Strongly favouring a hike in power and water user charges, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday said this, along with addressing groundwater property rights, was imperative for sustainable development.
"Power and water services are hugely underpriced. Such and other policy distortions like subsidies on certain pesticides need to be addressed," he said at the launch of the Millennium Ecosystem Assessment report.
He pointed out that low water charges have resulted in excessive use of groundwater leading to depleting levels.
Ahluwalia, however, said merely increasing power and water tariffs would not solve the problem as ownership rights over groundwater also need to be considered.
Blaming economists and ecologists, he said they have failed to put enough pressure on the government regarding environmental degradation.
On the need for policy changes to safeguard environment, he said the command control approach has to be blended with market-friendly policies.