Question

Given below are two statements :
Statement (I) : Pricing of water on volumetric basis helps to incentivize water conservation, improve water use efficiencies and restrict overuse of water.
Statement (II) : Pricing water on volumetric water supply basis requires huge investments in irrigation water supply infrastructure including water measurement structures, development of operational plans and revenue collection procedures.
In light of the above statements, choose the most appropriate answer from the options given below.

• A. Both Statement (I) and Statement (II) are false.
• B. Statement (I) is true but Statement (II) is false.
• C. Both Statement (I) and Statement (II) are true.
• D. Statement (I) is false but Statement (II) is true.

Hint:

While volumetric pricing is the most equitable and water-efficient model, its high infrastructure setup and monitoring costs are why many developing nations still rely on simpler flat-rate area pricing.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Irrigation water pricing models can be flat-rate (based on land area or crop type) or volumetric (based on the actual volume of water consumed).
Detailed Explanation:
Let us evaluate both statements:
- Statement (I) analysis: Charging farmers based on the actual volume of water used penalizes wasteful practices and encourages them to adopt water-saving technologies (like drip or sprinkler systems). This improves water-use efficiency and restricts overuse. Thus, Statement (I) is true.
- Statement (II) analysis: Implementing a volumetric pricing system requires installing water meters, constructing measuring flumes, upgrading canal gates, and maintaining a robust billing database. This requires significant capital investment in irrigation infrastructure and administrative systems. Thus, Statement (II) is true.

Step 2: Final Answer:
Since both Statement (I) and Statement (II) are true, the correct choice is Option (C).