusive water to such industries. On August 5, the state cabinet approved a proposal to create a 'water conservation fund' from the monetary contribution of industries which use the water from October to June. In the name of water conservation, the state government prescribes the social responsibility of industries to activate the fund for water conservation projects like minor and medium irrigations, check dams/barrages, etc., in upstream areas.

At the outset, this is a good initiative, but its intention is unclear, as the fund's operational arrangement has yet to be prepared. First, the Department of Water Resources (DoWR) shares the amount of information. There could be a nexus between industry and government. The DoWR might have its water conservation agenda, which is so far unknown to the people of Orissa. The genesis, process and outcome of approval of such an initiative related to water must be looked into with broader water conservation efforts in Odisha.

What are the water footprint assessments (WFA) of these industries? Industries, especially thermal power plants and coal mining, are water-guzzling units. These units also need no water, but not at the expense of farmers’ needs or the health of rivers or storage reservoirs. The erratic rainfall due to climate change has already destabilised the water balance. As per the government's water balance assessment, industrial demand requires 10 per cent of available water in the rivers.  Subsequently, the government is heading towards creating 'exclusive' water storage for industrial requirements. 

While emphasising the construction of exclusive storage, the government prescribes mandatory reuse, recycling, and water conservation for industrial units. How many industrial units have been following this government prescribed-diktat? The state government must ensure a water footprint audit, both direct and indirect use of water in these industries, before allocation. There has been a gradual departure from the State Water Policy 2007, which considers industrial needs to be the fifth priority among the six priority sectors.  In the same breath, the 2007 State Policy stipulates that any alteration in the mentioned priorities will demand the formulation of a new policy. Has the Government taken steps for such drafting of a new water policy?

It is believed that DoWR has evolved from a narrow focus on infrastructure building to water resource governance since 1996. But in practice, DoWR has been evolving as an agency to facilitate the state's so-called brown economy and become a spokesperson for the industries using Participatory Irrigation Management (PIM) as a shield.

For a decade or so, industrial water allocation from the major rivers has not been transparent and accountable. This is equivalent to saying that industrial water consumption has exceeded the actual allocation or vice versa. Water theft has not been regulated or curbed not only from rivers but also from groundwater. Now, industries drawing five cusecs or more water shall contribute once at INR 2.5 crore per cusec to the Fund.

In mid-2005, the Orissa State Pollution Control Board (OSPCB) identified 78 industrial units, mainly mining and sponge iron plants, that were issued show-cause notices for causing water pollution in Keonjhar District. Many such industrial units along the Brahmani River have been evading water pollution guidelines. Has DoWR taken stringent action, like imposing a ban on these units from drawing water from rivers or underneath?

However, the state government has been lenient towards industries. All allocations of water for Industries are made only after political permutation and combination. If the state government wishes to transform its act of a so-called increase in the irrigation potential into an electoral vote in the coming election, the water fund, which provides Industries with a free hand to divert and consume water, would definitely aggravate already existing animosities between industries and agriculture.

For greening the economy with the spirit of environmental conservation and facilitating developmental activities by luring extractive industries, various initiatives exist worldwide, including in India. The Water Conservation Fund (Fondo de Protección del Agua) in Ecuador, the Water Trust Fund in Peru, the Trust Fund in Laos, and the Land and Water Conservation Fund in the US are similar initiatives. The much debated and non-transparent Corporate Social Responsibility (CSR) comes as a volunteer and charitable source is one of such non-binding funding from the private sectors. 

We do remember that by the end of December 2000, a portion of dyke of Ash Pond No. 2 of Captive Power Plant of NALCO, Angul breached and affected 300 acres, including the Nandiara River bed.  The NALCO supported a INR 5.72 crore drinking water project covering 30,000 people in 13 affected villages. 

In India, the Compensatory Afforestation Fund and the Catchment Area Treatment (CAT) Plan  fund are such examples of effort towards conservation. The Compensatory Afforestation Fund Management and Planning Authority (CAMPA) aims to accelerate the preservation of natural forests, management of wildlife from the money collected towards compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, Net Present Value (NPV) and all other amounts from the user agencies under the Forest (Conservation) Act, 1980.  The CAT Plan fund addresses the conservation of the river's catchment area through biological, engineering, and social measures directly or indirectly associated with the catchment area. 

The state government has not divulged details of the implementation of such funds so far. Across India, the CAT plan fund has not been utilised so far for the said purposes. Then, the question is, what is new in this water conservation fund?

Water is not oil or hydrocarbon.  Water can't be equated with forest, coal or hydrocarbon among all the finite natural resources. Industries are drawing water and diverting mostly irrigated command areas for their activities. Despite water allocation from rivers, many industries are drawing ground water locally, which triggers local conflicts. While the government, by its talk, is maximising the benefits for industries instead of farmers, it can't regulate the leviathan in Orissa. With such a backdrop, how far the water conservation fund will be transparent and accountable to the farmers of Orissa is a moot point. 

In the last decade, the government has introduced many innovative programmes to develop water resources in the state. Proper auditing is required to determine the efficacy of such investments. One such arrangement was the Perspective Plan of the DoWR, prepared in 2009. The department's plan and programme are not in line with the Perspective Plan. Who is accountable for this? In water sector development in Orissa, it has been accepted to show a rosy picture to the stakeholders (farmers) and then utilise the resources in a way suitable to the implementing units.

The fund comes and goes in India without a trace. The trust deficit is high on the citizens' minds. Without proper mechanism, structure, and process, the DoWR should not bring the Fund into existence. Prior to implementation, it needs to be extensively discussed among the stakeholders, more particularly the farmers. To remove such a trust deficit, the DoWR must look into the health of rivers rather than industrial dolls. Accountability must be the priority while stepping into the gamut of corpus funds.

[An abridged version of the article was published in Orissa Post (English Daily, on October 13, 2013.]