In an effort to conserve groundwater, the Central Ground Water Authority (CGWA) has introduced a Water Conservation Fee (WCF) that industries will be required to pay as of June 2019. The new ruling also affects commercial establishments and infrastructure projects, all of which must pay the WCF and secure a No Objection Certificate (NOC) from the government. However, the agriculture sector, along with defence establishments and non-electricity water extractors are exempt from these obligations. The NOC process will be online, facilitated by CGWA’s web-based application system. The fees applied will be contingent on the location of the groundwater extraction point and the amount of water extracted. For instance, extracting 20 cubic metres per day from a ‘safe’ block will cost a company ₹3 per cubic metre, while extracting over 5,000 cubic metres from an ‘over-exploited’ block could incur charges upwards of ₹100 per cubic metre. The main goal of the WCF is to curb large-scale groundwater extraction and discourage the establishment of new industries in critical and over-exploited areas.
Groundwater Usage in India
India is the world’s largest consumer of groundwater, responsible for roughly 25% of the global water extraction. Mainly used for irrigation, extracted groundwater in India accounts for an estimated 228 billion cubic metres annually – around 90% of the total groundwater extracted. The remaining 10%, equivalent to 25 billion cubic metres, is used for drinking, domestic needs, and industrial purposes.
Implications of Water Conservation Fee (WCF)
The introduction of WCF serves several purposes. It aims to deter the setting up of new industries in critical and over-exploited areas. It also seeks to discourage large-scale groundwater extraction by industries. Lastly, it hopes to stimulate industries to implement measures for efficient water usage and to dissuade the expansion of packaged drinking water units.
Incorporating Other Conservation Measures
In addition to the WCF, the revised guidelines include provisions for penalising polluting industries and mandatory installation of digital flow meters. They also promote the use of recycled and treated sewage water by industries.
Groundwater Extraction Statistics
| Usage Area | Annual Groundwater Extraction (Billion Cubic Metres) | Percentage of Total Extraction |
|---|---|---|
| Irrigation | 228 | 90% |
| Drinking, Domestic and Industrial Purposes | 25 | 10% |
Exemptions in the Water Conservation Fee (WCF)
While the WCF applies to industrial units, businesses, and infrastructure projects, certain entities are exempt from this fee and the requirement for a NOC. These include the agriculture sector, defence establishments, and any users not employing electricity to extract water.