This paper briefly outlines the core issues that need resolution before water development, especially by the private sector, and efficient usage can take place. These water rights ought to be defined more functionally in order to include tradability. There is a need to move away from price based subsidies in electricity for irrigation and in irrigation water, to endowment based subsidies where these endowments can be traded. Administrative and organizational reform of parastatals in water is of vital importance. The starting point for the same would be the granting of operational autonomy and empowering leaders of water development departments. Creating institutionalized rules to overlay endowments and rights in cooperative water systems that can free these organisations from the free-rider problem will lead to efficient management of water and to the enhancement of its generation. Making a strategic shift towards more storage- especially in the Deccan and its extensions- and countering opposition from the post-modernist NGOs both within and outside the country through excellent policies as well as  actions to manage displacement and rehabilitation would also be necessary. River training for storage, canals, and recreation and navigation along with urban renewal can be an important way to finance vast infrastructure, the success of which would further develop cities and add to water resources as well.

Click here to download