Water scarcity is an escalating challenge, particularly in rapidly urbanizing and industrializing regions like India. As demand for water continues to surge, the importance of wastewater treatment has become increasingly evident. This article explores the critical role of wastewater treatment in mitigating water scarcity, highlighting the technological advancements, policy initiatives, and market opportunities that are shaping
In March this year, Bangalore, often referred to as the 'Silicon Valley of India,' faced an unprecedented water crisis. According to reports, half of the city's public borewells ran dry. A scorching February and March, coupled with poor rainfall, exacerbated the situation. A few years ago, Chennai and Simla also grappled with severe water crises. Although conditions have somewhat improved since then, the threat of a water crisis still looms large, hanging over these cities like a Damocles' sword. India’s population is increasing exponentially each year and freshwater is depleting at a rapid pace. Seventy percent of the earth's surface is covered by water, only 2.5 percent of it is freshwater, suitable for drinking. The rest is saline and found in oceans. Throughout history, holy texts from various civilizations have emphasized water's importance, often referring to it as the elixir of life. India is home to 18 percent of the world's population but has only 4 percent of its water resources. By 2031, the average per capita water availability is projected to be just 1,367 cubic meters. Various reports indicate that out of the country's 1.4 billion people, 35 million lack access to safe water, and 678 million lack access to safe sanitation facilities. Extreme water stress, contaminated surface water, and a lack of piped water supply are major challenges currently facing the country. Additionally, the effects of climate change, such as droughts and rising sea levels, further threaten access to safe water and sanitation for families across India.
Yale University's 2022 Unsafe Drinking Water Index ranked India 141st out of 180 countries, highlighting the severity of the issue. Nearly 70 percent of India's water is contaminated. By 2030, India's water demand is expected to be twice the available supply, as emphasized in the Interconnected Disaster Risks Report from October 2023. This potential water scarcity could affect millions of people and have a detrimental impact on the country's GDP. According to a report by Central Ground Water Board as many as 256 of 700 districts in India have reported ‘critical’ or ‘over-exploited’ groundwater levels. Recently, Moody’s Ratings has cautioned that severe water shortages in India could undermine the country’s sovereign credit strength, warning that the crisis could spark social unrest if disruptions occur in the agricultural and industrial sectors. In the past, great importance was placed on conserving water for future generations. One of the earliest sites of the Indus Valley Civilization, Dholavira in Gujarat, is well-known for its sophisticated water storage reservoirs, including lakes designed to collect surface runoff during the rainy season.
Addressing water challenges
The government is making every effort to educate the public on the importance of water conservation. To address the severe water scarcity in the country, the government launched the Jal Jeevan Mission – ‘Har Ghar Jal’ initiative in 2019, a time-bound mission aimed at improving water availability, including groundwater conditions, in the water-stressed blocks of 256 districts across India. Demonstrating its commitment to resolving the water crisis, the government also established the Ministry of Jal Shakti. In 2021, the Jal Shakti Abhiyan: Catch the Rain campaign was launched, which carried out various rainwater conservation activities in all districts of the country. To improve availability of water in water scarcity region, the government formulated the National Perspective Plan (NPP) for Water Resources Development which envisages transfer of water from water surplus basins to water deficit basins. To ensure that every household has access to a tap connection with assured supply of water, the government launched Atal Mission for Rejuvenation and Urban Transformation (AMRUT) in select 500 cities and towns across the country with focus on development of basic urban infrastructure, the Ministry of Housing & Urban Affairs has formulated guidelines for the States to adopt measures suitable to local conditions to promote recharge of ground water. Adequate focus has been given on the requirement of rainwater harvesting and water conservation measures. The Central Ground Water Board (CGWB), in consultation with States and Union Territories (UTs), has developed a Master Plan that envisages the construction of approximately 1.42 crore rainwater harvesting and artificial recharge structures across the country to harness 185 billion cubic metres (BCM) of monsoon rainfall.
The solution
The outlook for clean water is becoming increasingly dire in the days ahead. As climate change looms, rainfall is becoming more scarce and unpredictable. This, coupled with hotter summers, is accelerating the depletion of groundwater at an alarming rate. But all is not lost; there is a glimmer of hope. And that is treating wastewater. Be it sewage or industrial wastewater. Countries like Israel and Singapore are l treating and reusing 90 percent of their wastewater. Israel, in particular, has developed the most advanced wastewater management system, enabling the country to endure severe droughts and water scarcity. Today, Israel stands at the forefront of water technology, leveraging its expertise to not only secure its own water needs but also to monetize its innovations on a global scale.
India still has significant progress to make. The government has enacted strict laws to prevent industrial wastewater from being discharged into rivers. As per the Provisions of Environment (Protection) Act, 1986 and Water (Prevention & Control of Pollution), Act 1974, industrial units and local bodies are required to install effluent treatment plants (ETPs)/ common effluent treatment plants (CETPs) and Sewage treatment plants (STPs) respectively and treat their effluents/sewage to comply with stipulated environmental standards before discharging into river and water bodies. Accordingly, CPCB, State Pollution Control Boards/Pollution Control Committees monitor industries with respect to effluent discharge standards and take punitive action for non-compliance under provisions of these Acts. The government has promulgated the national framework for safe reuse of treated wastewater. The framework gives guidelines for the formulation of State reuse policy and is intended to build appropriate market and economic models for the reuse of treated wastewater. In 2021, Indian cities generated more than 72,000 million litres of wastewater daily, but only 28 percent was treated. The rest was released into natural water bodies, leading to pollution in rivers and lakes during the non-monsoon months. A study conducted by the Council on Energy, Environment, and Water assessed the performance of urban local bodies in wastewater treatment. The study found that Surat and Bangalore have dedicated action plans for treating wastewater, while Haryana and Karnataka emerged as the top two states in India taking significant steps in wastewater treatment.
Public private partnership comes to the fore
The Centre has allocated Rs. 62,935.90 crore for sewerage and septage projects under the AMRUT 2.0 (Atal Mission for Rejuvenation and Urban Transformation) scheme. The projects will establish a vast 29,105 km sewerage network and enhance sewage treatment capacity by 5,791.94 million litres per day (MLD). To help alleviate the water crisis, the Bangalore Apartment Federation (BAF) has entered into a Memorandum of Understanding (MoU) with the Bangalore Water Supply and Sewerage Board (BWSSB) to sell treated water from apartment complexes and gated communities for commercial use. The Surat Municipal Corporation has entered into memorandums of understanding (MoUs) with three industrial entities located outside the city limits to supply treated wastewater and generate revenue. The project, which is being developed at a cost of Rs 250 crore, will have approximately 50 percent of its capital expenditure covered by the state government. The Vadodara Municipal Corporation (VMC) has raised Rs 100 crore through its Certified Green Municipal Bond for Sustainable Water Infrastructure. The bond proceeds would be utilised for three projects, including a 100 million litre per day (MLD) sewage treatment plant (STP) at Sherkhi. The National Mission for Clean Ganga (NMCG), Uttar Pradesh Jal Nigam, and Vishvaraj Environment Private Limited (VEPL) entered into a tripartite Concession Agreement for the development of Sewage Treatment Plants (STPs) in Agra, under a hybrid annuity model, at a total cost of Rs. 582.84 crores. The Punjab government is setting up 63 new sewage treatment plants (STPs) across the state with the capacity of treating wastewater up to 568 million litres per day (MLD). The Telangana government has committed to constructing 39 Sewage Treatment Plants (STPs) as part of the Musi Riverfront Development Project (MRDP). The Energy and Resources Institute (TERI) has signed a Technology and Trademark License Agreement (TTLA) with Ion Exchange India to commercialize TERI’s patented wastewater treatment technology, TADOX®, for industrial applications. Welspun Enterprises has secured an order to design, build and operate a 2,000 million litres per day water treatment plant at Bhandup Complex in Mumbai from the Brihanmumbai Municipal Corporation.
Hurdles to overcome
According to a report by Central Pollution Control Board (CPCB), published in March 2021, The estimated sewage generation from Class I cities and Class II towns (as per 2001 census) is 29129 MLD, which is expected to be 33212 MLD at present assuming 30% decadal growth in urban population. Against this, there exist STPs having 6190 MLD capacity while another 1743 MLD capacity is being added. Thus, the existing treatment capacity is just 18.6 % of present sewage generation and another 5.2 % capacity is being added. However, the actual capacity utilization of STPs is only 72.2% and as such only 13.5 % of the sewage is treated. This clearly indicates the dismal position of sewage treatment, which is the main cause of pollution of rivers and lakes. As an unorganized sector, the wastewater industry is slow to modernize and adopt new technologies. The 2015-16 CPCB report estimated that nearly 50% of functional Sewage Treatment Plants (STPs) were operating with outdated infrastructure. Common issues observed in 10-15 year old STPs included undersized balancing tanks and outdated clarifiers, leading to insufficient aeration and an overload of sewage. These problems frequently result in the closure of STPs. Additionally, the report highlighted that STPs in India are often understaffed, with employees lacking the necessary skills for effective sewage management and treatment. Despite government efforts to ensure a 24/7 power supply, many areas experience erratic and inadequate power. STPs require continuous power to function properly, with those having a treatment capacity of more than 200 MLD needing 1 megawatt of power. A 2010 CPCB survey found that out of 84 STPs, only 8 had a continuous power supply, while the rest received power for only 12, 14, or 18 hours a day. Most of the STPs surveyed lacked alternative power sources.
Setting up a sewage treatment plant in India is an expensive undertaking. Despite the union government's efforts to promote sewage treatment, local city authorities struggle with the high capital and operational costs of maintaining these plants. The expenses for STPs increase notably with the adoption of more advanced treatment technologies. The capital cost for STPs ranges from Rs.60 lakh to Rs.300 lakh per MLD, depending on the technology used. Additionally, the monthly operation and maintenance costs begin at a minimum of Rs.30,000 per MLD.
Road Ahead
The world urgently needs not only fresh water but also water for everyday use in homes, offices, and industries. Industry estimates indicate that this demand is tripling due to rising population, increasing urbanization, and rapid economic growth. According to NITI Aayog’s white paper ‘Urban Wastewater Scenario in India,’ there is a significant mismatch between sewage production and treatment capacity in India’s towns and cities, with the gap expanding as the population decreases. A 2022 report by Frost & Sullivan projects that the Indian water and wastewater treatment market will grow from $1.31 billion in 2020 to $2.08 billion by 2025, with a compound annual growth rate (CAGR) of 9.7 percent. The report also ranks India as the sixth-largest market for environmental technologies globally, and second in the subsector of water and wastewater management.
Urbanization in India is accelerating rapidly, with the number of Tier I and Tier II cities on the rise, and more expected to be added in the coming years. As urbanization and industrialization increase, so does the demand for water. The awareness and importance of wastewater treatment are becoming more prominent, and sectors that previously resisted installing wastewater or sewage treatment systems are now reconsidering. Government-imposed stringent policies aimed at conserving water resources have compelled many industries to establish wastewater treatment plants. Recognizing this opportunity, both Indian and foreign companies are either setting up offices in the country or forming joint ventures with domestic firms to expand their market share.
As water resources deplete at an increasing pace, the demand for sewage treatment plants (STPs) and wastewater treatment facilities is expected to grow. India’s water and wastewater treatment market is evolving, presenting significant opportunities for growth.
Follow