Punjab not keen to set up water regulatory body

Tuesday, 25/09/2012

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CHANDIGARH: With the Punjab government apparently refusing to constitute a state-level Water Regulatory Authority (WRA), the state is set to be deprived of about Rs 390 crore of central aid for the upkeep of its canal network, a major source of irrigation and drinking water.

The 13th Finance Commission recommended the constitution of the WRA on the lines of the state-level electricity regulatory authority as a pre-condition to get central assistance, which amounts to about Rs 520 crore, spread over four years.

The first annual instalment (Rs 130 crore) of the assistance was released earlier this year, but the subsequent ones are to come only after the WRA starts functioning.

“The gove r nment i s not willing to set up a regulatory authority as it tantamounts to the Centre’s indirect interference in the state’s water affairs,” said chief engineer, canals, AS Dullet.

He said the chief minister had written to the union finance ministry that funds be released without imposing any condition for refurbishing the canal system in the state. “The Centre’s reply is yet to come,” he added.

“The release of grant (assistance) is incumbent upon each state setting up the WRA. Each WRA is to be mandated to regulate tariff charges for surface and subsurface water used for domestic, agricultural, industrial and other purposes,” says a communiqué from the finance ministry.

About 77 lakh acres of agricultural land is irrigated in Punjab. The state government charges Rs 150 per acre every year for the use of canal water for irrigation, which fetches revenue of Rs 115.8 crore. Acting on the Centre’s recommendation, Maharashtra and Andhra Pradesh have already set up the WRA.

“In case Punjab agrees to form the WRA, it can increase its revenue and also get central funds,” says the communique.

Apart from fixing the tariff for the use of water by various sections of consumers, as mandated by the finance ministry, the WRA would also determine and regulate the distribution of entitlement for various categories of users as well as within each category. The WRA is also expected to periodically review and monitor water sector costs and revenues.

Irrigation minister Janmeja Singh Sekhon said, “The chief minister is not keen on setting up the water regulatory body. Still, we are taking legal opinion and trying to understand the Centre’s motives. We want to figure out whether such a regulatory body would infringe upon our right over canal water.”

“We are apprehensive that the Centre might withdraw assistance after we set up the WRA,” Sekhon added.