The Economics of Water in India
City Water and Non-Revenue Water
Why Indian cities supply water only a few hours a day, how much is lost to leaks and theft, and why utilities struggle financially.
Most Indian cities supply piped water intermittently, often for just a few hours a day.
Non-revenue water
Non-revenue water (NRW) is water that is produced but not billed, due to:
- Leaks in old pipes.
- Illegal connections.
- Faulty meters or unmetered supply.
In many Indian cities, NRW is estimated at 30 to 50 percent, compared with under 10 percent in well-run cities abroad.
Consequences
- Lost revenue for utilities.
- Less water for customers.
- Contamination: when pipes empty, dirty water can seep in.
The vicious cycle
- Low tariffs and high NRW mean utilities lack money.
- They can’t fix pipes or install meters.
- Service stays poor, so people resist paying more.
Coping costs
Households spend on storage tanks, pumps, filters and bottled water, often costing more than proper piped water would.
A family in Bengaluru gets municipal water for two hours every other day. They store it in a rooftop tank, run an electric pump and buy a water purifier, spending thousands a year.
It often wastes more through leaks and forces costly household coping.
- Most Indian cities supply water intermittently.
- Non-revenue water is often 30 to 50 percent.
- Low revenue and poor service create a vicious cycle.
- Households spend heavily on coping.
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