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How Safe Is Rural India’s Drinking Water Supply Through Jal Jeevan Mission?
India needs a comprehensive Water Quality Index to succinctly report on various quality parameters

20 October 2022

In October 2022, more than 50 per cent of India’s rural households have a tap connection on their premises. The Jal Jeevan Mission, under which this expansion has taken place is targeting 100 per cent connections by 2024. Eight states and Union Territories (UTs) have already achieved tap water connectivity for 100 per cent of the households.

While the infrastructure penetration has clearly improved, is the drinking water supply ‘safely managed’ in rural India?

According to CEEW analysis, the proportion of rural households with access to an ‘improved’ drinking water source within the premises doubled between 2011 and 2018. However, this is the only comparable indicator from the available data sources across the years.

What are the current data sources on rural drinking water services?

Currently, four primary government sources report data on rural drinking water services in India — the Census of India, the National Sample Survey (NSS), the National Family Health Survey (NFHS), and the Integrated Management Information System (IMIS) Dashboard under the Jal Jeevan Mission (JJM). However, as these surveys fulfil varied objectives, they do not include comparable standardised indicators. Let’s examine what their current gaps are.

1. These surveys are undertaken with different frequencies and mandates. On one end is the Census of India, last undertaken in 2011, while on the other end is the IMIS Dashboard that provides data in real-time. Between these we have data from 2018 from the NSS, and 2019-21 from the NFHS.

2. The unit of analysis of these surveys is also different. While the Census, NSS, and IMIS measure data in households, the NFHS measures it in terms of population.

3. At the intersection of everything, there is no harmonious understanding of rural drinking water quality, as the indicators are not reported by all the data sources. This makes it difficult for policymakers and water quality managers to arrive at the steps needed to increase access to safely managed drinking water services in rural areas.

Table ES 1: Data and information provided by various national government sources only partially cover all components of safely managed drinking water services

improving water quality index india

Source: Authors’ analysis
Note: *HHs refers to households

Why do we need a standardised Water Quality Index?

As the Jal Jeevan Mission increases penetration of physical access to water infrastructure, the need arises to measure whether these services are ‘safely managed’ or not. India needs a comprehensive Water Quality Index (WQI) that can standardise the water quality data available from different sources, and succinctly report on the several water quality parameters currently used in the domain.

A WQI would provide a single score that helps classify source water quality as excellent, good, medium, bad, or very bad. These scores can then be used to monitor changes in water quality over time, and highlight areas that need further investigation. Moreover, standardised scores are easier to communicate to the public and have the potential to increase citizen engagement with issues in the water sector.

The use of emerging and existing technologies in water monitoring needs scaling and investment. For instance, the Internet of Things (IoT)-based smart water supply monitoring system piloted under JJM can be extended to cover household-level water supply and quality parameters.

‘Har ghar nal’, said the Centre in 2019 as it launched the Jal Jeevan Mission. Since then, the mission to put every household on the water grid has only gone from strength to strength. The question now is of the jal from the nal. The next steps in this journey come from robust data collection and making ‘quality of water’ the talking point when it comes to drinking water accessibility.

For the full list of recommendations, read our report ‘How Safe are Drinking Water Services in Rural India?’ here.

Poojil Tiwari is a Communications Associate at the Council on Energy, Environment and Water (CEEW), an independent not-for-profit policy research institution. Send your comments to [email protected]

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Approach for the Regulatory Treatment of the UDAY Debt Takeover

Prateek Aggarwal, Tarun Mehta, Chanmeet Singh Syal and Vaibhav Pratap Singh
October 2022 | ,

Suggested Citation: Aggarwal, Prateek, Tarun Mehta, Chanmeet Singh Syal, Vaibhav Pratap Singh. 2022. Approach for the regulatory treatment of the UDAY debt takeover. New Delhi: Council on Energy, Environment and Water.

Overview

This study is a first of its kind and it reviews and analyses the impact of the regulatory treatment of the Ujwal DISCOM Assurance Yojana (UDAY) debt takeover on distribution companies (discoms) and consumers under two approaches: Approach A examines the regulatory treatment by state electricity regulatory commissions (SERCs) and Approach B looks at treatment based on financial principles.

Discoms from 16 states participated in the Ujwal Discom Assurance Yojana (UDAY) scheme for their financial turnaround and operational efficiency improvement1. As of 30 September 2015 (the launch date for the UDAY scheme), the total debt of the discoms of 15 states stood at INR 3.7 lakh crore, i.e.~93 per cent of the total debt of discoms in India2. Under the UDAY scheme, state governments were to take on over INR 2.3 lakh crore of discoms’ debt (~75 per cent of the INR 3.7 lakh crore debt).

The two approaches for regulatory adjustment provides insights for the Ministry of Power (MoP), Forum of Regulators (FoR), Appellate Tribunal for Electricity (APTEL), distribution companies (discoms), state electricity regulatory commissions (SERCs), state governments, and sectoral experts.

Key Highlights:

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  • State electricity regulatory commissions using certain assumptions and available data, adjusted the UDAY debt takeover against the revenue gap (RG) or regulatory asset (RA) in tariffs and true-up orders (Approach A). This adjustment will impact discoms’ future revenue recovery as captured by the RG or RA.
  • Our review suggests a disproportionate distribution of the benefits of the UDAY scheme to consumers (in Uttar Pradesh, Madhya Pradesh, Tamil Nadu, and Jharkhand) and discoms (in Rajasthan) in Approach A1.
  • The UDAY debt taken over by state governments was converted into grants and equity. In the absence of details on the takeover/conversion of loans against RG or RA, SERCs can adopt the widely accepted financial principles to adjust the grants and equity provided under the UDAY scheme against RG or RA (Approach B).
  • The Approach B-based regulatory treatment (rooted in financial principles) could result in an improvement in discoms’ financial position cumulatively by INR 58,276 crore in Uttar Pradesh, Madhya Pradesh, Tamil Nadu, and Jharkhand3. This, in turn, would also reduce discoms’ dues to generation companies.
  • Approach B based regulatory treatment in Rajasthan can provide relief of INR 26,886 crore to electricity consumers in the form of reduction in unfunded revenue gap.
  • The Approach B methodology strengthens discoms’ balance sheets and further helps augment their investments under the Reformed Distribution Sector (RDS) scheme.
  • SERCs should consider adopting Approach B for the regulatory treatment of the UDAY debt takeover. This will require discoms, state governments. and SERCs to work together for the timely recovery of accumulated RG or RA via refinancing of regulatory assets, regulatory surcharges and tariff hikes.
  • State governments in seven states (Andhra Pradesh, Himachal Pradesh, Telangana, Madhya Pradesh, Uttar Pradesh, Tamil Nadu, and Jharkhand) need to convert their discoms’ cumulative debt worth INR 47,672 crore into grants/equity.
The Ministry of Power (MoP), as a signatory to the UDAY Memorandum of Understanding (MoU), should share a guidance note with state governments, discoms, and SERCs to revisit the existing adjustment in Approach A. For all ongoing and future schemes, stakeholders such as MOP, state governments, discoms, and SERCs should work in close coordination during the designing and implementation of such financial schemes.

Notes

1  Overall, 32 states participated in the UDAY scheme. While 16 states participated to improve discoms’ financial and operational efficiency, the other 16 states participated to improve operational efficiency only.

2  Authors’ analysis based on the UDAY MoU for the 15 states that are covered in the study. Jammu and Kashmir has been excluded from our study due to a lack of data in the public domain.

3  Authors’ analysis based on the five states with reliable data

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CEEW-CEF | Advancing a low-cost energy transition in Viet Nam

11 Oct 2022   |   10:00-13:00 ICT

The Centre for Energy Finance at the Council on Energy, Environment and Water (CEEW - CEF) welcomes you to a session on 'Advancing a low-cost energy transition in Viet Nam' on 11 Oct 2022, 1000-1300 ICT at the Meliá Hotel, Ha Noi, Viet Nam.

Viet Nam announced its intention to decarbonise its economy and achieve net-zero greenhouse gas (GHG) emissions by 2050 at COP26. Decarbonisation of the power sector, the largest contributor to economy-wide emissions, is central to the attainment of the net-zero goal

CEEW has, over the past several months, been developing a financial solution to bridge the gap between elevated perceptions of curtailment risk at present and a future grid that supports greater renewables penetration. The session will introduce its report 'Viet Nam Grid Integration Guarantee: A financial solution to mitigate curtailment risk for renewable energy projects'. This will be followed by a moderated panel discussion with experts on the Vietnamese power sector. The session will close with a networking lunch.

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