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irrigation season, type of system, and other parameters. Because water rates
are abysmally low, not enough funds are generated for proper maintenance
of irrigation systems, leading to poor quality of service. It is necessary that the
state governments evolve a policy for periodical rationalization and revision
of water rates so that the revenue generated by the irrigation sector is able to
meet the cost of operation and maintenance. However, in view of unreliable
and poor quality services, farmers are reluctant to pay increased water
charges. They may not be averse to paying increased water charges if the
quality of services is first improved. It is imperative that the tariff structure
is reviewed and revised with simultaneous improvement in the quality of
services provided so as to restore efficiencies. Rationalization of water rates
will also act as a deterrent to the excessive and wasteful use of water. A shift
toward fixing water rates on a volumetric basis is desirable. This will encour-
age farmers to avoid overirrigation and wasteful use of water, thereby
increasing water-use efficiencies. A uniform formula of water pricing for
the entire country would have no practical value. It may be helpful to rec-
ommend setting up an independent State Regulatory Authority for rational-
ization of water rates by each state.
7.5.4 Policies and Legislation

India adopted a National Water Policy in 1987, which was revised in 2002,
for the planning and development of water resources to be governed by
national perspectives. It emphasizes the need for river basin-based planning
of water use. Water allocation priority has been given to drinking water, fol-
lowed by irrigation, hydropower, navigation, and industrial or other uses.
Because water resources development is a state responsibility, all the states
are required to develop their state water policy within the framework of
the national water policy and, accordingly, set up a master plan for water
resources development.

7.6 SUMMARY AND PATH FORWARD

On comparing an average Indian industry with an optimally performing
global industry, the former can be seen to be far more water intensive than
its global counterpart. Indian industries are facing huge water crises due to
the current allocation level of only 8% of national water with 87% allo-
cated for the agricultural sector (National Water Policy, 2002). This led to
the devising of a new way of sustainable water use to satisfy the water
demand of industrial sectors both at current and at projected demand levels