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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

  1. Low tariffs and high NRW mean utilities lack money.
  2. They can’t fix pipes or install meters.
  3. 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.

The rooftop tank

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.

Thinking intermittent water saves water

It often wastes more through leaks and forces costly household coping.

Key takeaways
  • 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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