Professional Documents
Culture Documents
Synopsis of Project
Acknowledgment
Abstract
Content Table
Executive Summary
Section 1
Overview of Ground Water
Key Definition
Terms
Explanation
Ground
Water
Aquifer
Groundwa
ter body
Groundwater and surface water are inextricably related through the water
cycle. Extracting groundwater can impact surface water resources and vice
versa.
3. Mining
Mining includes coal, oil, gas, metal, minerals, quarries and exploration
activities. Groundwater is an important resource for many mining
activities. In Indias arid zones, many large mining projects and much of
the petroleum production industry are completely dependent on
groundwater. The mining industry uses water for the following operational
activities: Ore and waste transportation in slurries and suspension,
Separation of minerals through chemical processes, Physical separation of
material such as in centrifugal separation, Dust suppression during
mineral processing and around roads and conveyors
Section 2
Types and drivers of economic value
Types of value
The economic value of groundwater is derived from various attributes as
shown in the figure below. These can be divided into three main categories
being extractive, non-extractive and option values. For the purposes our
project the scope of the economic value is limited to extractive use value only.
Extractive
Value
Irrigation, Minning ,
Household,
manufacturing etc
Option
Value
Kept for future use and
furture generations
Definitions:
1. Extractive values
NonExtractive
Value
Recretional value,
Environmental support
and quality managment
Extractive value provides the value associated from the actual, intended
or potential use of the extracted groundwater by the various sectors of
the economy. It therefore includes the value relating to actual
consumption of groundwater as well as the value given to end-products
formed by groundwater use. The extractive value of groundwater is
context based.
2. Non-Extractive values
Groundwater also provides important non-extractive values. It
supports the natural water flows that are vital for ecosystems and
wetlands, as well as providing base flow into surface water resources
and supporting recreational activities like natural scenery etc., also it
prevent land subsidence and act as a barrier against seawater intrusion
into aquifers.
3. Option values
Option values relates to the value produced from preserving the
groundwater future benefit, or for future generations. For example
groundwater can be stored while surface water is use acting as a
security in case of depletion of surface water. This can be applied
particularly for farmers seeking to minimize the risk of droughts. This is
the insurance value that exists even in years where water is not used.
Drivers of value
There are four key drivers of the value of groundwater being scarcity, cost of
alternative water sources, quality and reliability.
1. Scarcity
The price for water generally reflects the physical costs to supply the
water (such as piping infrastructure and treatment plants) and not the
actual value of the water itself. These prices are often independent as
they reflect the efficient costs of supplying water.. When water is scarce,
people will tend to value it more highly. In areas where groundwater
serves as a close substitute for surface water, the value users attribute
to groundwater will tend to be higher when surface water is scarce.
Factors that will drive scarcity include:
i.
ii.
Section 3
Macro-economic analysis of Groundwater Value for Indian Irrigated Agriculture
Introduction
Groundwater has come to be the major contributor for irrigated agriculture in
India. India uses 200 km 3 approx. of groundwater annually because it has
come to play a unique and increasingly critical role in supporting dynamic
smallholder peasant agriculture.
The importance of groundwater to the agricultural economies of India can
easily be seen from the fact that some 60% of the irrigated areas in India are
served by groundwater wells.
Throughout India, the history of protective well irrigation goes back to the
millennia. However, intensive groundwater use on the scale we see today has
grown to current shear number in last 50 years. In India, the total number of
mechanized wells and tube wells rose from less than 1 million in 1960 to an
estimated 19 million in 2000.
In the following pages some figures as well as data tables are shown to
innumerate visually and statistically the growth of groundwater use for
irrigation purpose in India. This data from figures and tables will be
subsequently be used for calculating the extractive value of groundwater in
the a aforementioned context.
_______________________
Quantity
21-23
2527
Average hours of
operation/well/year
360
189204
* Shah, T.; Singh, O. P.; Mukherji, A. 2004b. Groundwater irrigation and South
Asian agriculture: Empirical analyses from a large-scale survey of India,
Pakistan, Nepal Terai and Bangladesh
*
*Data from Indian brand equity foundation(http://www.ibef.org/)
The proxy market price is revealed not through the market price paid for the
resource itself, but through other costs to access the resource. It includes the
costs that groundwater users are willing to pay to access groundwater
resources, such as drilling, pumping etc.
For the scope of our analysis we are considering the pumping cost of
groundwater used for irrigation purpose
Supplying
this energy
the regions
energy X g X ]
The
total energy
=[ GWcosts
X <water
level depth>
industry US$3.78
billion.
<efficiency
of pump>
Inserting value we get 68.6 billion kWh equivalent per year.
The cost of electricity for pumping is US$0.05 (Indian Rs 2.5) per kWh,
GW
GW + SW
>