Financing for Rain Water Harvesting in Kerala

Abstract

Compared to other Indian States, Kerala is considered as a heaven of water, having 3070 MM Average Annual Water Fall, presence of around 44 rivers, various lagoons, lakes, ponds etc. Regardless, Kerala is facing seasonal and spatial drinking water scarcity owing to its inclined geography, unequal distribution of rainfall and poor water management strategies. Around 70.0 percent of Kerala’s total rainfall is the June to September time and 20.0 per cent in October–November period. In addition, districts sharing open boarder with Tamil Nadu are receiving comparatively lesser rainfall than other districts. There is also significant variation in rainfalls in hilly areas, middle land and coastal areas. Lower degree of ground water conversion is happening asthe rain water flows out to the sea with 2-3 hours after a rain. It is observed, such a way Kerala islosing 60.0 per cent of water received from annual rainfall. There are some rain water harvesting initiatives from Government of Kerala, still it is evident that, people are not coming forward tospend money in water preservation infrastructure mainly due to the lack of institutional financial support. Financial institutions including banks are also not interested to lend money for the same as they feel it as a no return investment. Unlike other states, micro financing institutions are not actively involved in water credit in Kerala. Relevant lending policies especially in the form of rural credit from banks, non banking finance companies including micro financing institutions to support the village based water preservation initiatives especially for rain water preservation, storage and distribution are need of the hour. SME Loan products for rain water based industries at rural level including Drinking Water Bottling Plants, Carbonated Water Bottling Plants, Ice Plants etc, promoted by rural communities especially Women Self Help Groups, can be ensured and which will fund the rain water harvesting infrastructure including water treatment facilities, storage tanks, and even distribution vehicles. This paper specifically seeks a conceptualized solution to bridge the financing gap in rain water harvesting in Kerala, by linking the same with a community based rural livelihood alternative.