Assessing the Economic Impact of Jhelum Basin’s River WaterResources in Kashmir

Abstract

This study endeavors to ascertain the quantifiable value attributed to the utilization of river water for potable
purposes within the Jhelum basin of Kashmir. A meticulous investigation was conducted, centering on the
Kakapora Water Treatment Plant located in the Pulwama district, for the purpose of executing a
comprehensive cost-benefit analysis. Drawing insights from the Jammu and Kashmir census report of 2011,
alongside data provided by the Jammu & Kashmir Infrastructure Development Finance Corporation Limited
(JKIDFC) in 2019, it is established that a substantial 0.0563 million households rely on river water for
consumption. The aggregate volume of water consumed by the entirety of this populace translates to a
staggering 1.552 million gallons per day. Notably, the government's investment in this endeavor emerges as a
financially advantageous venture, as evidenced by a favorable benefit-cost ratio (BCR) of 1.014. In-depth
scrutiny of the costs involved revealed that annual variable expenses account for Rs.1.934 million (31.3%),
while fixed costs amount to Rs. 4.246 million (68.7%). Moreover, the precise evaluation of the cost and
associated value (price) per liter of filtered water culminates in figures of Rs.0.0499 and Rs.0.0504
respectively. Further magnifying the significance of these findings, the total water consumption by an
estimated 0.301 million individuals over a year equates to a voluminous 566.3 million gallons, carrying an
estimated valuation of Rs.108 million. By quantifying the pivotal role played by river water in the Jhelum basin,
this study contributes significantly to the existing body of scholarly literature. It marks a pioneering effort
within the region, holding the potential to inform and shape judicious policies aimed at optimizing the
management of this precious resource.