Monday, March 18, 2024

Not a drop to drink

 

“Don’t Work-From-Home, Go Home,” “India’s IT capital high and dry,” “Southern metropolis heading towards Day Zero” … are some of the headlines the media screamed about the current water crisis in Bengaluru. If reports are to be believed, people have been reduced to a bath once a week, using disposable cutlery, ordering out instead of cooking, using aerators on taps and cans for washing hands, lining up for water tankers and being fined for washing cars or sprinkling the gardens. IPL matches in the city scheduled shortly have come under uncertainty. How did a premium city come to this? 

The two primary sources of water for Bengaluru, the Cauvery river and ground water have been stretched beyond the limit. Against around 3,000 million litres required per day, the supply is around 1,500 million litres. The rapid urbanisation of the city and its surroundings meant that its lakes turned dry and toxic, gardens gave way to concrete jungles and water consumption grew by leaps and bounds. Lands reserved for green cover, wetlands, urban forests and river courses were rapidly de-notified. Its 262 lakes (around when I studied there in 1984) have come down to 81 now. 90 % of even these 81 are on the verge of extinction, as per Karnataka State Pollution Control Board. 

We shall be extremely myopic if we think this is a problem of Bengaluru alone and that too for a short while. India has been witnessing extremely rapid urbanisation. As per census data, 28.53 % of India’s population resided in urban areas in 2001. By 2017, this had grown to 34 % as per World Bank which estimates that, by 2030, 40.76 % of the country’s population will be in urban areas (400 persons/sq km). Slowly, all cities and later, all urban areas in India may attain Bengaluru’s “water-loo.” 

What’s the way out, then? Let’s take a look at Singapore. 

Compared to other colonised countries, Singapore got its independence from British rule very late, in 1965. One of the reasons was that the British didn’t think it could survive as an independent nation because it had serious inadequacy of water. It was only after a water agreement was signed with Malaysia in 1962 that an independent nation could be thought of. The Malaysian Constitution was also amended in 1965 to provide for an assured quantity of water supplied to Singapore. 

Singapore went on to become a thriving nation but at the back of the policy maker’s mind, its water conundrum has always occupied pride of place and apprehension. While grandstanding against Malaysia which was trying to negotiate a revised price and revised water treaty (“The day Malaysia stops water supply, my tanks will be on Malaysia border” ~ Lee Kuan Yew), Singapore did a few things. 

On the supply side, Singapore extended its available sources by desalination of sea water and reuse of waste water and stormwater. Wastewater discharge into streams is not permitted in 95 % of the area and in the remaining 5 %, it requires prior treatment. This is enforced strictly. The recycling of waste water has been so successful that it (called NEWater) is actually purer than tap water. However, so as not to affect sentiments, it is being used primarily for industrial purposes although part of it is blended into the domestic supply reservoirs also. Singapore identified “four taps” of its water supply, Water from local catchment areas, Imported water from Malaysia, NEWater and Desalinated water. Since one of the taps, Imports from Malaysia is uncertain, it has continuously tried to improve the other three taps, calling it the “Three-Tap-Strategy.” This was coupled with ABC – Active, Beautiful, Clean waters programme. [Acronyms have been around for a while!] 

“Whatever gets measured, gets done.” Singapore aggressively chased a metric called UfW to minimise. This is Unaccounted for Water, the difference between the quantity of water supplied to a city's network and the metered quantity of water used by the customers. It has two components -- physical losses due to leakage from pipes and administrative losses due to illegal connections and under-registration of water meters. This stands at 40 % for Delhi and 31 % for Bengaluru at present, against an internationally permissible level of 20 %. UfW in most Asian urban centres range between 40 % to 60 %. For London, it is 24 %. Singapore managed to plug almost all the leaks in the pipes and the systems and eliminated any illegal connections. It has achieved an astounding UfW below 5 %. 

However, it was on the demand side that Singapore wrought a miracle. 

Most countries charge higher for industrial and commercial use of water compared to domestic use. Singapore changed that and charged the same rate for both domestic and commercial use up to a reasonable amount of use per household (40 cubic metres per month). Beyond this, the rates go up steeply for the domestic consumption. Thus, industrial/ commercial users do not subsidise domestic users. [In India, domestic consumers use 90 % of the water but account for only 20 % of the revenues. Source: Asian Development Bank]. 

Instead of providing for lower “lifeline” tariff for poor households on humanitarian grounds, the tariff is kept the same for all but cash benefit transfer is given to the poor households. 

There are Water Conservation Tax, Water-borne fee (for treatment of effluents) and Sanitary appliance Fee. These make the water management financially self-sufficient. 

The water management staff remuneration is benchmarked on the Civil Service and corruption is met with exemplary punishment. 

The biggest enabler in Singapore has probably been taking the politicians out of the equation while setting tariffs. Politicians would necessarily have a vote-centric 5-year horizon which would keep tariffs artificially low or very sticky upwards. Let them play around with targeted subsidy through cashbacks (Direct Benefit Transfer) and let the tariff be on long-term considerations of water conservation and economising its use, and you have a winner. 

Singapore is not necessarily perfect. Although it has reduced its dependence on Malaysia for its water, even now 40 % of its water supply depends on the imports (down from 50 % earlier). However, let’s target a few things amongst what Singapore achieved more than a decade back: 100 % population having access to safe drinking water and sanitation; less than 5 % UfW; every drop of supplied water accounted for; an extraordinarily high water account/employee ratio (376); 99 % water bill collection efficiency; and a financially self-sufficient water management authority. 

The alternative is the doomsday Bengaluru forecast of “No water anywhere, let alone a drop to drink.” Replicated across the country.






Friday, March 15, 2024

Hubris


West Bengal has always had very long periods of continuous reign by a party, once for above three decades. Sometimes the reign becomes so prolonged and the ruling party becomes so entrenched that many of us bureaucrats and the general populace don’t believe that another party might ever come to power. Problem is, the ruling party of the time also believes so. 

One such party was winning every election hands down. There was a certain amount of popular support when they came to power. Then, some popular support was manufactured through massive social engineering so much so that the party affiliation became the person’s main identity. Many times, marriages were solemnised only when the party affiliations matched. Admissions to schools and colleges, getting a job, living in peace, everything revolved around the party. As someone quipped, “The state had withered away.” 

Further, being the ruling party, they could get away with certain things which would perpetuate their rule. The Panchayat elections were the highest-stakes elections. In one particular election, the word was that, if any one stood for elections against the ruling party candidate, the big leaders would visit his house and politely give him long, involved lectures on high Economics, Philosophy, Current Affairs and so on and try to convince him to withdraw his little candidature when such weighty issues were at stake. If he got convinced, well and good. Otherwise, they would just go away quietly, catch hold of a small child in the village and send a white saree (mark of a widow) through him to the wife of the adamant candidate. In sheer terror, many such people withdrew their candidature post-haste. 

In the halcyon days of its rule, the Party didn’t believe that there could ever come a day when they might be out of power in the state. In the West Bengal Panchayat Elections Act passed by them, there was an innocuous looking clause 42 which read: 

“The State Government shall, in consultation with the Commission, by notification, appoint the date or dates and hour or hours of poll for any election or bye-election.” 

The clause was anything but innocuous. This one sentence completely obviated the autonomy of the State Election Commission (SEC). As the ruling party could mobilise far more manpower and resources across the state for election related intimidation, rigging, manipulation and so on, it was advantageous for them to have the elections in one phase so regardless of the recommendation of the State Election Commission, they would go ahead with declaring the election on one date or some staggered dates as per what suited them. In the Centre, the Election Commission of India decides on the timelines and phases of polling depending on the threat situation, manpower availability and so on. They pump in extra security forces through such staggered dates or arrange the dates towards targeted security enhancement in certain areas. 

The other part was that the state would supply the security forces for the Panchayat elections. Hence, the state had the power not to supply enough so that unfair practices could have a field day. 

Ever since, except on one occasion when the matter went right up to the Supreme Court which intervened, the State Government has practically always decided on the date/s of the Panchayat election or the SEC has acquiesced. Coupled with the force situation, this has tilted the outcome very heavily in favour of the party in power. The same party which was being too clever by half in putting in the clause is now in opposition, ruing its own past machination and is bitterly protesting against the fallout of the clause. 

The same situation is now obtaining with the appointment of the members of the Election Commission of India (ECI). The Supreme Court had given a great formula of a Committee comprising the Prime Minister, Leader of the single largest opposition Party and the Chief Justice of India to select the members of ECI. This would have led to added credibility of the institution, its autonomy and its functioning. It would also have guarded against the ruling party of the day enjoying any unfair advantage or being seen to so enjoy it. Rather than staying with or improving upon it, the judgement has been scuppered through the latest Act which has made the selection process of the ECI members a farcical formality. The point is, neither any ruling party nor any leader will be there for ever. No party in power later would bother to change it as the current Act would be seen as advantageous to them. It is quite possible that this Act might come back to bite the same people who have brought it in, à la West Bengal. 

Why do parties and leaders think that they will reign for ever? I think, there is a word for it. Hubris.




Wednesday, March 6, 2024

The Talwar Amendment

 

The State Bank of India Act, 1955, as it originally stood, contained a clause in terms of which the Chairman of the Bank could not be removed before the expiry of the term of office unless there was misconduct on his part as proven through an elaborate Proceeding Enquiry. It was amended in 1976 to provide for termination of the Chairman without any cause, by giving him a three months’ notice. In the banking circles, the Amendment is known as the Talwar Amendment or Talwar Hatao Amendment. The Amendment was introduced with the single purpose of removing the then chairperson of the bank, R.K. Talwar from the office of the Chairman. 

What did Talwar do to merit this extreme measure? 

One of the borrowers of SBI, a cement company, became sick with mounting losses and approached the bank for “restructuring assistance,” a phrase made immensely popular later by a gentleman called Vijay Mallya. The bank assessed that the difficulties of the company were due to gross mismanagement and insisted that, as a pre-condition for the restructuring package, the Chairman of the company who was also the CEO should step down from the management and a professional management should take over the Company’s reins. The promoter of the sick company was a friend of the Prime Minister’s son and approached him for intervention. For the latter, who was grappling with more serious affairs of the country, this was a minor irritant. He called the Finance Minister and asked him to direct the bank to waive this requirement. The Finance Minister telephoned Talwar and asked him not to insist on a change in management as a condition precedent to restructuring. Talwar called for the details from the department and having satisfied himself with the merits of the case, informed the Finance Minister that it would not be possible for the Bank to waive the requirement of change in management. 

The Finance Minister sent for Talwar and told him that he had received instructions from “the highest authority” in the country who expected him to carry out the orders without demur. Talwar stood his ground and told the Finance Minister that there was no way for him to waive this requirement and the bank’s position would remain unchanged. The Prime Minister’s son decided to send for Talwar to “personally talk to him” and was shocked to hear from his minions that Talwar refused to come and see him on the ground that he held no constitutional authority and Talwar was accountable only to the Finance Minister. The Finance Minister was then asked to sack Talwar. 

During the seven years he was the Chairman of the Bank, Talwar had achieved a high degree of personal reputation and his removal from the office for what could be called a trivial issue would send shock waves in the industry. Secondly, when the matter was referred to the Legal department, the Legal department pointed out to the specific provision in the State Bank of India Act which guaranteed the Chairman the special protection against removal without sufficient cause. The Finance Minister sent for Talwar again and told him that the Government was planning to set up a Banking Commission to make recommendations with regard to the restructuring of the functioning of the banking system and asked whether he would be willing to accept the Chairmanship of the Commission. This was his way of easing Talwar out of the Chairmanship with a face-saver. Without batting an eyelid, Talwar told the Finance Minister that he would indeed be happy to head the Commission and he could carry out this job simultaneously with his existing assignment as Chairman of SBI. When the Finance Minister looked uncomfortable with this suggestion, Talwar asked him, “Mr. Minister, you seem to be very particular that I should not continue as the Chairman of the State Bank of India, is that correct?” The Finance Minister replied. “Yes Mr. Talwar, you know what the problem is. We all have the highest regard for your abilities but unfortunately you do not seem to be very flexible on this one issue which is of great importance to the highest authority in the country. If you do not want to accept any other position, I may have no option but to seek your resignation or in the alternative, to dismiss you from service.” Talwar replied, “Mr. Minister, I have no intention of resigning from my position. It is entirely up to you to decide whether you want to dismiss me.” 

CBI started investigating into any wrongdoings on the part of Talwar. They zeroed in on two things; Talwar’s monthly visits to Pondicherry and his appeal to some industrialist clients of the bank seeking donations for the Auroville project. Talwar’s attachment to The Mother and the Aurobindo Ashram was well known and he claimed that he needed these visits for what he called “recharging his batteries.” In any case, this could not be construed as a cause for his dismissal in terms of the Act. Secondly, not a single industrialist was willing to say that Talwar either spoke to him or in any way tried to persuade him to make the donation. All Talwar did was to forward to these clients an appeal signed by the Prime Minister of India and the Secretary General of the United Nations commending the Auroville project for support. CBI had to close the enquiry. 

The Legislation amending the State Bank of India Act to provide for summary dismissal of the Chairman was passed in record time and received the assent of the President without any delay. Armed with the new provision in the Act, the Finance Minister summoned Talwar once again and told him that if he did not resign from the service, there was no alternative but to remove him in terms of the new provision. Talwar told the Finance Minister that he had no intention of resigning and the Finance Minister could take whatever action he deemed appropriate. On the evening of the 4th of August, 1976 Talwar received a fax message from the Finance Minister sanctioning him 13 months leave (which he had not asked for!). Talwar left the Bank promptly at 5.30 PM which was his usual time of departure. There was hardly anybody to see him off. Everyone was scared even to be seen to be associated with him. 

[Source: Vaghul N., “R.K. Talwar Values in Leadership” accessed at https://11740092596917189242.googlegroups.com/attach/fcc91e7c041409f7/RK%20Talwar%20-%20Man%20of%20Admiration-2012.pdf?part=0.1&view=1&vt=ANaJVrHK9vAo_X1FgT8JTbi6RddDuCeDssxMjP8Qc0xzhx3tvM7n35nf2GcN1YBjphmV3cJnv1daqC1KVzNR2eGkOc8DC7ww7rUOGemoL5-Ht8qUq7ChCu0]

If Talwar was Chairman of SBI today, would he have signed on for the egregious petition before the Supreme Court seeking a three-month leeway (till after the election) to disclose who paid what to which party through Electoral Bonds? My sense is, No, not Talwar. This country has been built upon the spines of honourable people like Talwar. Politicians come. And then, they go away …



[R.K. Talwar, 1922-2002]