Changing Policy Paradigm of Drinking Water Service Delivery: An Empirical Investigation in the context of Bihar, India

The present study critically analyses the policy framework of supply of drinking water in Bihar and attempts to explore scope of the new policy paradigm, which advocates for treating drinking water as economic good and supply it based on demand and cost recovery principle. The present paper uses the technique of Contingent Valuation Method to assess the Willingness to Pay for piped drinking water in rural Bihar and uses logistic regression analysis to identify factors influence willingness to pay for drinking water, critical to the new policy paradigm. The study found a large section of people are ready to share capital cost, monthly user charges and agreed to take part in management to ensure regular supply of improved drinking water. Education, income and community status, existence of contamination, perceived improved quality of piped water play significant role in determining willingness to pay for piped drinking water. The possibility of sharing project cost as well paying monthly charges and involving in managing the water supply project appeared to be an effective service delivery model in the context of rural Bihar. The findings indicates for adoption of more pragmatic approach and governance reform in supply of drinking water in rural areas, hitherto supplied by only public sector/enterprises.