Privatization - Can It improve Transport /Power /Water Supply ?
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Written By Naveen - 27 May, 2008
Infrastructure
Bangalore
CDP
Should BMTC, BWSSB & KPTC be privatizied ? Will such a move improve services & benefit citizens in the years ahead ? When will it be a good time to think of privatizing these entities ? Are we happy with their services as they are ? If not, are there ways to improve them without privatization ? Are there successful examples of such privatization ?
Since liberalization, citizens have benefitted from the successful privatization of airlines, telecom, banking & insurance services. However, all these services are aimed generally at the better off citizens who can take on a price hike or two in their stride en-route to a path of privatization & wait until severe competition drives prices down.
These services are not generally aimed at the lower middle class or the poor - the class that uses PDS, govt run schools & uses health care from primary health centres --- economically weak sections, numbering some 600 million or more in the country, as a whole.
This same class also uses buses, trains, water & power along with other classes - this may explain why they remain under wraps by the netas as votes from these sections are 'gettable' with promises of free /subsidized train fares, subsidized bus fares for the working class, subsidized /free power, even water thro' community water taps, etc.
This is not for the want of trying elsewhere in the country :
Privatization of power & it's distribution has made some progress. In Orissa, attempts were made to privatize the power sector but results have not been encouraging. In mumbai & delhi, they have been quite successful, though.
Privatization of buses for intra-city transport elsewhere is still primitive & almost all operators are of very low quality - this still has a long way to go before it attracts the quality players, if such a turnaround can be orchestrated. Another factor is that the world over, generally public transport is more or less operated as a "not for profit" sector as returns are indirect by way of creation of employment, taxes, competitiveness of the city, image, etc. Thus, assisting quick & cost efficient movement for the general public, particularly the poorer sections becomes vital & important, irrespective of the poor direct returns from the service, or even subsidizing it in consideration for the overall benefit it provides. Indore, with a new PPP model has started working very well & is perhaps an exception to this.
Privatization of distribution of water has not seen any move yet.
I am of the opinion that as long as we carry the baggage of these large EWS sections, progress on privatization efforts in the areas of Transport, Power & Water will remain slow & evolve only in proportion to the decline in their numbers. Quick step efforts at privatization will meet with stiff resistance from these EWS sections & politicians will roll back any privatization initiatives for fear of losing elections as EWS votes can make or break a party's majority.
What are your views ?
sri awesome. succinct and and yet complete.
there some issues where artificially controlling demand is bad and some where satiating demand is bad.
there is no one solution that fits all.
If anyone knows, does BIA have rain water harvesting implemented ?
With the big terminal building a lot of rain water can be harvested.
http://clean-and-green.blogspot.com
i am not convinced either way, but some qs i have.
is cell fone = public transport = banking = water supply = services = power and so on?
cell fone distibuted use. one person to another person.
transport distributed use. one person one place to another.
what is the impact of flooding market with cell fones?
what is the impact of flooding city with buses?
similarly water. is it possible, when supply itself is seriously controversial and limited? oth, will private industry innovate or will it subvert/exploit?
eg. bangalore/mangalore train. eg. enron.
a side effect of sarkari service levels is virtue of control and conservation. though one hopes that atleast minimum levels of service they provide.
awesome posts kari.
respect,
tarlaihda
thanks karihaida, southern parts too.
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