WATER SCENARIO IN INDIA – an Overview

Issues, Challenges & Way Forward

13 November 2019

The Portuguese and India Water & Sewage Industry

AICEP

Scenario of Water Resources in India Annual Precipitation including snowfall

4000 BCM

Water Resource potential available

1869 BCM

Potential that can be put to beneficial use

1137 BCM 690 BCM (Surface water) 447 BCM (Ground water)

Present water use 710 BCM of which 555 BCM is for irrigation (~80%)

Expected demand of water by 2025

843 BCM

Expected demand of water by 2050

1180 BCM

Annual waste water generated 140BCM

12 river basins with

population of 820 million

are already under water

stress or have scarcity (Source: CWC)

Current Scenario: Water Stress

Water availability <=1700 m3 per capita

Water Scarce

Water availability <=1000 m3 per capita

In 2019 • 17 States, 365 Districts

in water Stress • 190 under Flood

Moving towards

Water Infographics

Nowhere on Earth has

groundwater declined

more than in Northern

India; NASA found that large-scale

irrigation caused 108 cubic kilometers of

groundwater loss in Haryana, Punjab, Rajasthan,

and Delhi between 2002 and 2008.

The study’s lead, Matt Rodell, observed that “The

region has become dependent on irrigation to

maximize agricultural productivity. If measures

are not taken to ensure sustainable groundwater

usage, the consequences for the 114 million

residents of the region may include a collapse of

agricultural output and severe shortages of

potable water. "

Droughts in India- Apr 2016 • MAHARASHTRA- Marathwada, Vidarbha, Khandesh- No

relation in crop and rain

• MADHYA PRADESHP/UTTAR PRADESH- Bundelkhand- Soil Erosion and Destruction of Old water harvesting system and change in crop pattern

• CHATTISGARH-Sand Mining

• ANDHRA PRADESH- Dying rivers, Increasing Desertification

• TELENGANA- Destruction of Old water harvesting system

• RAJASTHAN- Overdraft of underground aquifers

• ODISHA- Distribution of water to industries ignoring farmers need

• TAMIL NADU- Encroachment over water bodies

• KARNATAKA- Rivers killed by big dams

• BIHAR- Flash floods/ Erosion

• HARYANA- Unequal distribution of water for irrigation

• GUJARAT- Over exploitation of Water

Challenges

Available Water

Agriculture

Industry

Maintaining Ecological

Flows

Municipal

(Drinking & Domestic

use)

• Distribution of water

between different users

• Maintaining minimum

ecological flows in

rivers

• Poor Quality Water

Competing

Water Demands

SEWAGE SCENARIO

POTENTIAL SEWAGE TREATMENT MARKET IN INDIA

Sewage Generation

Increase in Urban Population

Increase in Municipal & Industrial Activities

0

10000

20000

30000

40000

50000

60000

70000

80000

320

340

360

380

400

420

440

460

2011 2013 2015 2017

Sew

ag

e G

en

era

tio

n (

ML

D)

Urb

an

Po

pu

lati

on

(M

illio

ns

)

Urban Poulation (Millions) Sewage Generation (MLD)

Change in Sewage Treatment Capacity

• Government has launched a

number of programmes/

schemes for augmenting

sewage treatment and

collection infrastructure

Smart Cities

AMRUT

Namami Gange

Swachh Bharat

0

10000

20000

30000

40000

50000

60000

70000

80000

2009 jul-18(M

LD

)

Generation-Treatment capacity Gap- Sewage (MLD)

National Sewage Treatment Capacity (MLD)

~83% STPs

Operational

Challenges/Constraints

Poor Sewerage Infrastructure

• Obsolete & Inadequate collection network

• Insufficient Treatment Capacity

• Suboptimal capacity Utilization

ULBs’ Financial Models

• Pricing Inadequate to even cover O&M costs of STPs

• Lack of fixed revenue streams deterring Private participation

• One sided risk making it unattractive for private players.

Obsolete Datasets

• Latest updated Data not available with most ULBs. Data on;

Sewage generation

Collection efficiency

Treatment capacity

Treatment adequacy

Positives

• Given the constraints in ULBs, PPP models have tremendous opportunities

• Recently under Namami Gange Scheme, 2 STPs in Haridwar and Varanasi have been awarded under the new Hybrid Annuity Model

• Municipal Agencies & State Govts. are providing Incentives to encourage reuse/recycle of wastewater

• Municipal Corporations in Pune & Hyderabad have raised funds through Municipal Bonds

• Municipal Corporations are exploring new advanced technologies for treatment and reuse of municipal wastewater

• State Governments are developing Policies for Reuse of Municipal Wastewater- Gujarat, Haryana

• Projects for more than 11,000 MLD worth in excess of USD 2.4 Billion to be awarded by 2026 by Govt. of India

Recent Government Initiatives

4,362

8,014 9,778

US$ 1,250 million initial corpus earmarked for

smart technologies, green infrastructure etc

20,000 MW by 2022 Aimed to make India global leader in Solar power

Infrastructure an opportunity for both technology and investments

Trillion Dollar investments required over

next 7- 10 years ~ 50% to be private funded

(~ $ 500 bn)

National Mission on Clean Ganga (NMCG)

Smart Cities Initiatives National Solar Mission

US$ 10 bn for River rejuvenation + activities such as water and waste water management etc.

Growth of sewage treatment market in India

Water scarcity

Population growth and Urbanisation

Stringent government regulations

FACTORS contributing to growth

Rising demand for low pressure membrane technologies and salt management

Appropriate and affordable technologies

Treatment technologies with potential for better financial gains

Emerging Demands from Users

o Biodiesel from fats, oil, grease in

wastewater

o Electricity from sewage powered

fuel cells

Opportunities for implementation of

“Waste to Wealth” techniques to

increase financial gains

Market Size & Opportunities

• Projects in the pipeline (2018-19 – 2025-26) : 118 Nos.

• Combined investment : INR 370.5 Billion (US$ 5.15 B)

• Projects under bidding currently : INR 204.0 Billion (US$2.85 B)

• Projects to be taken up by 2025-26 : INR 166.5 Billion (US$2.32 B)

• Projected increase in treatment capacity : 11,550 MLD

Source: “Sewage Treatment Market in India 2018”- Report by India Infrastructure Research

Focus Sectors

Water and Waste Water

Water Supply Treatment

Ground Water Decontamination River / Lake Rejuvenation

Waste Water Treatment

Desalination

Water Treatment

Water Purification

• Water demand expected to rise by 50% from 2010 to

2030

• Public spending on Water Production : USD 2 bn per

annum

• Contamination a serious challenge

Lake Cleaning

• Govt. of India has launched a National Lake Conservation

Program with an annual budget of USD 200 Mn.

The Opportunity Landscape

Waste water Management

• Total waste water generated: 75,000 MLD

• Total waste water treated in Indian : 26,000 MLD

• Untreated waste water: 49,000 MLD

• Key Challenges

Reliance on conventional technologies with chemical inputs

High Installation and operating costs

Hazardous sludge waste generation and safe disposal

• Potential

Market at a very nascent stage in India – huge potential for growth

Public spending on Liquid Sewage treatment in India – approx. USD

2 bn per annum over the next 5 years

Thank You