1. Chitkala Zutshi Member (Water Resources Economy) Maharashtra Water Resources Regulatory Authority Mumbai India Water Week 2016 New Delhi 4-8 April 2016

2. Sectoral Water Use in Maharashtra Average Annual Availability : 164 BCM Allocated by interstate tribunals: 126 BCM Utilizable water: Surface = 67 BCM, Groundwater = 21BCM Surface water use in 2013-14: 30 BCM Sectoral surface water use was as under

3. Before the Act came into force, water rates were fixed on an ad -hoc basis for the recovery of the O&M cost. Provisions in MWRRA Act,2015 for Water Pricing Section 11 (d) : To establish a water tariff system, and to fix the criteria for water charges at sub-basin, river basin and state level after ascertaining the views of beneficiary public, based on the principle that the water charges shall reflect the full recovery of the cost of the irrigation management, administration, operation and maintenance of water resources project. Section 11 (u) : The authority shall review and revise the water charges after every three years. Provision in MWRRA Act 2005

4. Draft Approach Paper prepared in October 2008 and discussed in Stakeholders’ meeting at nine district places during Feb-June 2009 Based on stakeholders response, approach paper was revised and draft criteria was prepared, The draft criteria was posted on the Authority’s website and kept at all talukas for the perusal of beneficiary public, Stakeholders consultation meetings held at six revenue divisional headquarters and state level workshops conducted for discussing the revised Approach Paper and the draft criteria, Based on comments received, criteria for determination of water tariff was finalized and sent to the Govt. for preparing a tariff proposal, As per the criteria percentages of cost allocation were - Agriculture (21 %), Domestic (23 %) and Industrial (56 %) Tariff proposal was again kept at all talukas levels for public consultation, and Tariff order was issued in June 2011. First Tariff Exercise for the period 2010-13

5. Second Tariff Exercise for the period 2013-16 Draft Approach Paper prepared in March 2012 and placed at all talukas for inviting comments. Based on stakeholders’ response, draft criteria was posted on website of the Authority and kept at all talukas for the beneficiary public. Studies of “Impact of the previous tariff” and “Alternative cost allocation matrix” carried out through consultants and draft criteria were revised with the addition of the parameter namely, “ impact on water quality”, Stakeholders’ consultation meetings at six revenue divisional headquarters and state level workshops conducted for discussion on the revised draft criteria during Jan 2014, Based on the comments received, the criteria for determination of water tariff was finalized and sent to Govt. for it’s draft tariff proposal.

6. Cost Allocation Matrix for the Second Tariff Exercise: 2013-16 Weightages for parameters Proportion of O & M cost allocation to different sectors ParameterAgriculture Domestic Water Industry Total Affordability15 70100 Quantity & Accessibility 601525100 Timeliness203050100 Impact on Water Quality 1045 100 Parameter Agricultu re Drinking Water Industry Affordability (60%) 15x0.6 = 9 70x0.6 = 42 Quantity & Accessibility (10%) 60x0.1 = 6 15x0.1 = 1.5 25x0.1 = 2.5 Timeliness (10%) 20x0.1 = 2 30x0.1 = 350x0.1 = 5 Impact on Water Quality (20%) 10x0.2= 245x0.2= 9 Effective cost allocation (100%) 192259 Cost allocation

7. Weightages given to the different parameters are more or less subjective (although generally accepted). The measurement of volumetric supply is not based on infallible technology The capital cost of irrigation projects not taken into account. Major repairs not included. Pricing still not high enough to impact water savings. The cost of fully treating wastewater/sewage by urban bodies is not always included in the retail tariff, resulting in inadequate capacity for treatment and consequential pollution. Shortcomings Perceived in the Approach & the Policy

8. www.mwrra.org mwrralibrary@yahoo.co.in