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By:

Rajendra Pandharpure

15 April 2025 at 7:55:54 pm

Pune’s drought could dry up business

Water rationing threatens to hit the city’s wedding industry, construction sector, retail trade and livelihoods. Pune : Pune is beginning to feel the economic sting of drought. A 10 percent cut in the city’s water supply has already been implemented, and the municipal administration has indicated that the reduction could rise to 20 percent or more over the next two to three months. What appears at first to be a water-management crisis could soon become a wider economic problem, affecting...

Pune’s drought could dry up business

Water rationing threatens to hit the city’s wedding industry, construction sector, retail trade and livelihoods. Pune : Pune is beginning to feel the economic sting of drought. A 10 percent cut in the city’s water supply has already been implemented, and the municipal administration has indicated that the reduction could rise to 20 percent or more over the next two to three months. What appears at first to be a water-management crisis could soon become a wider economic problem, affecting businesses, construction activity, employment and household budgets. The Pune Municipal Corporation has begun shutting off the water supply every Thursday. Swimming pools and vehicle-washing centres have been closed, while the use of water for construction has been prohibited. The state government has directed the civic administration to ensure that the reserves in the Khadakwasla dam chain, which supplies Pune, last until August 2027. The challenge could become more acute in the months ahead. Meteorological experts have forecast a milder winter and significantly higher temperatures this year. If these predictions hold true, increased evaporation could place further pressure on the city's water reserves, potentially necessitating stricter rationing. For residents accustomed to a relatively abundant water supply, cuts of 20 percent or more would demand a substantial adjustment in daily life. Intense Pressure The economic consequences are beginning to emerge. The closure of vehicle-washing centres has deprived young people employed in low-skilled jobs of their livelihoods. Swimming-pool closures have similarly affected security guards and lifeguards. These may appear to be small, isolated losses, but they expose a larger problem: when water-intensive businesses are forced to shut down, the burden falls disproportionately on workers with few financial reserves and limited employment alternatives. The impact could spread to Pune’s lucrative wedding industry. The wedding season traditionally gathers momentum after Tulsi Vivah in the month of Kartik, generating business worth more than Rs. 200-250 crore. Pune has long attracted affluent families from outside the city who prefer its venues and facilities for wedding celebrations, partly because of its historically reliable water supply. Persistent restrictions could undermine that advantage. Wedding venues, caterers, hotels and other service providers depend on a dependable water supply to operate. If rationing becomes more severe, organisers may reconsider their choice of venue, while businesses could face higher operating costs and disruptions. An industry that generates substantial seasonal revenue also supports a network of workers and small enterprises, making the potential economic fallout wider than the immediate loss of bookings. Rural-Urban Connection Pune’s commercial fortunes are also linked to the health of the rural economy. A good agricultural harvest typically improves rural incomes, supporting spending on goods and services in urban markets. When farm earnings weaken, that spending tends to contract, affecting traders, retailers and other businesses. If rural incomes remain subdued, the city’s commercial sector could face an additional headwind at a time when water scarcity is already threatening business activity. The interaction between agricultural distress and urban water shortages could therefore deepen the economic slowdown. Construction presents another major vulnerability. Like many large cities, Pune depends heavily on real estate and infrastructure development to sustain economic activity and employment. Construction projects generate demand across a broad network of industries, from building-material suppliers and transport operators to contractors and daily-wage workers. A prolonged restriction on construction-related water use could delay projects, raise costs and disrupt work schedules. If projects stall, the effects will extend beyond developers to workers, suppliers and businesses that depend on the real estate sector. Rising Inflation For ordinary citizens, the prospect of tighter water rationing comes amid an already difficult cost-of-living situation. Food and restaurant prices have risen sharply. A cup of tea now costs more than Rs. 30, while a serving of idli-sambar can exceed Rs. 90. Even street food, traditionally an affordable option for working people, has become increasingly expensive. These prices illustrate the pressure on household budgets, particularly those of workers whose incomes have not kept pace with rising costs. If water shortages push up operating expenses for restaurants, caterers and other businesses, consumers could face further increases. The extent of any additional price rise will depend on how severe and prolonged the restrictions become. The working class is particularly exposed. Workers in vehicle-washing centres, swimming pools, construction and allied services may lose income precisely when everyday necessities are becoming more expensive. Unlike larger businesses, many such workers have little capacity to absorb a prolonged interruption in earnings. Pune’s immediate challenge is to conserve enough water to carry the city through the coming months. Yet the implications of the drought extend well beyond household taps and civic supply schedules. Trade, real estate, hospitality and seasonal businesses all depend, directly or indirectly, on the availability of water. The two sectors facing particular uncertainty are trade and real estate. The former could suffer from weaker consumer spending and disruptions to commercial activity; the latter could be affected by restrictions on construction and the risk of project delays. The consequences would be felt across employment and the wider urban economy. Pune’s residents and businesses have not had to contend with water cuts of 20 percent or more on a sustained basis. Adapting to such restrictions will be difficult, especially if temperatures rise and the drought persists.

Paper Towers

Correspondent
Sep 7
2 min read

The collapse of the Delhi hostel which has left six people dead and several more injured brings into sharp relief the dangerous disconnect between what is sanctioned and what is actually built in Indian cities.


The structure was reportedly sanctioned only up to ground-plus-one, yet had grown to five storeys and was being used as a densely occupied student hostel.


While the investigation will establish whether the basement alterations, weakened pillars, waterlogging or some other structural failure caused the building to give way, the circumstances already raise a more uncomfortable question: how does a building apparently approved for two floors become a five-storey hostel without the system noticing?


Delhi’s student neighbourhoods have developed a voracious market for cheap accommodation, and where demand rises faster than regulated housing, buildings acquire floors, rooms and tenants with remarkable speed. A residential property becomes a paying guest facility; a basement becomes usable space; another floor appears; more beds are squeezed in. The paperwork, if it exists at all, struggles to keep pace with the construction.


There is no reason to assume that this is uniquely Delhi’s problem. Pune’s student districts, Bengaluru’s rental corridors, Mumbai’s crowded suburbs and other education and employment hubs face the same pressures. Wherever land is scarce, rents are high and demand for accommodation is relentless, the temptation to build beyond what was sanctioned is immense.


The danger is obvious. A building designed for one purpose and a particular structural load cannot indefinitely be treated as a piece of elastic real estate. Adding floors, altering columns, excavating beneath an existing structure or cramming dozens of occupants into a building designed for far fewer people is not renovation. It is gambling with lives.


Yet India’s municipal systems too often seem to discover illegal construction only after something has collapsed. The response is then predictable: an FIR, inspections, sealing drives and promises that officials found negligent will be punished. Delhi has already ordered inspections of nearby paying guest accommodations and buildings with fifth floors. Such action is welcome. It is also painfully late.


The real test is not how efficiently the authorities clear the rubble. It is whether they can prevent the next building from becoming rubble.


The country needs more than inspection drives. It needs municipal bodies capable of knowing what is being built in their jurisdictions, enforcing sanctioned plans before violations become permanent and making officials answerable when obvious breaches are ignored.


A city’s housing shortage cannot be solved by allowing unsafe buildings to multiply. Nor can affordable accommodation be secured by making students the unwitting occupants of structural experiments.


Satya Niketan has exposed a dangerous gap between the buildings cities need and the buildings their regulations can safely accommodate. If that gap is not closed, the next collapse may simply have a different pin code.

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