Domestic private sector participation : India

In urban areas, piped water supply and sanitation are predominantly provided by urban local bodies (municipalities) in charge of operations and maintenance (O and M). In rural areas, there are about 100,000 water supply systems and, in some states, responsibility for service provision is being transferred from state water boards and district governments to Panchayati Raj institutions at block or village level. On the sanitation side, while domestic private sector participation (DPSP) is promoted by the national government, little attention is given to cost recovery and business plan sustainability and there are lack of incentives and enforcement for households and industries to connect to sewage systems. Water and sanitation program - South Asia (WSP-SA) has helped prepare the groundwork for PSP in water supply and sanitation in India by advocating for performance benchmarking, institutional reform and accountability, and promoting access to market financing for service providers. It is also helping develop guidelines for the Government of India (GoI) on engagement with the private sector and documenting models of PSP engagement within the country and internationally.