OMIS 5120 - Water Crisis in India
OMIS 5120 - Water Crisis in India
OMIS 5120 - Water Crisis in India
This dam has been built with the unrelenting toil of man for the benefit of man-
kind and therefore is worthy of worship. Such dams are the temples of modern India.
May you call it a Temple or a Gurdwara or a Mosque, it inspires our admiration and
reverence.
—Prime Minister J. L. Nehru
December 1963
Inauguration of Bhakra-Nagal Dam
D
inesh Shindey1 watched as swirling, muddy water from the heavy rains
spilled over the bank of a canal and lapped at the doors of nearby shacks.
Flooding was common in India during the summer monsoon rains which
sometimes exceeded fifty inches in one day in parts of the country. Yet, drought was
also very common during the rest of the year, particularly in far western India, parts of
which averaged less than five inches of rain each year. The old public irrigation system
established by the British in the pre-independence years had crumbled from lack of
maintenance. As a result, life was very difficult for most of India’s 800 million poor
farmers who simply had to wait, and pray, for rain. As Shindey contemplated these
issues, the lights in his office flickered and his computer screen went dark. As a former
Central Minister of Power for India, he knew that power outages were common due
partly to insufficient power generation and partly due to rapidly increasing population
and demand.
On this day of torrential rain in 2006, Shindey was absorbed in a massive water and
power generation project that might lead to a better life for millions. Or, it might well
be a very expensive environmental boondoggle—he was not sure which yet. The prime
minister of India had appointed Shindey to form and chair a high-level task force to
study a massive project called the River Linking Project (RLP) that would essentially
reengineer the water systems of India. A primary goal of the RLP was to annually
transfer trillions of gallons of water from basins with excess water in north/northeast
Copyright © 2014 by the Case Research Journal and by Gary W. Clendenen, James F. Booker, Michael A.
Card, and Raj Devasagayam. An earlier draft of this case was presented at the 2011 NACRA conference.
Figure 1: Map of India Showing Components of the River Linking Project (RLP)
Modern India2
With a population of more than one billion living in an area only one-third the size
of the U.S., India was densely populated. In 2004, the United Nations predicted that
India would continue to grow rapidly reaching a population of 1.6 billion by 2070
(Figure 2), resulting in an extra 500 million people needing water. Nearly 80 percent
of the population lived on tiny, subsistence farms and in rural villages where it was a
struggle to stay alive and feed families. Although the population living in cities had
doubled in the thirty years leading up to 2006, experts predicted that most poor, rural
families would still be trying to scratch a meager existence from their small farms for
the foreseeable future.3
2,500
2,000
Population (millions)
1,500
1,000
500
0
1950 1970 1990 2010 2030 2050 2070 2090
Year
In spite of the rapid population growth, hundreds of millions of Indians had been
lifted out of the worst levels of poverty within the past thirty years due to rapid eco-
nomic growth. The year 1991 was a watershed year for the economic transformation
of India from a planned socialistic economy to a liberalized market-based economy.
Under the leadership of the finance Minister of India (and subsequent Prime Minister)
Mr. Manmohan Singh, the economy grew at a rate unparalleled in earlier decades.
Figure 3 shows that the annual growth rate in the per capita GDP averaged about
2.5 percent per year until the mid-1990s when it accelerated to nearly 5 percent per
year. But even as India experienced periods of rapid economic growth throughout its
economy, 25 percent of the people remained in abject poverty in 2006.
The United Nations (UN) Development Programme (UNDP) had developed the
Human Development Index (HDI) in 1990 and published an annual report with
comparative data by nation. The HDI was a comparative measure of life expectancy,
literacy, education, and standards of living that measured the impact of economic
policies on quality of life. In contrast to the GDP which focused on total economic
activity, the HDI was used to measure the growth and general well-being of the people
living in the country.4
A review of India’s performance on the HDI from 1975 to 2005 provided a sober-
ing picture that a mere economic analysis could easily miss. Figure 4 compares the
growth of the HDI for the rapidly developing BRIC countries (Brazil, Russia, India,
and China) from 1975 to 2005. Not only was India the only country in this emerg-
ing group that exhibited an HDI below the world average, but India was doing little
to close the gap on its BRIC peers. In particular, while the HDI gap between India
and China was about 0.1 in 1975, the gap had risen almost 50 percent to about 0.15
by 2005. This growing gap was indicative of the challenges facing India, a monsoon-
dependent, agrarian country, where “quality of life” was directly tied to the availability,
management, conservation, and governance of water. In summary, the leadership of
India had long been committed to economic growth, but that growth was only very
slowly translating into benefits for many Indians.
10.0%
Annual growth of GDP per capita
7.5%
5.0%
2.5%
0.0%
-2.5%
-5.0%
1950 1960 1970 1980 1990 2000
Year growth
annual grow th
5 yr moving average
0.85
0.8
Russia
0.75
0.7 Brazil
0.65
China
0.6
0.55 India
0.5
World Average in
0.45
2005
0.4
1975 1980 1985 1990 1995 2000 2005
One reason for the poor performance of India on measures such as HDI was
widespread and systemic corruption. Ms. Anupama Jha, the executive director of
Transparency International (TI) in India said:
Corruption [in India] has led to inequality, injustice and has widened the divide
between the rich and poor. It has led to lopsided development and enriched an elite
few . . . The feeling among the public that corruption cannot be rooted out is the
biggest challenge. The feeling that no action will be taken against politicians and
25%
Percent of Total Plan Outlays
20%
15%
10%
5%
0%
19 6
19 1
19 6
19 9
19 4
19 8
19 0
19 5
19 0
19 2
19 7
2
–5
–6
–6
–6
–7
–7
–8
–8
–9
–9
–9
–0
51
56
61
66
69
74
78
80
85
90
92
97
19
0.60%
0.50%
Percentage Reduction in
0.40%
Poverty
0.30%
0.20%
0.10%
0.00%
1973-77 1977–78
1973–77 1977-78 1983
1983 1987-88 1993–94 1999–2000
1987–88 1993-94 1999-2000
A different analysis showed that a nation’s access to clean water seemed to have little
relationship to the total per capita freshwater resource within a nation. Rather, access
to clean water seemed more closely linked to other measures of development such
as the Human Development Index.15 Some suggested that India’s largest challenge
was less an absolute scarcity of water, but rather was better described as a problem of
reliably delivering at least some clean water to where and when it was most needed.
Figure 8 shows the very small per capita water storage in the six river basins of India
compared to the Orange basin in Australia and the Colorado River basin the United
States. Low water storage capacity in India made it very difficult to save excess mon-
soonal rains for use during the dry season.
1000
900
Days of Average Flow
800
700
600
500
400
300
200
100
0
India was already facing drought conditions in 2001 before the monsoon rains
came with rains 30 percent below normal, resulting in serious water shortages. With a
sense of history about the water problems and motivated by the crisis, President Abdul
Kalam described the need for the RLP during his Independence Day speech on August
15, 2002. He was a respected engineer and strongly believed that the RLP would solve
many of India’s problems. Shortly thereafter, a writ was filed with the Supreme Court
of India. The issue at the heart of the case was the role of the government of India dur-
ing a period of time when the government had stores of food, yet people were starving
to death due to drought-related conditions. The court attempted to answer the follow-
ing questions:17
1. Does the right to life mean that people who are starving and too poor to buy
food have the right to free food from the state?
2. Does the right to life under Article 21 of the Constitution include the right
to food?
3. Does the right to food imply that the state has the duty to provide food to
people who cannot afford to buy food, especially during droughts?
The court responded as follows:
In our opinion, what is of utmost importance is to see that food is provided to the
aged, infirm, disabled, destitute women, destitute men who are in danger of starvation,
pregnant and lactating women and destitute children, especially in cases where they
or members of their family do not have sufficient funds to provide food for them. In
case of famine, there may be shortage of food, but here the situation is that amongst
plenty there is scarcity. Plenty of food is available, but distribution of the same amongst
the very poor and the destitute is scarce and non-existent leading to malnourishment,
starvation and other related problems.
Since water is such a burning issue in India, our task force took our charges very seri-
ously. For example, I appointed forty to fifty committees to look at social, political,
international and economic issues. We talked to most heads of the states and held 5000
meetings. We found that there was a disconnect between public opinion and the facts,
so we worked to raise the awareness of water issues.
According to Briscoe and Malik,19 the era of limitless expansion of groundwater
resources had to end and India had to rely more on surface water. In turn, this would
require a very large expenditure to rebuild some of the crumbling water infrastructure
already in place, which would put a financial strain on India. It would also require a
very different mindset and management style from the people who currently managed
water. These authors also discussed the difficulty of managing water in India:
In the eyes of many—including several of the very experienced Indians who wrote back-
ground papers for this report—the idea of such a modern, accountable ‘Indian water
system’ is a fantasy, given the dismal performance of the Indian state on water matters in
recent decades and the broader challenges of governance. Others point to ‘the hollowing
out of the Indian state . . . the growing middle-class exit from public services . . . and the
inability to grapple with the many long-term challenges facing the country.’
Sources: International Food Policy Research Institute (2002), Asian Development Bank and Interna-
tional Water Management Institute (2004), and authors’ estimates.
Some believed that the decentralized measures shown in Figure 9 would be enough
to substantially alleviate India’s water needs for a few decades. Most of the savings
would be achieved only with advances made by individual farmers, but it was not clear
why farmers would choose to implement these sometimes costly measures. In many
instances, farmers had few long-term rights and little ability to control the deliveries
of canal waters. Wealthy farmers who were able to tap into good aquifers at subsidized
rates did not want change and there was no regulation limiting the amount of water
that could be pumped from an aquifer, resulting in excessive withdrawals of water
and falling water tables in many aquifers. The amount of money collected in payment
1. Political risk: Getting the project approved and funded will be tremendously difficult.
Despite the growing water crisis, the political processes in India will make it difficult to
get all of the approvals needed and the huge costs make partial, or smaller scale imple-
mentation more likely.
2. Cost risk: India has a long history of cost overruns on big projects of all kinds. Corrup-
tion plays a part in driving costs higher as does the limited expertise of managers. There
is a big risk of significant cost overruns.
3. Engineering risk: Yes, our best engineers have studied these projects for years, but each
alternative is huge and complex and the climate may be changing. We simply may not
be able to deliver the amount of water predicted by the engineers for either project, no
matter how much effort and money we put into the project.
In terms of the political risk related to approval and funding at the scale that was
envisioned, Shindey decided to frame the range of possible outcomes by limiting his
thinking to the following:
1. A full implementation in which the full RLP or the full decentralized approach
was approved and funded;
Notes
1. The names of the individuals in the case have been disguised at the request of
the parties involved.
2. See the case Appendix for relevant historical information on India.
Geography
The Himalaya Mountains are 1500 miles long and are one of the highest mountain
ranges in the world. The Himalayas run along the northern edge of Pakistan, north
central India, through Nepal and through far northeast India. Water flowing south
Water
Although sacred to Hindus, the Ganges River was one of the most polluted rivers in
the world. The Hindus see the river as a goddess and believe that a bath in the river
results in the remission of sins. Believers travel long distances to place the ashes of
deceased relatives into the holy waters of the river—up to 40,000 partially and totally
cremated bodies are placed into the river each year at the holy city of Varanasi. More
than 1 billion liters of untreated sewage were also dumped into the Ganges and its
tributaries every day and up to 10 million people bathed in the river on religious
holidays. Industry also widely dumped pollutants into the river and its tributaries.
The fecal coliforms in parts of the Ganges River were 100,000 times the limit that was
considered safe for bathing, yet people still bathed in the river.
Several other rivers in India were nearly as polluted. Part of the problem was a lack
of appropriate treatment of sewage for India’s 1.1 billion people. The Central Pollu-
tion Control estimated that only 21 percent of India’s raw sewage was treated and that
more than 600 million Indians did not have access to toilets. Not only were other
rivers in India seriously polluted, many aquifers had been polluted by biological or
chemical pollutants including pesticides. Water quality problems created health haz-
ards for humans. UNICEF estimated that polluted water in India was a major cause of
diarrhea, which resulted in as many as one million deaths each year of mostly young
children.1
The prevailing winds reverse during the summer and bring summer monsoons up
from the south and drench much of north-east and east India. Eighty percent of the
total rainfall comes during the monsoons when some areas receive up to 400 inches of
rain in three or four months, causing swollen rivers to flood. For example, the Orissa
flood of 2001 in eastern India marooned 900,000 villages.2 Although flooding was
particularly common in the Ganges River basin and eastern India during the mon-
soons, other areas of India also flooded, as evidenced by the Maharashtra floods of
2005 near Mumbai on the west coast of India which resulted in the deaths of at least
Notes
1. Black, M. and R. Talbot, Water: A Matter of Life and Health, UNICEF, Oxford
University Press (2005).
2. Black, M. and R. Talbot, Water: A Matter of Life and Health, UNICEF, Oxford
University Press (2005).
3. Black, M. and R. Talbot, Water: A Matter of Life and Health, UNICEF, Oxford
University Press (2005).