There’s a new twist in the tussle to control water by the World Bank, MNCs and profit sharks in Delhi. Is the Sheila Dikshit government washing its hands of the matter? Mihir Srivastava reports

Daily Grind: It’s a mad rush for people to get their share of water

A controversial aspect is the appointment of Pavan Ahluwalia, son of Montek Singh hluwalia, as project consultant

The controversy sparked off by the World Bank (WB) is far from over, despite Chief Minister Sheila Dikshit agreeing to ‘stay’ the contentious ‘privatisation of water’ project in Delhi and allowing full transparency as per the right to information. After the power crisis, with residents up in arms against the government and Reliance for hiking tariff amid continuous breakdowns, no one’s really ready to follow the sinking drinking water doctrine.

It all started with the WB bending established rules to ensure that PricewaterhouseCoopers, an mnc, gets the contract for making the blue-print for reforming the Delhi Jal Board (DJB). Later, in an unprecedented move, the Delhi government referred the matter to the Planning Commission for, as Sheila Dikshit puts it, “advice and consultation”. This followed a detailed presentation by DJB ceo Rakesh Mohan to the commission in the presence of the Deputy Chairman, Planning Commission, Montek Singh Ahluwalia and Dikshit. Says former Member-Secretary, Planning Commission, NC Saksena, “I cannot recall a single case where the state government has referred a project like this to the Planning Commission for advice. Generally, the state government is considered competent to carry out its own projects. The project is discussed only if it is to be included as part of the plan.”

The water project is not of this category. In fact, the Department of Economic Affairs, ministry of finance, initiated this as a World Bank aided project in early 1998. A team of the Bank subsequently visited Delhi in July 1998 to work out the modalities. At that time, Ahluwalia was secretary in the ministry of finance.

Mohan does not see anything unusual or amiss. “Plans are sent to the Planning Commission for advice. Besides, this project involves such a big investment,” he says. Why was it referred all of a sudden now? Dikshit insists, “The Delhi government has the right to refer the matter to the commission.” The Planning Commission is not an expert body on water. But Mohan justifies the move: “They might seek the services of consultants to advice us.”

The other controversy revolves around the appointment of Pavan Ahluwalia, son of Montek Singh Ahluwalia, as a consultant in the project. When Mohan was asked about him, he said, “I am not supposed to know what the sons and daughters of people are doing. I am not aware of any consultant by this name.” The list of consultants, obtained by Arvind Kejriwal of Delhi-based ngo Parivartan, also does not list Pavan Ahluwalia.

But when Dikshit was asked the same question she was categorical. “Pavan Ahluwalia is a bright young man who was assisting us in this project, but what is wrong about it?” she said. During the phase he was working as a consultant for this World Bank aided project, his father held the post of Director, Independent Evaluation Office, International Monetary Fund, Washington D.C.

“There is a conflict of interests here. First, Montek Singh is a former World Bank man and second, his son was also part of the project,” says Supreme Court lawyer Prashant Bhushan. “People with such backgrounds should not be allowed to hold policy making positions,” he adds. But Dikshit rejects these concerns as baseless. “Montek Singh Ahluwalia and Pavan Ahluwalia are two different individuals doing different things,” she said. Pavan Ahluwalia was consultant for institutional development from September 2002 to August 2003. (See interview below)

“The World Bank is known for dictating terms to donor countries. Now this seems to be another way of doing it by pushing their man for further interference in the project. The Delhi government owes an explanation to the people,” says Abani Roy, RSP leader and mp, Rajya Sabha.