Water Allocation and the Economic Dimension in the Ganga River Basin Management Plan

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1 IEWP Workshop Water Allocation, Water Economics and Ecological Flows in River Basin Management September 2016, New Delhi (India) Water Allocation and the Economic Dimension in the Ganga River Basin Management Plan Professor Vinod Tare IIT (Kanpur, India) Birgit Vogel IEWP TA Team (Vienna, Austria)

2 Content Three parts of the presentation 1. Insight on water allocation and economics in Ganga River Basin according to the GRBMP 2. Status of the water allocation regime in the GRB Initial test of the OECD Health Check / Ganga RBMP 3. Lessons learned and reflection on RBM steps towards improved water allocation and linked economic instruments

3 Insight on water allocation and economics in Ganga River Basin according to the GRBMP

4 Ganga River Basin and the River Ganga River Ganga 2500 km Main Streams: Bhagirathi, Alaknanda, Mandakini, Dhauli Ganga, Nandakini and Pindar Important Confluences: Vishnu Prayag, Nand Prayag, Karn Prayag, Rudra Prayag, Dev Prayag and Prayag Raj Ganga River Basin: 907,000 sq km; Covering 11 States in India IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

5 Key Features of National River Ganga Basin - Geomorphology Geomorphic Map of Ganga River Valley IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

6 Upper Ganga Segment (UGS) 294 km up to Bhimgauda Barrage, Haridwar in Hilly Terrain IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

7 Upper Ganga Segment (UGS) Flows on steep and narrow bed, mostly rocks and boulders. Carries cold water, is subjected to much less anthropogenic pollution. Has highly sensitive and fragile ecosystem and biodiversity, and Most importantly considered to have potential for harnessing hydropower. IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

8 Water and Urban Systems Biota Movement and Sediment Transport IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

9 Middle and Lower Ganga Segment Middle Ganga 1071 km Bhimgauda Barrage to Varanasi Lower Ganga 1145 km Varanasi to Ganga Sagar IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

10 Middle Ganga Segment (MGS) Enters and flows in plains, meandering mostly on bed of fine sand. Has wide river bed and flood plain, and Most importantly modified through human interventions in terms of huge quantities of water diversion/abstraction and subjected to high degree of pollutant loads from domestic, industrial and agricultural activities. IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

11 Water Bodies Pollution and Carrying Capacity Flooding

12 Misusing Water Bodies Pollution and Carrying Capacity Seasonal Streams to Perennial Streams Due to GW pumping and Long Distance Transport of Water across River Basins

13 Lower Ganga Segment (LGS) River has experienced considerable changes in the sediment transport and deposition. Causes wide spread flooding. Undergoes frequent changes in her channel path, and Most importantly is subjected to international disputes on flows and interventions made and/or are being carried out/planned. IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

14 Issues and Concerns of the NRGB Environment Lifestyle Changes Over Use of Natural Resources River Basin or Watershed Five Major Types of Degradation Factors Major Human Activities Affecting the Aquatic Environment of NRGB

15 Impact on Humans Provisioning Services (Food, Freshwater, Fibres, Energy) Regulating Services (Flood Attenuation, Groundwater Recharge, Prevention of Saltwater Intrusion) Loss of Ecosystems Services Supporting Services (Nutrient Recycling, Soil Formation, Biodiversity) Cultural Services (Spiritual Fulfilment, Recreation) IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

16 WATER RESOURCES AND RIVER SYSTEMS An impending water crisis stares the country in her face today. Many of our rivers and water bodies are heavily polluted, posing severe health problems Many cities and towns face acute water shortage every year Much of the population has no access to safe drinking water Over-exploited groundwater resources are affecting agricultural output in large tracts of the country IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

17 WATER RESOURCES AND RIVER SYSTEMS Rapidly vanishing water bodies have gravely damaged aquatic ecosystems and their resilience. The low efficiencies of irrigation water use and poor water management practices and policies at all levels have contributed to the overall aquatic crisis. IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

18 Scope for Interventions Profit Making Activities & Activities of Relatively Effluent Section of the Society Urbanization Industrialization Lifestyle Changes Scope for Interventions Agriculture and Other Rural Activities Deforestation & Denudation Basic Needs and Livelihood of Relatively Poor or Marginal Sections of Society IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

19 Mission Nirmal Dhara or Un-polluted Flow: Various Types of Waste Generated Wastes Solid Liquid Non-Point Irrigation Return Flows Non-Hazardous Hazardous Storm Runoff Point Industrial Cities Domestic Textile Tanneries Others Pulp & Paper Class I Class III Villages Sugar & Distillery Class II IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

20 Implementation of GRBMP: Challenges Most Sensitive Sectors IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

21 The Nexus Water Food Waste Pollution Health Economy IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

22 The Nexus Water Food Waste Pollution Health Economy IEWP Workshop New Delhi Cost Expendpiture Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

23 GRBMP Long journey 25 to 30 Years or even more Will require reforms and investments of the order of INR 6,00,000 Crores (US $ 100 b) Dynamic, will evolve as we learn to gather more systematic information Show how to begin this journey IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

24 Degree of Basin Planning Characterization of River Basin Management High Portugal UK BA DCA: Decentralized Approach Years Journey France BA: Watershed/Basin Approach: Hydrological Model River Basin Authority Meuse International River France, Germany, and Netherland Low DCA None Germany Netherland Level of Coordination Total India IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

25 Governance Encroachment, Abstraction and Waste Disposal Licenses, Permits and Policing to Recognizing, Responding, and Responsibility Empower through knowledge IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

26 Ganga River Basin Management Plan GRBMP Activities in Ganga Basin Prohibited Restricted Regulated Promoted National Ganga River Basin Management Act [ NGRBM Act ] National Ganga River Basin Management Commission [ NGRBMC]

27 Coordination and Not a Compromise Model National Ganga River Basin Management Commission [ NGRBMC] Intellectual Capital and Finances Objective: Ensure strict adherence to the provisions of the NGRBM Act Both in Letter and Spirit Role: Non Executive Knowledge and Information/Data Coordination and Advice Investigation Public Interface Adjudication Seed from IIT Consortium Sown, Nurtured and Grown to a Big Banian Tree Initial Seed Grant from Central Government Sanctions

28 Implementation of GRBMP Comprehensive Legislation on Management of NRGB Review of Existing Legislative Framework Competence of Parliament to legislate on Interstate Rivers in Public Interest Article 246; Entry 56 Prohibition, Regulation and Promotion of Activities in NRGB Setting up Commission IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

29 Implementation of GRBMP (Provisional) Objective of National River Ganga Basin Management Commission To serve as a custodian of National River Ganga Basin (NRGB) and work for its upkeep and improvement on the premise that health of National River Ganga is a key indicator of the health of the Basin as a whole IEWP Workshop New Delhi Water Allocation and the Economic Dimension in the GRBMP Thursday, September 15, 2016

30 Status of the water allocation regime in the GRB: Applying the OECD Health Check

31 Ganga River Basin Management Plan Main Plan Document January 2015 by Co sortiu of 7 I dia I stitute of Tech ology s (IITs) IIT Bombay IIT BHU IIT Delhi IIT Gandhinagar IIT Guwahati IIT Kanpur IIT Kharagpur In Collaboration with IIT Madras IIT Roorkee CIFRI NEERI JNU PU NIT-K DU NIH Roorkee ISI Kolkata Allahabad University WWF India What is the status of the allocation regime and its economic background on the Ganga River Basin? What elements are in place and which ones are missing?

32 Water Allocation and the Basin-Wide Scale The basin wide-scale and management of water allocation and economic mechanisms is a specific challenge. Why? Usual involvement of several countries and states across basin Hence, variation of natural, legal and economic conditions including regulations, enforcement and control Coordination becomes and issue Example Danube River Basin and RBMP: Danube RBMP reflects hydrological alterations including abstraction; Water allocation and regimes not addressed Economic analysis reflected to certain degree

33 Figure 15: Number of water abstractions in the Danube River, DRBD tributaries and Number of surface water abstractions in the Danube RB (rivers with catchment areas > km all DRBD rivers with catchment areas >4,000 km 2 (by Danube country). 2 ) Coordination on basin-wide level: a challenge Hydropeaking Hydropeaking Information is a pressure on water type abstraction that occurs in is the scarce DRBD for and basin-wide is undertaken level by the hydropower sector to generate Water peak scarcity energy and supply. allocation Altered flow has regimes not been below a driver hydropower so far plants occur 89 times in the rivers of the DRBD. Out of those and according to the ICPDR criterion (Table 6), 32 are causing significant Different water approaches level fluctuations larger than 1 m/day below a hydropower plant (or less in the case of known negative effects biology) (see Map 7c). Overall, 44 water bodies are affected by an Linkage between national international level altered flow regime. How to tackle issues on water allocation and economics in large river basins? Firstly, get an appropriate overview on related status, gaps and improvement needs 47 The percentage values refer to the analysed number of water abstractions in the DRBD.

34 Ganga RBMP and OECD Health Check Undertook very first attempt to test the OECD Health Check (2015*) to the water allocation aspects in the Ganga RBMP (Main Document and Aviral Dhara): To better/holistically understand aspects regarding water quantity and allocation What is the OECD Health Check? in the Ganga River Basin Tool to review current allocation arrangements Assessment scales: national, state, provincial, basin-wide Key questions: Are elements of a well-designed allocation regime in place? Robust and adaptable to changing conditions What are the areas of potential improvement? *Water Resources Allocation Sharing Risks and Opportunities (OECD, 2015)

35 OECD Health Check Basic features Structure / Approach of the OECD Health Check 14 elements against which water allocation elements of e.g. Action Plans/Strategies/RBM Plans/etc. are compared to 10 system level elements of water allocation regime 4 user level elements of water allocation regime The 14 check elements are reflected very general in this presentation related to water allocation issues in the Ganga RBMP (taking into account the interlinkage to the State level) A related Background Document will be available online - outlining more detail

36 OECD Health Check / Ganga RBMP Findings in Overview 1. Accountability Mechanisms for water allocation in the Ganga Basin? No voluntary or legally binding accountability mechanism in place to regulate water allocation on the Ganga River basin-wide scale; State basis Concerted effort to legally organise water abstraction is needed GRBMP does not hold status of statutory instrument. However, the GRBMP holds related recommendations regarding water allocation and related mechanisms 2. Clear legal status of water resources? Indian Constitution grants full control of river waters to States. Still, inter-state rivers can be regulated, developed and managed nationally for common benefit of national States Surface waters are public assets: executive control of States; no coherent regulation Groundwater is largely privately owned: Abstraction control in some States for new abstractions; No coherent regulation Contradiction between water ownership and use: Water users not entrusted with maintenance of water resources

37 3. Availability of water resources and possible scarcity well understood? Ganga RBMP outlines that quantitative water status is not well understood Estimates for utilisable water resources potential show high uncertainties due to the use of different methodologies. Water demand projections consider human water needs but not environmental ones Water demand is not yet considered as function of price, availability and supply quality 4. Are abstraction limits in place reflecting in-situ requirements and sustainable use? Surface waters: No commonly agreed abstraction limits are introduced yet. Basin-wide: Work on agreements between various States for sharing water in Ganga RB trough tribunals. Many challenges are faced. Groundwater: No abstraction limits and control are in place 5. Effective approach for effective & fair shortage management to ensure essential uses? No approach that sets priorities for water uses in case of shortages is in place. In some States/locally but not coherent on basin-wide. 6. Adequate arrangements for dealing with exceptional circumstances? Exceptional circumstances are currently not specified on basin-wide level - rather handled on ad-hoc basis. An improved approach is being worked on guided by GRBMP.

38 Developed and implemented accountability mechanisms and regulations for entitlements regarding water allocation would support development and implementation of Processes for dealing with new entrants, increasing and/or varying existing entitlements Check 7 Currently partly in place. Permits not always granted. Effective mechanisms for monitoring and enforcement with clear and legally robust sanctions Check 8 Currently not in place for State and basin-wide level but recommended in GRBMP Several recommendations as part of the Ganga RBMP : Water use and demand control system is very important including realistic water pricing; incentives to improve water use efficiency; allocation of water rights; stakeholder entitlements; reuse of water; Regular monitoring of groundwater levels is essential; Eventual role of RBO: control non-implementation and impose penalties through dedicated fund under central Government;

39 Is infrastructure in place to store, treat and deliver water for effective functioning of allocation regime Check 9 Based on current outlines in GRBMP, difficult to analyse and judge the status and efficiency of related infrastructure. Survey and register would be needed Is there policy coherence across sectors that affect water resources allocation? Check 10 No complete coherence between relevant water sectors; Relevant sectors are addressed in the GRBMP implementation of integrative policy between these poses challenge approaches are being worked on

40 OECD Health Check Findings in Overview 4 User level elements on water allocation scheme (checks 11 14) Check 11: Currently, there is no clear definition of water entitlements. Regulation gap - e.g.: Duration of entitlements; Clear regulation on quantity of water use metering lacking. Analyse value of access to water to economy and related contribution to environment also as basis to define entitlements Check 12: Currently, no coherent system for abstraction charges in place reflecting the impact of abstraction on resource availability GRBMP recommends to introduce realistic water pricing with incentives Economic instruments are not yet addressed in the Ganga RBMP As soon as other water allocation elements are in place as precondition: Specify Assumed obligations that to return these flows will be and rather discharges a matter properly on the specified State level and enforced (13) Reallocation of water among water users to improve efficiency of the regime (14) What is the role of the basin wide level?

41 Lessons learned and reflection on RBM steps towards improved water allocation and linked economic instruments

42 Lessons Learned/Reflections Policy, regulations and approaches on State level Crucial role for consolidated RBM approaches on basin-wide level; Currently, differences between States regarding water allocation regime Coordination between these towards integrated, basin-wide coordination Aiming for a feasible frame Basin-wide RBMPs cannot be implemented in one go also valid for Ganga Water allocation regimes should not be designed for basin-wide scale but be based on national level and be coordinated as such: Aim to prevent negative impacts: Introduce systematic check points to overlook, plan and manage water use and allocation RBO to facilitate management and implementation in and between States

43 Lessons Learned/Reflections Data gaps and shortcomings Fill gaps in staged approach towards clearly defined data needs Targeted and output oriented data collection Options towards less data hungry systems and approaches manage water use Step 1: Higher effectiveness of water user associations in Ganga River Basin Step 2: Address each water use and related aspects Economic instruments Due to the status of water allocation regime in the Ganga RB, economic instruments are lacking What could be appropriate incentives? Definition of economic visions and objectives on basin-wide level to coordinated States towards joint aims on the basin-wide level

44 Thank you for your attention! Contacts: Professor Vinod Tare: Birgit Vogel:

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