India allocates $300m to mitigate floods

The Indian government approved on Wednesday the spending of nearly $300 million over two years to expand water bodies and build drains in seven cities, including Mumbai, Chennai, and Bengaluru, to mitigate flooding and conserve water.

Flooding, often resulting in fatalities, is a common occurrence during the monsoon season in Indian cities due to rapid urbanisation encroaching on city lakes and clogged drains.

In recent years, severe water shortages have also affected cities like Delhi and Bengaluru, as once-abundant water storage spaces have diminished.

Ratings agency Moody’s warned in June that India’s growing water stress could impact its economic growth, which is projected to reach 7.2 per cent during the current fiscal year. This stress could interrupt the country’s agricultural production and industrial operations, “resulting in inflation in food prices and declines in income for affected businesses and workers, especially farmers, while sparking social unrest,” Moody’s noted.

“This in turn can exacerbate volatility in India’s growth and undermine the economy’s ability to withstand shocks, given that more than 40% of the country’s workforce is employed in agriculture.” the rating agency said.

The federal government’s spending, the first flood control measure focused on water bodies, will also include early-warning systems, according to Krishna S. Vatsa, a member of the National Disaster Management Authority.

Out of the 25 billion rupees ($298 million) allocated, Mumbai, Chennai, and Kolkata will each receive 5 billion rupees, while Ahmedabad, Hyderabad, Bengaluru, and Pune will get 2.5 billion rupees each. Delhi was not allocated any funds as the cities were selected based on the frequency of floods and the resulting losses.

Vatsa cautioned that longer-term measures are also necessary, especially given the increasing intensity and duration of rainfall events in India. Mumbai, for example, experienced over 300 mm (11.8 inches) of rain in just six hours on July 8.

“Whenever a city receives 100 mm of rainfall, there is bound to be inundation,” Vatsa said. “You need a certain level of investment continuously which is supported by a whole lot of governance measures so that the problem could be reduced.”

Attribution: Reuters

Subediting: Y.Yasser