Willingness to pay for improved water supply in rural areas of tamilnadu: an econometric analysis using tobit model

Abstract

Provision of high quality and sustainable drinking water services for all the citizens, particularly the rural poor, is critical to enhance the economic productivity of any nation. Supply of safe and quality drinking water to the rural community remains a significant issue in the governance in India. It has been estimated that to provide safe drinking water to all rural habitations in the country with minimum satisfactory level of service would require a further investment of about Rs.450 billion. In view of increasing constraints, it would be a difficult task for the Government alone to mobilize such huge investment single handedly. Therefore, a productive and pro-active involvement of user community and other stakeholders in resource mobilization and community participation in the implementation as well as the operation and maintenance of the system has become imperative. To translate the above strategy into practice, it requires massive efforts to transform the prevailing mindset of the major partners – the users, community, local Government, Government agencies, NGO’s etc. When users are involved in operation and maintenance of the systems, they are likely to be willing to pay forit.