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Delhi’s Water Crisis Worsens as Power Sector Shines: Time for a Utility Reform?
Every summer, Delhi residents brace themselves for two certainties—scorching heat and looming water shortages. The summer of 2024 has been no different, with severe water scarcity already causing disruptions and even triggering a fatal altercation. On the other hand, power services in the city are running smoothly despite record-breaking demand. In June 2024, electricity usage peaked at 8,656 MW without significant outages.
This contrast in utility performance hasn’t always existed. From 1957 to 2000, both electricity and water services were similarly mismanaged. Initially run by the Municipal Corporation of Delhi, both sectors were handed over to the Delhi state government in the 1990s. While the Delhi Vidyut Board (DVB) evolved into a reform-driven, performance-based system, the Delhi Jal Board (DJB) has continued to struggle.
By 1997, Delhi suffered power cuts exceeding six hours daily. In response, the government introduced sweeping power sector reforms in 2000, which included establishing the Delhi Electricity Regulatory Commission (DERC), unbundling DVB, and privatizing distribution through three discoms. These steps dramatically improved the city’s electricity infrastructure and accountability.
In contrast, similar reform efforts in the water sector have either failed or been implemented only in isolated zones with inconsistent results. DJB’s technical and commercial losses (non-revenue water) still hover at 58%, worse than 15 years ago. Inadequate oversight, outdated monitoring, sporadic reporting, and poor accountability plague the system.
Moreover, subsidies in the power sector are structured and audited through DERC, whereas water subsidies are merged with operational losses and covered through vague budget transfers. This obscures transparency and financial accountability.
Delhi’s transformation in electricity mirrors the success of another key utility—the Delhi Metro. Operating under the Companies Act and Metro Railways Act, it has become a global model for urban transport. Its success highlights what’s possible when utilities are run with autonomy, professionalism, and clear regulation.
To ensure future water security amid rising climate risks, Delhi urgently needs a similar institutional overhaul of its water sector. Empowering DJB with independent oversight, professional leadership, and robust infrastructure can transform water services as it did with electricity.
Political developments in Delhi could offer the momentum needed to revisit and relaunch water sector reforms. With the right mix of policy support and strategic direction, the Capital can once again set a national benchmark—this time, for water management.
— Written by Vandana Bhatnagar, institutional strategy specialist. Views are personal.
