Public Private Partnership in Drinking Water Supply of
Greater Mumbai
Sanjay Rode[1]*
Drinking water scarcity is a major concern in the Mumbai city. Demand for drinking water is continuously increasing over the period of time in the city but the supply is stagnant. The State government of Maharashtra and Brihanmumbai Corporation (BMC) does not take necessary steps of supplying more drinking water. Drinking has its values in terms of time, space, quality and quantity. The Tobit regression result shows that growth of population and commercial activities such as hotels, cinema houses, shops, eating-houses are demanding more drinking water in the city. The gap between demand and supply is continuously increasing. There is need to revise tariff levels, reduce wastage and promote the non-traditional sources of water supply such as rain water harvesting, recycling of water and ground water supply. The public private partnership in building dams and distribution of drinking water supply will reduce the current deficit of drinking water in the city. Similarly it will also be useful to solve the future demand-supply gap of drinking water.
* Assistant Professor at Center for Development Alternatives (CFDA), Ahamadabad, Gujarat
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Drinking water is a major issue in India. Due to change in the quantity and pattern of demand, the drinking water scarcity is widely viewed in different cities. Mumbai city is not exception to drinking water scarcity. The population, commercial units, educational, health institutions have increased in the city. Drinking water is demanded for different purposes and it is continuously growing. The daily supply of drinking water to city population is inadequate and there is a mismatch between demand and supply. Water supply is disrupted regularly in the city. It gets disrupted because of repairing, burst and joining new pipeline etc. Irregularity of water supply forces urban people to store water in iron, plastic drums or large earthenware. Everyday they struggle to obtain few litres of water. Rich people have different arrangements for drinking water supply but the poor in the slums do not have such arrangements. They are paying extravagant price for water. Safe drinking water is scarce across the city. Reliable drinking water can be brought at substantial cost. The amount of water, which a poor family uses, is depended on average earning of the family, distance of water, price of potable water and how it has carried. The lower income families are spending large proportion of their income for a few litres of water every day, which is necessary to sustain life in the city. The poor are more affected because of lower quantity and quality of water. They have to pay high direct and indirect costs due to water borne diseases. The direct costs include transportation cost, loss of wages and cost of medicines. The indirect costs include time spend in queue, travel time, time spend in the hospital and time spend by relatives. If the recovery period is more or repeated visits occur then the poor household has to borrow money from different sources. The financial loss due to water borne and water washed related diseases is difficult to measure. The poor people are not insured against any illness.
Mumbai city is the financial capital of India. Water should be provided on the basis of 24/7. Water supply affects on working population, hospitals, hotels and restaurants etc. Women and children cannot perform their daily routine activities. Present water supply is inadequate and there is need to find an alternative source.
Objectives of the Study:
This study is planned to examine the public water supply system in Mumbai city. The major objective is to examine the growth in demand and supply over years and identify the gap between demand and supply. This study also examines the costing, pricing of water and metering and billing and collection system. The last objective is to make recommendations on: making municipal water supply self-financing, efficient and modern.
Data and methodology:
Data for this study is obtained from Brihanmumbai Corporation (BMC). The ward wise 2001 census data is available on website of Municipal Corporation Greater Mumbai (MCGM). Data is obtained about the number of households, industries, slums, hospitals, schools, commercial establishments and government institutions. The Municipal Corporation Greater Mumbai (MCGM), Mumbai Metropolitan and Regional Development Authority (MMRDA) reports are referred for water supply schemes and investment. For this study, drinking water supply in United Kingdom, Water Bank projects on water supply –particularly Nepal and Sri-Lanka, Proposal on drinking water supply submitted by various municipalities to HUDCO are referred. Water conservation experts were interviewed. We have calculated water demand for domestic, industrial, commercial units based on the water demand norms. The total deficit of water is calculated as total demand minus total supply of water. The Tobit regression model is used to examine the water demand in the 24 wards. We have used Stata® 8.0 software for data analysis.
The Ministry of Drinking Water and Sanitation (2005) has defined that “Drinking water is water intended for human consumption for drinking and cooking purposes from any source. It includes water supplied by pipes or any other means for human consumption by any supplier”. Drinking water is also defined as water free from different insects. In short, the potable water should not have bacteria or insects and it should not create any harmful effect on human body.
Water supply system in Mumbai:
The water supply system of Greater Mumbai is more than hundred years old. Mumbai city has received first piped water supply in 1860. Ground water is not suitable for drinking purposes. In order to reduce the illness prevalence in the city, Brihanmumbai Corporation (BMC) and Government of Maharashtra (GoM) have been discouraged the use of water from wells and ponds. Water supply to Mumbai city is depended on six lakes. Bhatsa is one of the important sources of water to city and it supplies 1650 mld water to city. Tulsi is one of the old water resources but it supplies only 18 mld water to Mumbai city. Upper Vaitarna resource supplies 1025 mld water. The total water yield from Tulsi (18mld), Vihar (110mld), Tansa (417 mld), Upper Vaitarna (1025mld), Bhatsa (1650mld) and Mumbai-III (150 mld) is 3350 mld. Water is also supplied to en-route villages, which is 120 mld. Therefore the total water available for the entire city is 3230mld. Water supply fluctuates because of rainfall in the catchments area. If the rainfall in the catchments areas is low or drought like situation occurs, then Brihanmumbai Corporation (BMC) and Government of Maharashtra (GoM) announces water cuts in the city. The authority confirms that if the water level in various lakes is satisfactory then the supply is regular in the city. The level of the water is regularly observed during the monsoon period.
Pipelines bring the raw water from the lakes. Such water is treated before it is supplied to consumers. Water treatment is necessary because of water contamination by various sources at different points. The treated water is transferred to Bhandup and Yewai master reservoirs. The capacity of Bhandup Master Balancing Reservoir-1 (MBR-1) is 246 mld. The Bhandup Master Balancing Reservoir-1 (MBR-1) supplies water to the city, eastern and western suburbs. It provides water to A, C, D, K and H ward. The H/East ward is partly served by this reservoir. The Yewai reservoir supplies water to F/N and F/S ward. It is also providing water to M, N and L ward. They are partly served by this reservoir.
Water distribution system is very complex in the city. The water transmission (650 km) and service pipes (3200 km) are covering the entire city. Water supply to each ward is different and changes according to total water availability. The water pressure also gets affect due to time of water, stock of water, leakages etc. Each ward in the city has its own characteristics. The domestic, industrial and commercial establishments are also affecting the water distribution. There are 3 lakh metered water connections in the city. Nearly 83 percent connections are domestic connections including slums. The commercial connections are 15 percent. Industrial connections are very low (2 percent) in the city. There are 1.5 lakh un-metered water connections in the city [Times of India 2007]. Water is daily supplied to all the units. Water cuts, repairing of pipes, adding new pipeline are all regularly announced and advertised in the different newspapers by Brihanmumbai Municipal Corporation. Water balance is difficult to calculate because of lack of modern technical equipments. There are no sufficient zonal and district meters as well as metered outlets at reservoirs. Low pressure, regular maintenance, connecting new pipeline to existing pipeline, replacing old pipeline are the regular reasons for lower quantity of water supply in Mumbai. Water is continuously demanded to perform different activities in the city. If one day taps run dry, it means hospitals stop routine surgeries, commercial establishments such as hotels, restaurants order tanker supply. Women and children cannot perform their daily routine activities. Water quality affects on the health of citizen. Small children are affected more than others because of low immunity power and lack of knowledge of avoiding risk. Water contamination has immediate effect on diarrhoea. Brihanmumbai Corporation (BMC) staff regularly tests the quality of water.
The water quality in many areas of south Mumbai is far worse than the water in the suburbs. Ward A (Colaba, Churchgate, Nariman Point, Fort), B (Nagpada), C (Marine lines, Girgaum, Bhuleshwar) E (Byculla, Mazgaon) have the most contamination water supply. The water contamination level is more than 11 percent. The ward H/East (Bandra-Santacruz) shows the lowest contamination (10-28 percent) level. The reason of contamination is old water pipeline system, foul water seeps into pipeline during non-supply hours through leaks, tempered mains and faulty fittings [Times of India 2007]. Such water contamination leads to more illness and diseases in the city. Water borne related diseases and their effects are much severe. The effect on education, income is much higher than what is assumed.
Water tariff:
Drinking water is a public as well as merit good. All individuals have the right to an adequate, reliable, affordable supply of potable water. Water pricing must cover the capital cost, operating cost, maintenance expenditure. Drinking water has economic value in terms of space, time and quantity. Its uncertainty and quality increases further cost.
Table 1.1 Water Charges for Different Purposes (Rate per 1000 Litres)
No. / Category / 2007 / 2006 / 20021 / Slum area, Stand post, Residential chawls / 2.50 / 2.25 / 2.25
2 / Dharmashala, Asylum, Women’s hotels, Balwadi, hotels, All residential premises, Bungalows, Row houses, Offices of trade unions, Educational institutions, Gardens. / 3.50 / 3.50 / 3.50
3 / Halls for religions and social functions, Hospitals, Dispensaries, Piggeries, Coaching classes, Playgrounds Swimming Pools. / 10.50 / 10.50 / 10.50
4 / Industrial establishments, Dhobi-ghats, Ice factories, Photo studio, Xerox. / 18.00 / 18.00 / 15.00
5 / All shops, Mall, Stores, Parlors, Training Centres, Schools , Colleges , restraints , All hotels , Cinema halls, Multiplex-warehouses, Petrol pumps, Workshops , Garages, Swimming pools, Ice cream factories, Studios. / 38.00 / 25.00 / 22.00
6 / All three star hotels, Aerated water factories, Manufactories of bottled water. / 38.00 / 38.00 / 38.00
Source: 1) Brihanmumbai Mahanagar Palika, Hydraulic engineer’s Department 2) Mumbai Mirror (2007).
Recently, the Brihanmumbai Corporation has increased the prices of drinking water for commercial purposes. But the water charges for domestic and industrial purposes are low in the city. Slums, stand posts are paying only 0.25 percent whereas the residential premises, row houses, educational institutions are paying 0.35 percent water charges. Hospitals, dispensaries, halls for religions and social functions are paying 1 percent for water. Industrial establishments are paying 1.8 percent water charges. Shops, malls hotels, training centres, colleges are paying 3.8 percent. The water supply is different for different socio-economic groups in the city. South Mumbai and the richer class is continuously enjoying higher water supply with lower tariff.
Water demand in the city:
The domestic consumers are all individuals living in residential premises, bungalows, row houses slums and residential chawls. The industrial demand includes government owned Maharashtra Industrial Estates (MIEs), permitted factories, private industrial estates. The commercial consumers include commercial shops, offices, restaurants and trades. Hotels and cinema theatres, malls, multiplexes, petrol pumps are also included in this category. Institutional demand includes private and public schools, government and private hospitals including maternity homes, government offices and educational institutions etc. Other than above categories, there is demand of water from public ground and playgrounds, pay and park stands etc. Census of 2001 provides the detail information about each ward in the city. All wards are divided into six different zones. There are 24 wards in the city. Government of Maharashtra administratively fixes the boundary of each ward.
Water demand and norms:
In order to calculate demand for water, we have used the present norms applied by the Government of India and Brihanmumbai Municipal Corporation (BMC). The water demand for population is 135 litres per capita per day. We have assumed 4 persons per tenants irrespective of place and area in the city. Slums have lower demand, it is assumed as 90 litres per capita per day. The water storage facility is not available in the slum. The demand for shops is not taken into consideration because they do not have units such as kitchen and nahani. The quantity of water demanded by factories and office buildings is taken as 45 litres (25 litres for flushing Purpose and 20 litres for other domestic purposes) the maximum number of worker in each factory is assumed as 250 only. Based on above norms water demand is calculated in the city. Water demand is calculated according to different categories of consumers and zones.
∑Yit=∑i*n
Where, Yit =Total demand of water by ith units in period t. i=Total number of units
n= Standard norms of water demand
Water demand in zones:
Water demand in each ward is not similar. There are different domestic, industrial and commercial units in each ward. We have tried to calculate the demand for water in each zone.
Table 1.2 Water demand in different zones
Zones / Water demand (mld) / PercentZone-1 / 603 / 15.2
Zone-2 / 766 / 19.3
Zone-3 / 854 / 21.5
Zone-4 / 789 / 19.9
Zone-5 / 454 / 11.4
Zone-6 / 501 / 12.7
Total / 3967 / 100
The water demand in Zone 3 is 21.5 percent. It is higher than (854 mld) all other zones (Table 1.2) and the wards such as H/East, H/West, K/East, K/West have more demand of water. The density of population is very high in these areas. Slums, industrial locations are also located in this area. The demand of water in Zone 5 is low (11.4 percent). Wards L, M/East, M/West have less density of population and other establishments. It is important to understand the water demand for each unit and category. Brihanmumbai Corporation (BMC) has classified the water demand into 5 categories. The demand of water for domestic purposes is a major concern and always given a top priority in Mumbai city.
Table 1.3 Demand of Water in the City
Items
/ Water demand (mld) / PercentDomestic Demand
Population / 1796.76 / 46.96
Slums / 1524.69 / 39.85
Industrial Demand
Municipal industrial estates / 3.56 / 0.09
Private industrial estates / 22.57 / 0.59
Permitted factories / 271.28 / 7.09
Commercial demand
Private center tics / 1.60 / 0.04
Eating houses / 0.50928 / 0.01
Municipal/private markets / 0.25 / 0.01
Public sanitary convenience / 3.32 / 0.09
Shops and commercial establishments / 96.13 / 2.51
Motor garages / 13.92 / 0.36
Cinema house and theatres / 1.18 / 0.03
Institutional Demand
Municipal hospitals/maternity homes / 0.477 / 0.01
Fire hydrants/stations / 55.95 / 1.46
Municipal/private Schools / 21.56 / 0.56
Other private/Government hospitals / 9.98 / 0.26
Municipal welfare centres / 0.56 / 0.01
Municipal recreation centres / 0.39 / 0.01
Government welfare centres / 0.38 / 0.01
Miscellaneous
Public ground and playgrounds / 0.63 / 0.02
Pay and park stands / 0.01 / 0.001
Total / 3825.89 / 100
Table 1.3 shows that, the demand of water for the total population is 46.96 percent. For slums, the demand of water is 39.85 percent. The total demand of water from domestic sources is 86.71 percent. The demand from industrial sector is very low in the city. It is 7.7 percent only. The permitted factories have 271.23 mld demand. Demand of water from commercial sector is very low as compared to domestic demand. Commercial establishments and shops have less than 100 mld water demand. Among the institutional sources, the demand from fire hydrants and stations has 56 mld demand in the city. Municipal and private schools have 21.56 mld demand. Municipal recreation /welfare centres have less than 1 million liters a day (mld) water demand. In the miscellaneous category, the public ground and playground have 0.6mld water demand. The total estimated water demand in the city is 3825.8 mld. It is approximately closer to the water demand (3975 mld) estimated in the Brihanmumbai Development Report [MCGM 2006].
Regression results:
We have used Tobit regression model [Greene 2003] to examine the demand pattern in the city. Water demand is different in each ward and zone. The difference in demand pattern is because of population density, slums, industrial units and commercial establishments. The quantity of water demand is a mixture of discrete and continuous figures. Therefore Tobit model helps to identify significant water demand by domestic, industrial and commercial units.
Tobit Model:
Y*i=x’iβ+εi Where Y*i>0
The ordinary least squares estimates are smaller in absolute value than the maximum likelihood estimates.
Table 1.4 Tobit Regression Results
Variables / Co-efficient / Standard error / T testDomestic demand
Population / .00013* / .0000 / 257.69
Slums / .01814* / .0000 / 573.63
Industrial demand
Municipal industrial estates / .0329** / .0071 / 4.59
Private industrial estates / .0581* / .0024 / 23.56
Permitted factories / .0448* / .0000 / 468.24
Commercial demand
Cinema house and theatres / .0285** / .0029 / 9.62
Motor garages / .0094** / .00226 / 4.17
Eating houses / .00259* / .0001 / 21.89
Private center tics / .0051 / .0044 / 1.16
Public sanitary convenience / .0051*** / .0008 / 5.76
Shops and commercial / .00133* / .0000 / 197.03
Institutional demand
Municipal hospitals / .0904 / .0711 / 1.27
Other private/Government hospitals / .01459** / .00111 / 13.07
Municipal private schools / .00449 / .0048 / 0.93
Municipal welfare centres / -.0162** / .00416 / -3.91
Municipal recreation centres / .2509** / .0269 / 9.30
Government welfare centers / -.0310 / .0367 / -0.84
Fire hydrants / .0004 / .0003 / 1.53
Fire alarms / -.0256** / .0063 / -4.05
Miscellaneous
Pay and park stands / .0533 / .0110 / 0.84
Public ground and playgrounds / .00218 / .0049 / 0.44
Constant / .4944 / .2826 / 1.75
The water demand is positively related to domestic sources. Total population including slums in the city are continuously demanding more water for drinking, cooking, washing of clothes, sanitation, house cleaning etc. Their demand for water is positive and significant. Water demanded by the municipal industrial estates is positive and significant. Municipal industrial estates are specially created for employment, trade and commerce in the city. Government has provided subsidy on use of water and electricity. Therefore municipal industrial estates are using more water. Commercial establishments such as cinema houses and theatres have positive and higher demand of water. In the city, many people are regularly visiting to these places. While eating and drinking of water at these places, maximum water is thrown and taps are kept on. Water wastage occurs because consumers are not taxed or penalized. Therefore water demand at these places is positive and significant. There is considerable growth of vehicles in the city. The motor garages have also increased in the city. The people of the city often repair, give their cars for washing at different garages. Therefore the water demand in the city by motor garages is positive and significant. Water demand is positive and significant for eating-houses. Eating-houses require water for preparation of food, washing pots, and drinking. The demand of water for public sanitary conveniences is positive and significant. In Mumbai city, more than half of the population lives in various slums. They do not have adequate sanitation facilities. Most of them are using the public sanitary convenience in the city. Water used for flushing, hand washing is higher. Therefore water demand is positive and significant.