7.4.9.2 Other salient features The following principles need to be kept in mind while designing the regulatory framework, to ensure regulatory independence and to balance the interests of various stakeholders:
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Autonomy of the regulator.
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Independence through representatives from the private industry and academic or research institutions along with Judge of High Court or Member UPSC in the Selection Committee, setting up of a Regulatory Commission Fund, funded by grants/ loans by Govt. /levy of fees on the licensees.
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Accountability through independent review and assessment of the regulatory body against the specific objectives and an appeal mechanism in relation to the regulatory decisions.
Transparency and encouraging stakeholder involvement. Predictability through well defined criteria for decision making and review of standards. Flexibility by being open to alternative regulatory tools. Consultative through consultation with all stakeholders for encouraging commitment and a better understanding of the implications of the proposed action.
The Box 7.6 describes the Maharashtra Water Regulatory Commission, which has recently been established and is also the first regulator set-up in the water sector in India. Thus, it can be taken as a model for setting up a water regulator in Madhya Pradesh. It is important to mention here that a regulator is not feasible to be set-up at the city level. It is thus proposed that a detailed survey of the water sector in the State is undertaken before a decision on the type of regulator as well as the exact functions and features of a regulator are defined.
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