Most of the poor people of this poor state live in villages and are dependent on agriculture for their livelihood. As one of the natural resource rich states of this country, Orissa has plenty of forest and mineral resources. In addition to that it has a vast storage of water resources. Notwithstanding the gradual decrease of the annual rainfall year after year because of deforestation, Orissa is still considered to be one of the highest rainfall states. The rivers like Mahanadi, Brahmani, Baitarani, Subarnarekha, Budhabalanga, Rushikulya etc. are very notorious for the havoc they create during floods. The amount of underground water stored in Orissa is much more than the national average. Still it is a well-known fact that many parts of Orissa suffer from drought every year. Despite plenty of water resources most of its cultivable land is rain-fed and with much difficulty cultivators could hardly raise one crop a year. This is mainly due to lack of proper utilization of existing water resources. In the post-1947 era govt. after govt. have been making promises, but the result is that hardly a little more than one-fourth of the state’s agricultural land is irrigated.

Orissa’s water resources constitute mainly all the existing underground and over ground water sources. Since it is a high rainfall state, the scarcity of rain water is not there. Even the annual rainfall in regular drought prone districts like Kalahandi, Bolangir is more than that of many Indian states. In rainy season a large number of streams come out of the hilly regions of the state and they continue to flow for 4-6 months. Thousands of tanks and ponds present in the villages and towns become full in rainy season and are being used for drinking, bathing and irrigating. There are many perennial streams and small rivers that are used for various purposes. Apart from these over ground sources Orissa is having a vast storage of ground water. As per the Central Ground Water Board, the total storage of ground water in the state is nearly 2330 crore cubic meters.

Population Dependence

86% of Orissa’s total population lives in rural areas which is more than the national average of 74.28%. Nearly 64% of the total population and 74.6% of the total work force in the state are engaged in agriculture. Since the state’s agricultural prospects depend on the availability of water system, the importance of management of water resources is more vital for the economic growth of its people. Besides this, the state’s total population is dependent on these water resources for their daily needs. The growth in the field of animal husbandry, electricity production and industrialization is strongly dependent on the proper management and utilization of these water resources.

Resources Status, particularly of the last 10 years

Though Orissa is having a vast ground water reserve, much of it is not utilized for irrigation. According to the Reserve Bank of India Report, while Punjab is utilizing 95% of its ground water in agricultural activities, Orissa is hardly able to utilize 0.5% of its total ground water reserve. Due to lack of emphasis on lift irrigation system, most of our land is rain fed despite having plenty of ground water. The Orissa Lift Irrigation Corporation (OLIC) which is in charge of state’s ground water facilities development has provided irrigation facilities to only 3.23 lakh hectares through its 14,779 lift irrigation (LI) points. Due to lack of proper maintenance, rampant corruption and vested political interference, the OLIC is on the verge of bankruptcy and many of the LI points in the state have now become defunct.

Till 1951, Orissa had two major irrigation projects whose irrigation capacity was 1.76 lakh hectares. But today the state has 19 big and 51 medium irrigation projects most of which are completed. The total irrigation potential of all these projects is estimated at 39.49 lakh hectares against which 10.68 lakh hectares has been achieved till the end of eighth plan. However, in most of these projects, water does not reach the tail end of ayacut area due to lack of maintenance and other defects. Apart from this there are many minor irrigation projects which contribute to some extent.

Policy changes in the wake of Globalization

Since the very beginning World Bank is prescribing the theory that the misuse of water should be checked to overcome the future water crisis. It can be done by commodifying water. Even people are willing to pay for regular and quality water service. But the govts. are not willing to charge. To achieve this goal, the Govt.’s control over water resources should be withdrawn and be opened for private sector. The World Commission on Water, in its latest choreography called “Water Vision”, expresses that the single most immediate and important measure that we can recommend is the systematic adoption of full cost pricing for water service. After the beginning of globalization process in our country this prescription of World Bank is being implemented. World Bank and Govt. of India’s Joint Report shows the naked design for corporate control over water in our country. Starting from drinking water to irrigation, all aspects of water management are analyzed in the framework of market and in the language of profit. World Bank and Govt. of India in their publication “The Irrigation Sector” prescribed the following steps to hand over the irrigation sector to market forces.

Step 1: Establishment of Water Users’ Associations (WUA) at grass-root and unbundling of Irrigation Sector

Step 2: Shift the responsibility of collection of charges to these Associations.

Step 3: Encourage WUA through incentives for recovering operation and maintenance costs.

Step 4: Subsequently increase the water charges and create conditions for attracting private investments in water schemes.

Step 5: Finally hand over the operation to private operators.

Following the footsteps of Central Govt., Orissa Govt. has also being implementing its reform agenda under the guidance of World Bank. Instead of developing the existing irrigation facilities in an agricultural state like Orissa the State Govt. is moving towards squeezing and making costlier the present irrigation facilities. It has decided to withdraw all its responsibilities and to stop further investment in irrigation provision. On 26th Feb. 2001 Orissa Govt. has launched a World Bank funded Rs 4000 crores project called Biju Krushak Vikash Yojana in the name of increasing capacity and efficiency of irrigation in the state. Under this scheme the farmers of an irrigated area have to form WUA or Pani Panchayat to make the irrigation system more efficient and farmer friendly. The Govt. has the argument that, since in the existing set-up farmers are not getting proper irrigation facilities due to lack of proper maintenance and necessary funds, Pani Panchayat will able to overcome these problems and ensure proper supply of water.

Inside the sugar coated “Pani Panchayat”

The Pani Panchayat concept, first launched in 1972 by the Grama Gourava Pratisthan in Maharashtra, was to prevent the waste of scarce water resources through unjust and ecological destructive practices. The idea behind this project was that in a drought prone area no individual should be deprived of a rightful share of limited water resources on which life and livelihood depended. But today the Govt. and its advisor World Bank are using the same terminology for an entirely different purpose. The present day imperialists are habituated in using some highly value- loaded terms like globalization, liberalization, reform etc. to carry forward their sinister designs. The word “Pani Panchayat” has an inbuilt sense of justice and thus urges people’s participation. Taking this advantage the Govt. and the ruling class media are propagating it as a revolutionary step by creating illusion among people. But this sugar coated “Pani Panchayat” concept is the mask for World Bank prescribed WUA.

But people’s participation or ‘making efficient’, whatever the plea the Govt. is taking, in a globalized economy when the state is dismantling its welfare concept and shedding all its responsibility for welfare, the World Bank sponsored Pani Panchayat is nothing other than a step towards making profit from water. Besides Karnataka and AP, the Orissa Govt. has amended the Orissa Irrigation Act 1959 to withdraw all the subsidies given in this sector to the farming community and for opening the door for privatization. That is why the Govt. has declared that Pani Panchayat will be the WUA where the members have to pay the users’ charges towards getting irrigation facilities instead of getting water at a subsidized rate as earlier.

As per Orissa Govt.’s resolution No. Irr–1–WB(FOT)/38/2000/387 III dated 26.9.2000 all the Pani Panchayats or WUAs will be registered Associations under the Society Registration Act 1860. All the farmers under the irrigation area of a minor/sub-minor Canal or Lift irrigation point would be members of this Panchayat. It will be an elected three-tier institution and regarding its rights and duties it has to make an understanding with the Govt. Though the Govt. is saying much about the rights and duties of a Pani Panchayat, it is revealed from a detailed study that there is not much right for the members in the Pani Panchayat. Instead the Govt. has handed over all the duties and responsibilities regarding irrigation to Pani Panchayats keeping all the rights in its hand, making it a rightless and duty bound body.

Firstly the Govt. will have full control over the dams and their head regulators but would give the maintenance and repairing section of the Canal system to the Pani Panchayat. In Sec. 1(a) the Govt. has the exclusive right over how much water is to be discharged from the dam. Secondly if the WUA demands more water, the Govt. has the capacity to sanction or dismiss the demand. If the Govt. is not supplying the additional water asked by the WUA then it will not be responsible for the losses caused to the farmers of WUA. According to the understanding, the Govt. will be the sole Authority to decide the water cess from time to time and the Pani Panchayat will only implement it without questioning. Previously the Govt. was bearing all costs of maintenance, repairing and construction of irrigation structures. But in this scheme the Govt. will not take these responsibilities. Only it may arrange the necessary amount of loan from the lender agencies like NABARD, World Bank and DFID. So, now the farmers or the members of Pani Panchayat will have to pay the additional charge of maintenance and repairing along with the regular water cess fixed by the Govt. By this the Govt. is withdrawing its responsibility in providing water to farmers at very low cost and paving the way towards an irrigation system based on profit. Under the Pani Panchayat if the canals and distributing structures are not properly maintained the Govt. has the power to stop water supply in that area by giving a 15 day notice. This is a part of the Govt.’s motive to privatize and commercialize the farming sector. Under the dictation of World Bank, the Pani Panchayat scheme is created by the state Govt. to make profit. The enhanced water cess from time to time will attract private investment. After this phase the Govt. will hand over the head regulators of all the dams and irrigation structures to private parties. The Orissa Govt. has already implemented it by increasing the water cess regularly. Recently the water cess has increased to 250%. As per the World Bank’s prescription of unbundling the irrigation sector, the Govt. is planning to close down the OLIC and to down size the existing Irrigation employees through retrenchment and VRS. Actually, a major portion of Rs 4000 crores of this so-called mega-project will be spent for VRS. Baring few technical and managerial staff, almost all the necessary manpower for irrigation will be appointed by the Pani Panchayat on casual and contract basis under their own responsibility so that their salary or wage will also be paid by it.

So, the much-published Pani Panchayat scheme in Orissa is nothing but a step to privatize the Water Resources for making profit over people. In the first phase, on an experimental basis this scheme is being implemented in four irrigation projects of Orissa with the active involvement of some NGOs. Already the farmers in certain areas have raised protests against this dangerous move. The recent hike in water cess has already generated a severe resentment among the farmers and triggered a fire for an all-Orissa peasants’ movement.