1. Ground Water Development in India Prepared by: Prashant Gupta Program Facilitator, GOPIO.Connect Part of Study at Kellogg School of Management, 2005

2. Intent Ground Water Availability and Development Current Situation –Water Demand –Water Problems arising in Agriculture, Domestic, Industry One Recommendation in Agriculture Sector Questions and Answers Programmed for 15 minute presentation

3. Replinishable Ground Water by by 28 Indian States and 7 Union Territories (BCM/yr) Indias total annual replinishable underground fresh water is 433 BCM (Billion Cubic Meters) – 344 BCM through natural recharge from rainfall and 89 BCM from canal irrigation system. There are 12 major river basins, the largest is Gangetic Plain Aquifer with replinishable ground water at 206 BCM or 48%. Ground Water Availability Preliminary Data Source: Ministry of Water Resources Takeaway: India has been rich in Ground water and is one of the main reason of sustenance its variety of life species

4. Current Situation: Rising Water Demand 201020252050 WATER (BCM)LowHighLowHighLowHigh Irrigation 543557561611628807 Domestic 4243556290111 Industries 37 67 81 Power 1819313370 Inland Navigation7710 15 Flood ControlNot available AfforestationNot available Environment /Ecology5510 20 Evaporation Losses42 50 76 Total (BCM)6947107848439801180 Water Demand is Rising – estimated to grow 34% in next 25 years Domestic/Industry Demand Mix growing faster than Irrigation Needs Preliminary Data Source: Planning Commission of Government of India Takeaway: Ground water currently represents about 46% in Agriculture Supply and 80% of Domestic Supply. And its Growing

5. Water Trend in Agriculture Sector Falling Water Tables Water-Intensive High-Income crops putting pressure on aquifers levels Drilling Costs are increasing, reduce water supply for crops in many areas (if no budget) One of the factors in downward trend in Yield (less production on land) Small Farmers are being forced to opt-out of Agri Sector - Land Consolidation, Economic Pain Takeaway: Non-inclusion of water costs into crops has led to unabated use of groundwater to generate revenues without looking the long-term impact Preliminary Data Source: Ministry of Finance

6. Water Trend in Domestic Sector 230 million citizens who are without clean fresh water for domestic use 10% is urban population (28 million out of total of 280 million) and 27% is rural population (202 million out of total 740 million) Lack of clean water can be attributed to many factors (but not limited to): Geographic salinity in coastal areas and other contaminations such as Fluoride, Arsenic in Arid areas Waste disposal from urban areas and industry sectors Water Supply Management Takeaway: Clean water is a basic human right and contaminated access is broiling conflicts (one of the reason of social disorder) in many corners of the society Lack of Home Access to Clean Drinking Water by States and Union Territories

7. Water Trend in Industrial Sector Takeaway: Biodiversity is under tremendous pressure and additional economic burden needs to be put up on Industries for Waste Management Industrial Pollution has led to Aquifers Damage and bringing disease to entire biological system -Water-borne diseases to Children. According to a World Bank estimate, out of 1 million diarrhea deaths in India every year, more than 700,000 are children under 5, mostly in rural and urban slums (w/o clean water) -Organic loading of the subterranean environment such as toxic chemicals like pesticides, various salts (potassium chloride, potassium nitrate) and heavy metals like lead is hurting animal and plant species. -Water erosion in many semi-arid and arid regions has lead to decrease of soil fertility and land subsidence.

8. Recommendation in Agriculture Sector Inclusion of Water Economics in Crop Selection MODEL: TO CALCULATE WATER NEED TO GENERATE UNIT REVENUE FROM CROPS Area (A) = The land used for crop production (measured in million hectares) (Source: GOI) Production (P)= The weigth of total crop production (measured in Kilograms or kg) Yield (Y) = Production / Area (measured in Kg per hectare) Water Need for Crop Production (WNCP) = measured in Litres per Kg (Source: FAO) Producer Price of Crop (PPC) = measured in Rupees per 100 Kg (Source: FAO) Fixed Water Cost (FWC) = Rs. 0.25 per 1000 liters (mostly subsidized by State Governments) 33 crops were selected based on Export Potential and Domestic Consumption Sugarcane requires highest water consumption to generate unit revenue. Fruits such as Oranges, Grapes, Mango, Banana, Pineapple produces very high revenue per hectare, a good potential for exports and less water need. Recommendation: Government of India should consider water-tax on Retailers of water-intensive commercial crop-end user products and should look into providing tax-incentives for fruit industry

9. Questions & Answers Visit GOPIO.Connect: www.gopio.net/india_development