IWRM Road Map, Orissa :Water Pricing

Orissa going for fixing price for water use

Satyasundar Barik
Under the plan, users could be charged according to the measured volume of water
Water Regulatory Authority is expected to fix the charges

Civil society groups and farmers' organisations are up in arms against the proposal

BHUBANESWAR: Is Orissa proceeding to fix a price for water? This appears to be true going by proposals elaborated in the report of Orissa Integrated Irrigated Agriculture and Water Management Investment Programme (OIIAWMIP ).

One could get fair amount of idea about creation of market for water, identification of civic bodies as water retailers and classification of high value users.

As per the plan, users of water could be charged according to the measured volume of water. It proposes installation of metres for water measurement. It says all water allocations should be quoted in mega litres (ML) for agriculture and industry and kilolitres (KL) for domestic.

“With a common unit of measurement in place, the price will become more transparent,” says the document of Department of Water Resource and Asian Development Bank.

“Water users in Orissa do not yet have access to formal entitlements, much less access to a market or exchange where they can purchase additional rights. Once the safe yield available within a particular river basin or system becomes fully allocated, it will be desirable to establish an exchange where access rights can be traded on a temporary or permanent basis,” the document posted by DoWR on its webpage says.

It goes on to say ideally the exchange should function as a ‘market place' where the access rights can be bought and sold.

“While no one would be forced to sell their access rights, market forces would act through time to bring about efficient outcomes.

The exchange could be operated by DoWR or some reputable third party,” the document says. The OIIAWMIP report talks about earning cash if sellers would be giving up their water access right.

Water Regulatory Authority, which is expected to be in place by March 2012, could be fixing charges for surface and sub surface water used for domestic, agriculture, industrial and other purposes. “This is a dangerous idea. Gradually, access to water will become costlier. Those who have purchasing capacity can access water. When the report was prepared, stakeholders such as politicians, civil society groups, farmers, intellectuals and general water users could have been taken into confidence,” said Achyut Das, member of Odisha Water Forum.

“The proposal has been implemented to a large extent in Maharashtra.

The experience has been bad. The department has mooted pricing of water giving a reason that it would lead to more responsible use. We apprehend people who had traditional rights over water would be made to pay for the use,” said Pranab Ranjan Choudhury, another member of Odisha Water Forum.

Civil society groups and farmers' organisations are up in arms against the proposal. They demanded that the State government must elicit views of all sections of population before deciding on a critical sector like water

IWRM Road Map, Orissa :Water Pricing

Orissa becoming a dry State?
Siba Mohanty First Published : 25 Oct 2010 07:39:41 AM ISTLast Updated : 25 Oct 2010 12:03:40 PM IST
BHUBANESWAR: In the midst of a raging controversy over water diversion for industry, Orissa’s woes are going to worsen. Its rivers will provide for less as the water stress grows in future. If that is not all, the rising pollution will add to its misery, the latest report on water management by Department of Water Resources and Asian Development Bank (ADB) says.
At least three rivers would experience water stress by 2050 even as the per capita availability is going to dwindle.
Calculating the water availability from 11 major river basins, it says that per capita availability will decline by 34 per cent by 2050.
The average surface and ground water potential of the State, currently at 141 billion cubic metre (BCM), would fall by at least 10 per cent to 129 BCM.
“Per capita water availability varies throughout the State according to the relationship between availability and population. As the State’s population is still expanding, per capita supply will decline sharply,” the report said.
With rising population and consequent increase in demand for food and water with growth in mining and industrial activities, the demand for water from various sectors could increase to 55 BCM by 2050, the report indicated.
The water availability decline too points at water stress condition of the rivers. Three rivers __ Baitarani, Rushikulya and Budhabalanga __ will become water stressed. The per capita water availability from Baitarani is going to decline from 1,976 cubic metre to 1,348 cubic metre whereas the drop for Rushikulya will be from 1,341 cubic metre to 1,021 cubic metre. In case of Budhabalanga, it is expected to decline from 1,616 cubic metre to 1412 cubic metre.
Although Orissa possesses 11 per cent of the country’s water resources as against a population of just 4 per cent, it’s challenge remains in the strong seasonality of supply.
Increased demand due to a growing population, economic development as well as rising consumption in upstream states will lead to a decreased inflow and falling availability. Besides, climate change will also be a big factor. “The overall scenario points to increased flood risk and hydrological uncertainty,” it explained.
Availability apart, water quality will pose a major a challenge as the industrialisation makes things worse. The report suggested a bleak situation for at least six major rivers whose water quality rarely meets drinking water standards, thanks to inadequate treatment of the municipal and industrial effluents.
The report paints a grim picture saying the entire stretch of Mahanadi is in a state of slight to moderate pollution. Of the dozen monitoring stations of Mahanadi, all except five show water quality is below acceptable levels.

Drinking Water from Reservoir

Water projects hang fire in Berhampur
Sisir Panigrahy Express News Service
First Published : 26 Oct 2010 07:59:22 AM ISTLast Updated : 26 Oct 2010 12:37:51 PM IST
BERHAMPUR: To address the drinking water crisis in the Silk City, the State government has now decided to bring water from Janibili reservoir in Soroda. Though water from Soroda reservoir comes to Dakhinpur reservoir for daily supply to the city, the water is supplied through open canals due to which, 80 per cent of water goes waste.
Keeping this in view, the government has decided to bring water through pipes from Soroda reservoir. A project at the cost of Rs 250 crore has been prepared and survey work has also been completed for it. The work, however, is yet to begin although the decision was taken at a high-level meeting presided over by Chief Minister Naveen Patnaik here last month.
Several plans like this have been chalked out in the last three decades to address the drinking water crisis in Berhampur, yet none has materialised so far.
A case in point is the Ghatakeswar project which can be an immediate solution for the water crisis and irrigate hundreds of acres of agricultural land in Chikiti area.
Senior Congress leader Chitaranjan Dash said the Ghatakeswar project was planned during 1982 but it was limited to files till 2007 when the Government approached Nabard for financial aid.
The Nabard, accordingly, sanctioned Rs 29 crore for the project. The government, however, is yet to take measures to rehabilitate families which would be affected by the proposed project.
Apart from government land, eight acres of private land needs to be acquired and 41 families of Kankia, Sarakot and Koilikot villages evicted.
Meetings in this regard have been held umpteen times but no concrete measures have been taken till now.
Even the land identified to be exchanged for the land to be submerged by the project, could not be transferred from the Revenue to the Irrigation Department.
As a result, the Irrigation Department is unable to start the plantation work which is mandatory for forest and environment clearance.
Due to the delay, the project cost has risen to Rs 42 crore against the earlier estimate of Rs 29 crore.
Dash said the Janibili project is a welcome step but the government should also begin work on the Ghatakeswar project at the earliest for the benefit of people.

Sesptember Issue of Water Feeder

The September Issue of Water Feeder in the NEW FORMAT is now posted at http://www.scribd.com/doc/39718188/Water-Feeder-Sep2010

The Editorial note is reproduced below

ODISHA’s WATER WOES CONTINUES……..

Odisha’s tryst with water-agonies either due to less-water or from excess-water is perennial. Many a times, both these extremes strike at the same time, though at different places. This unfortunate coincidence was also evident in this month, with drought spelling doom in more than 15 districts, while rain-linked cholera and diarrhea hitting a not-so prepared administration in KBK districts once again, taking heavy tolls. Started with Hirakud few years back and that around the Brahmani over past months, the debates and protests over water allocation priorities between industry and agriculture (and livelihoods and environmental flow) from state’s rivers, snowballed to a movement around the Mahanadi, with overwhelming political alignments around allocation to POSCO.

While during the first half of the month, drought situations and predictions for different districts of the state dominated the water-news in different vernacular news papers of Odisha, in the second half unfortunate deaths due to water contamination in Rayagada and Kalahandi took over the headlines. News related to water conflicts around Polavaram as an inter-state dispute and over water allocation to POSCO also continued to draw media attention with overwhelming political alignments on both of them. Pollution of river waters from untreated effluents industries as well as due to breaches in ash ponds also hogged the news paper pages, albeit with less than desired attention.



As you know, ‘Water feeder comes to you on behalf of Odisha Water Forum and Odisha State Center of Forum for Policy Dialogue on Water Conflicts in India. This monthly feed contains analysis of about 200 news items published in 5 Odia dailies (the Samaj, the Sambad, the Dharitri, the Pragatibadi, the Khabar and the New Indian Express – All Bhubaneswar editions)
This is a compilation and analysis of water-related news published in Odia and local English dailies with an objective to help water professionals and enthusiasts to capture and comprehend issues and conflicts around water (through eyes of media). It also provides geographical, seasonal and media perspectives of water issues and conflicts with respect to Odisha. This monthly feed of Water news is an attempt to stimulate interest, thoughts and actions on water issues in the state apart from feeding research and academic pursuits.


This along with past issues of RIVER BASIN TRANSACTS are available at SCRIBD, Baitarani website and India Water Portal.
Looking forward to your feedbacks and comments to improve this humble initiative,

Brahmani river dying ?
PTI | 04:10 PM,Oct 14,2010

Jajpur (Orissa), Oct 14 (PTI) Brahmani river, the life line of a large number of villages on its banks in Jajpur and Kendrapara districts of Orissa, has dried up due to massive siltation at its upper reaches. The river is the only source of water for over three lakh inhabitants of Bari, Rasulpur, Badachana, Dharmasala and Jajpur blocks in Jajpur district and Aul, Kendrapada, Pattamundai and Raj Nagar blocks in Kendrapada district. Units at the Kalinga Nagar industrial complex are using water from Brahmani and Kharasrota rivers illegally, alleged Biswajit Mohanty, a rain water harvesting activist. He is echoed by Gagan Behari Jena, a local and convenor of 'Save Brahmani River Committee', formed by the people. ''The situation has turned complex as this year the river has turned dry due to truant rains ... The people are not getting sufficient water to irrigate their lands due to shortage of water,'' he says. Discharge of pollutants from industrial units has degraded the river to the extent that it has become a large drain. Once a source of fish and fresh water, Brahmani has become so polluted that its water has acquired a tar-black colour in many places,'' says Loknath Das, another member of the campaign to save the river. The industries there should take it upon themselves environmental and social responsibilities without waiting for regulation. They should also harvest rainwater, which will save the rivers and reduce water costs for them. Besides, waste water should be recycled, reused and made to recharge the ground water, says Mohanty. When contacted, Subrat Das, Executive Engineer of Water Resouces of Jaraka Irrigation division in Jajpur district said the problem arose from the fact that the water of rainfed Brahmani river enters its branch Kharasrota, which has a lower bed. Moreover, there is massive siltation and huge sand deposits at its catchments area at Jenapur and Bedipur, which needs to be cleared. A survey of Brahmani river is being conducted on a priority basis as per the direction of the Water Resources department, he said.

Another "Project' in Conflict

680 families to be displaced for Brutang irrigation project in Orissa
Published: Saturday, Oct 9, 2010, 16:15 IST
Place: Bhubaneswar | Agency: PTI
As many as 680 families would be displaced for setting up an irrigation project in Orissa's Nayagarh district, the stage-I environment clearance for which had been accorded by the Centre, official sources said.

Issuing direction to officials to ensure that the displaced families were properly rehabilitated, chief minister Naveen Patnaik said that about 23,300 hectares of agricultural land was estimated to get irrigation facilities by the irrigation project over Brutang river.

Patnaik reviewed the irrigation project last evening, barely hours after residents of about 21 villagers unitedly opposed to it. "We will not allow our houses to be inundated for the project," said Jasoda Behara, one of the giators.

While the state government was all set to implement the project by appointing a special officer to coordinate early clerance of the stage-II environment clearance, the local residents under the banner of Basachyuta Sangram Samiti vowed not to vacate their house and land to be submerged.

About 2110 hectare of land was likely to be inundated due to the proposed project to be set up over river Brutang in Nayagarh district.

Stating that 7.42 lakh people living in 309 villages in five blocks area of Nayagarh district would get benefit due to the project, Kandhamal MP Rudra Ray said he was talking to the agitating people to pave way for setting up the irrigation project.

Ray during the BJD's 10-day long 'padayatra', visited several villages to be displaced due to the project and tried to convince the people. "We are sorry that a large number of people will be displaced. But the project is very important as it will irrigate about 25,000 hectares of agricultral land," the MP said.

Industry Agriculture Water Conflict

Indian Farmers Fight Billionaire Mittal, Posco for Water Rights
By Abhishek Shanker - Oct 4, 2010 8:31 PM GMT+0530

ArcelorMittal and Posco are leading $80 billion in planned spending in India that would vault the country ahead of Japan as the second-biggest steelmaker. Standing in the way are farmers and their water supply.

The farmers refuse to move from irrigated land in three states that hold more than half of India’s reserves of iron ore, a key material to make steel. That’s stymied Prime Minister Manmohan Singh’s ambitions to more than triple India’s steel capacity to 232 million metric tons.

“We’re not going to allow the government to take the land and water and give them to Posco,” said Prasanth Paikare, a spokesman for opposition group Posco Prathirodh Sangram Samiti that says it represents 25,000 farmers. “The government has promised us land at a new location but there is no good land available in the state now and there won’t be enough water for agriculture,” he said in Bhubaneswar, the capital of Orissa state.

The farmers’ concern about water for crops has delayed plans by ArcelorMittal, Posco and at least five rivals to benefit from a steel market that has expanded more than 55 percent since 2005 as Indian imports of the metal tripled in the same period. Posco’s proposal to build a $12 billion steel plant in Orissa has stalled for five years as the South Korean company failed to persuade farmers to move.

“Repeated delays have left investors concerned about whether Posco can make it,” said Im Jeong Jae, who helps manage $26.3 billion of assets, including shares of the world’s third-biggest steelmaker, at Shinhan BNP Paribas Asset Management Co. “India is very important because it has the best growth potential after China for steel demand and Posco can also source iron ore and raw materials there.”

Lagging Behind

The latest hurdle is an environment ministry report due this month on the impact of the Posco project. Chief Executive Officer Chung Joon Yang has since announced investment plans in Indonesia and Vietnam, as it lagged behind Chinese steelmaker Baosteel Group Corp.

The 160 million tons of steel capacity planned in India would consume 640 billion gallons of water a year, based on average consumption of U.S. steel mills in a U.S. Department of Energy paper. That’s enough to provide enough water for drinking and cooking for 133 million people in India for a year, according to figures from the government.

That level of water consumption would yield 1 million tons of rice a year, which at today’s price of $299 a ton would fetch 0.3 percent of the value of the steel produced and be enough to feed 9 million people in India for a year, based on the United Nations Food and Agriculture Organization consumption estimates.

Land and Water

“Posco wants our land, it wants our water,” said Makar Kandi, 75, who sustains a family of eight from a one-acre plot on which he grows betel leaves in Orissa’s Dhinkia village. “Agriculture is our only means. We’ll have no livelihood.”

India increased annual steel output by 34 million tons since 2005, compared with 219 million tons by China, the biggest-producing nation.

A ton of hot-rolled coil, a benchmark steel product, sells for about $685, compared with $299 a ton for a common variety of rice in India.

ArcelorMittal, the world’s largest steelmaker, faces delays for a $10 billion mill in Orissa and in Jharkhand state. Projects by Tata Steel Ltd., India’s biggest maker of the metal, are faring no better in the two states and in Chhattisgarh.

Iron Ore Attraction

According to an agreement with Jharkhand, Luxembourg- based ArcelorMittal would have access to 20 million tons of iron ore annually for 30 years. That’s enough to raise its self- sufficiency in the raw material by 33 percent. Iron ore prices have gained in two out of three quarters this year.

“Securing iron ore assets has become very important for the steel companies as prices both in the contractual as well as spot markets have been very volatile,” Elora Sahoo, an analyst at Dhanlaxmi Bank Ltd., said in Mumbai. “Having their own iron ore assets will help companies hedge against market price movements and control the cost of production.”

ArcelorMittal is now seeking to secure land at a new location in Jharkhand, said spokeswoman Mandakini Sud. There has been “good” progress in convincing locals, mostly people engaged in non-agricultural activities, to give up land, she said.

“With over 60 percent of India’s population dependent on the monsoons for livelihood, there’s population concentration and serious competition in areas with water,” Rahul Jain, an analyst at RBS Equities India Ltd. said in Mumbai.

Less Rainfall

What’s making the case worse for Posco is the declining rainfall in the Jagatsinghpur district where it’s planning its mill. Rain during the June-September monsoon period, needed for agriculture, has fallen 26 percent from 2007 to 2009, according to data from the country’s weather department.

That forced farmers to compete with manufacturers including Vedanta Resources Plc and Hindalco Industries Ltd. for water from the Mahanadi river. Posco plans to secure water through pipes from the Jobra dam on the river.

“Opposition to the project is unfounded,” Posco India Ltd. General Manager Simanta Mohanty said. “We will not use local water. There’s enough water available from Jobra.”

The steelmakers in June begun exploring sites in the southern state of Karnataka, which has the country’s second- biggest iron ore deposit. The catch? Lack of water.

“The state has decided to acquire dry and barren land, which gives little or no returns to the farmers,” said V.P. Baligar, industry secretary of Karnataka state. “On such land, water is an issue and we are trying to address it.”

Polavaram

SC issues notice to Centre on Orissa’s plea against Polavaram dam
04.10.2010 | 15:56
New Delhi
Upmanyu Trivedi


Issuing notices Supreme Court of India today directed the Centre to respond to state of Orissa's plea against environment clearance to Polavaram dam. The dam is being built in Andhra Pradesh over river Godavari and will also submerge areas in Orissa.

Supreme court bench comprising Justices Dalveer Bhandari and Deepak Verma passed the orders giving four weeks time to any other state interested in impleading in the petition.
Orissa had a filed petition in the Supreme Court opposing the Centre’s decision to give an environmental clearance for the Rs. 10,000 crores project being built on Godavari river in Andhra Pradesh.

Orissa has filed the petition before the Supreme Court, demanding cancellation of environmental clearance given to the project by the Union Ministry of Environment and Forests (MoEF). Orissa has questioned as to how the clearance was given to the project when the case is pending in Supreme Court.

Advocates Suresh Chandra Tripathi and RS Jena appeared for the state of Orissa.

Hansua Conflict

Hansua water for Posco project opposed

Correspondent

Speakers at a seminar criticise the government's proposal

The programme was organised by Odisha Jala Surakhya Janamanch

Farmers in large numbers attended the seminar

CUTTACK: Speakers at a State-level seminar here on Friday opposed the proposal of Orissa government to supply water from the Hansua River in Jagatsinghpur district to the proposed Posco steel plant at Paradeep. Organised by the Odisha Jala Surakhya Janamanch, the seminar was attended among others by hundreds of farmers from areas like Biridi, Raghunathpu, Tirtol, Erasama and Balikuda of the district.

Janamanch convener Chittaranjan Mohanty said that the Hansua was not a natural river. “It's not even a tributary of the Mahanadi system and not even a rivulet having independent source of water,” he said. “Rather the Hansua is a drainage channel of the Taladanda canal through which seepage water from the canal and rain waters flow during floods to avert water-logging in vast stretches of agricultural land in the locality,” Mr. Mohanty said adding that the government's proposal to draw water from this channel for the South Korean steel major is nothing but indirectly drawing water from the Taladanda canal.

The 90-km Taladanda canal from Cuttack to Paradeep was exclusively meant for irrigation purpose. Even when the tail-end areas of the canal face acute shortage of water for irrigation, how can the government think of drawing water from the middle of the canal for industrial purpose, the speakers pointed out in unison. Any proposal to draw water from the Hansua channel would also result in water stagnation and would have serious consequences on agricultural patterns of local people stretching from Kandarpur to Nalibar areas where besides paddy and vegetables, other cash crops like groundnut and mustard were grown in large tracts, the farmers said.

Presided over by Janamanch president Akshaya Das, the seminar was addressed among others by former Union minister Brajakishore Tripathy, Janamanch secretary general Biswabasu Das, CPI (M) leader Subash Singh, environmentalist Prafulla Samantra, engineer Lalit Patnaik and former MLA Bijay Naik.