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Ramani Iyer,
Vice-Chairman, Forbes Marshall. |
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Water: A Birth Right
Providing clean drinking water to all has emerged as a major challenge before all committed Indians, holding any position of influence - policy makers, NGOs and Corporates. With water bodies being increasingly contaminated and government unable to provide clean water, private players have stepped in. Bottled water business and home based RO (Reverse Osmosis) water treatment plants have flourished in India during last decade. However, while it may provide good option to urban middle class Indians, millions of rural and semi urban citizens continue to drink unhealthy water.
Does this increasing dependency on treated water lead to total abdication of municipal water supply or is bottled water just a temporary phenomenon?
To understand these and other related issues, Ashutosh Bhardwaj spoke to Ramani Iyer, Vice-Chairman of Forbes Marshall, a seasoned corporate professional, with over twenty years of experience. A committed Indian, he has unflinching faith in the wisdom and destiny of his country. He quotes Gokhle and Tilak at ease, even paraphrases Tilak's proclamation - Water is my birth right.
He is truly concerned that growing water business may leave poor out of their ambit, yet, he is also confident that these are the corrective forces of history and nature would find its own course.
You advocate clean water for all? How can we ensure it?
The root cause of any water problem is mismanagement. If you look at the root cause of mismanagement, you can definitely ensure that whatever be the process, whatever be the source, you get clean water. We must understand that water is not a resource, which is lost forever. It's not like oil. It's always available.
0.3% of the available sweet water on earth is good enough for our need - both domestic and industrial. If you do not get water, it is certainly mismanagement. Second, if you do not take care of it, you do not get clean water. You do not need high technology to purify water. Simple methods are sufficient for it.
What role can corporate sector play here?
Corporate sector can take the responsibility of ensuring the communities in which they function and live, get the kind of water their own staff gets. Two, they can ensure that the community influences the authorities to provide clean water. Three, they have a very powerful voice to bring out policy change. They can leverage their voice. Companies like Coca Cola are doing a wonderful job in providing water to the community.
It is nice to hear these words from you. However, does corporate sector ever acknowledge their role in contaminating water? Indian Industry is one of the biggest polluter of water bodies. It generates over 110,000 million litres of wastewater a day.
I do not have the figures to contest. But, I do not think that major industries, certainly the one I deal with, are contaminators. Corporate sector is bound by norms of Central Pollution Control Board. There are several cases where CPCB has pulled up corporate sector for contaminating water. Corrective actions have been taken. I can give you several examples where Corporates have been responsible enough to treat water before discharging it in water bodies.
I can also give you an example. I belong to Delhi and it is widely believed and accepted that industry has been one of the major factors responsible for polluting Yamuna and causing its silent death thereby.
Well, you are right in a way. But you also must have heard that the Supreme Court in one case came down very heavily and ordered closure of polluting industries.
It was Shriram Fertilizer's case, where Justice Bhagwati delivered a landmark verdict on Article 32 of the Indian Constitution.
Right. Entire industries moved out of Delhi since then. You might say that was a great thinking of Shriram Group but the fact is that all organized corporate bodies are looking at this issue and dealing with it.
Many companies these days are entering into water business for water treatment or distribution. They are providing clean bottled water. They undoubtedly meet the demands of those who want clean water and can pay for it. But, is it a genuine alternative to municipality supplied water? There is huge population in India which can not buy water at Rs. 14/- per litre.
Let me put it this way. This bottled water is a very queer Indian phenomenon. Nowhere else in the world you find it. It is simply because we have a new class of Indians, who have grown with new education, who look at the world with a different view and do not trust anything where they suspect something could be wrong. They are the root reasons why bottled water industry has grown tremendously in India.
Demand has spurred growth of this industry. But, this industry is a very small, minuscule portion of meeting the demands of drinking water in India. The percentage of people who take this water is probably just above 2% of the adult population of India.
It can be also because this is the only population which can afford this costly water. You and I can afford it but not the vast population who has little means to survive. My concern is that these bottled water companies are segmenting the population into, to borrow a phrase from Marx, water-haves and water have-nots. In this conference we hear panelists, all big names, clamouring for water to be a human right - equal water for all. It, however, emerges people who consume Bisleri have more rights than those who take municipal tap water.
You are absolutely right. This is where I say that along with rights come responsibilities. We, the so-called privileged, have a responsibility to ensure that everybody gets clean water. How do we influence policy, talk to the government, build the right environment, usher in real democracy - it's all our responsibility.
I have a straightforward question. As a senior industry leader, I expect a candid answer from you. Is it time that we should start reducing our dependency on bottled water? I am not advocating ban or prohibition on bottled water manufacturers; it's their right to do so. But shouldn't we look for alternative options?
Since you asked me to reply candidly, I respond candidly. I would rather say ignore this phenomenon. Nature would find its own course. As we build better water supply systems, people would be less dependent on bottled water.
It's a good option. But, it's not happening at all. Home based Reverse Osmosis water treatment plants have stormed individual households.
Fair enough. But all of this would be localized because India is much larger than the urban area you and I live in. I would again say as we develop better water supply systems, it would find its own natural course.
I agree with your hopes. But I also worry, instead of building better water systems; individual water treatment plants may enter more and more semi-urban and subsequently rural areas. It may mark an actual abdication of government's responsibility of providing clean drinking water to all.
You are right. In fact, in Europe most of the urban areas have their own plants of recycling waste water. Most of the buildings in Germany have such plants with the result that waste water is used for other purposes. They draw only limited water from public drinking water supply.
Yet, you can never get away from the role of the government to provide drinking water. Wherever you are, government has a responsibility to ensure water for all.
Why we are not providing it then? Is it that costly?
It is not so expensive. It is possible to deliver to everyone at an affordable price. Charges for water supply only prevent misuse. We can not apply terms on investment and profit motives in any water supply mechanism in any part of the world.
If you are making a commercial criterion and looking at returns on investment in a water supply scheme - it can never be successful. The water charge a user pays for drinking water is a small part of the total cost. It acts to ensure that there is no misuse rather than fulfilling actual total cost.
That's the way it is all over the world. In India there are lots of places where the cost of metered water supply does not cover the investment.
In fact, water cess is a lot more historical. We all have had water cess. It's a historical fact. We have continued to play around with water cess rather than considering what amount people can pay or are willing to pay for it.
You suggest water has become an emotional commodity for us, which prevents any meaningful discussion on its costing.
People are realizing that they must pay for water. And they are willing to pay. In cities like Chennai, which has better water supply, people have been spending as much as 2000/- per month per family for just drinking water. I am not exaggerating. My daughter lived in Chennai just recently and her monthly bill for drinking water was 2000/-.
Do not you find it a total failure of our administrative system? Government is at least expected to provide drinking water? Who can afford such costly water?
I would say that this is a part of the evolution of our Indian society. Indian society is changing. Of course, only middle class can afford this kind of water.
What business do you foresee for water in India?
I think urban water supply would become much more modern, updated and equitable. Lots of technology and sensitivity for the issue is coming.
In rural areas, if we are able to handle decentralized, NGO driven water schemes, we have hopes. If they are not, most of the rural people would migrate to towns.
I do not think there is a huge water market per se. Water is not a commodity which can be traded. It continues to be in the public sector. The market for bottled water is not huge.
You have had a vast experience in public life. How do you find water related issues changing during last decades?
Between the sixties to today, the amount of water used for industrial purposes has grown possibly two thousand times. With industrialization of the country, industries are drawing more water than ever. Resultantly, water supply meant for citizens has been neglected. That is getting corrected through some of those units (private water business), you mentioned.
Water business phenomenon is a corrective force of history but it also involves profit motives. Industry has taken too much of water, leaving water quality poor and now private business has stepped in to capitalize upon this opportunity to sell bottled water to rich consumers.
No. I would say there are great entrepreneurs who saw great opportunity to provide bottled water to the people who demanded it.
There is huge profit margin in bottled water business. Production per litre is hardly a few paise and it is sold at 14/- per litre. Do you think these profit margins can be evened out? Can we expect prices going down in future?
I think it would have its own natural course. This business will probably grow but not for the larger purposes of providing water to general public.
Like I said, there is enough water for us all but not for enough for everybody's greed. I have great hope in this country and in its future. I firmly believe the destiny of my country is far superior than anything anybody has seen so far. I am sure things will change for the better.
Ashutosh Bhardwaj
27 Nov 2007
Hyderabad
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