WATER has become a commodity. Water has also become a source of power. In South Africa, control over water resources is a more powerful control of dominance than the control over land. Water is linked to poverty alleviation. MNCs have suddenly become concerned of providing potable water to millions of people. People of the countries which have already privatized water are taking to streets as the water charges are unaffordable. It is unaffordable even to the people in richest countries like America.

Water is one of the major priorities of the World Bank and the WTO. The National Water Policy 2002 is an updated version of the one adopted in 1987. The government considers interlinking of rivers and privatization to be the magic wand for solving water crisis facing the country. All tall talks of 'participatory management1 involving local people and NGOs are meant only to ensure a smooth passage to privatization of water resources.

S M Krishna publicly announced in the midst of Cauvery crisis that people should pay for what they use and suggested interlinking of rivers. The central government unmindful of cost-benefit analysis, feasibility of such a mammoth project, the link between economic growth and the water, etc., has instituted a task force to complete the project of interlinking by 2010. Neither the problems of human displacement and ecological disorder nor the issues of benefits and alternatives were addressed. The country’s water resources are being divided between Indian corporate houses and MNCs without taking hydrological cycles into account.

We already have the experience of abandoned privatisation of river Shivnath in Chattisgarh. People were even denied drinking water while private companies were provided assured water supply. There are also international experiences of Russia and America. Russia which diverted rivers now say that it is an ecological and economic blunder as the diversions have gone dry now. America, the pioneer of larger dams has already decommissioned many of them. Around 500 dams in the USA and elsewhere have already been removed and the movement towards river restoration is accelerating. In Cochabamba, Bolivia, the water company was privatised in 1999 to a company Bechtel, under a contract which guaranteed a return on capital of 16%. In December water bills went up by 35% on average and some by twice that. Not only were water prices increased, local residents were even forced to buy permits to gather rain water on their own property. Water became more expensive than food. The people went on protests after protests. The Bolivian government had to declare martial law, and a teenage boy was shot dead. Public anger, culminating in the famous protests at Cochabamba, forced the government to backtrack and revoke the privatisation law. The following week, the private water company was sacked and then the government as well. But, Bechtel is now suing the government for $12 million compensation for lost profits.

Already some 30 cities in the states of Maharashtra, Karnataka, Andhra Pradesh and Rajasthan are bidding their respective municipal water supply to handful of powerful multinational corporations specialising in water. Tiruppur town in Tamil Nadu, one of the important centres for hosiery industry in South Asia and Hubli-Dharwad in Karnataka have moved closer to privatisation of their water utilities. Delhi's water supply will soon be in the hands of Vivendi, one of the world's two leading water companies from France. Monsanto is also planning to penetrate the Indian market for safe water by establishing a joint venture with Eureka Forbes / TATA. By the year 2025, the supply of water in India is expected to reach 700 cubic km per year while the demand is expected to rise to 1050 units. Control over this scarce and vital resource is assured loot for the private corporate houses and MNCs.