What is the "Water Treatment Sector"

Impact of Demand Supply Gap

Sewage Treatment Gap in India

Sewage Treatment Gap in India

Demand and Supply Situation in India

  • India is constantly faring low on measures of water deficiency for over a decade and is already in ‘Water Stress’ category
  • Moving from water stress to water scarcity situation at rapid pace.
  • Demand for water has been increasing at a high pace in the past few decades
  • Projected to overtake the water availability by 2050.
Per Capita Water Availability in India

Sectoral Water Demand Situation and Key Drivers

Category Demand Drivers Key Concerns


  • Population growth
  • Increased per capita consumption
  • Absence of regulatory binding on water usage and wastage


  • Expansion of water intensive industries – power, iron & steel, chemical is leading to increase in water demand
  • Absence of loss monitoring and subsequent reduction schemes


  • Demand for water intensive crops like wheat, rice are increasing substantially
  • Poor water management
  • Over-exploited of ground water
  • Reduction of GW level due to climate change
  • Water demand to go up by 20% by 2020
    • Industrial water requirement to double
    • Domestic water demand to grow by 40%
    • Irrigation likely to require 15% more water
Water Demand

Indian Market

Water Availability reduction by stage
18% of World pop and Livestock

Water Problem

  • Water availability per capita is decreasing –
    2,209 m3 (1991) v/s 1,341 m3 (2025)
  • Piped water coverage is only 18%.
  • Mismanagement of fresh-water reducing availability for other basic usages

Wastewater Problem

  • Wastewater generation in urban area
  • Sewage generation: 61,948 MLD
  • Installed Capacity: 23,277 MLD
  • Large, life-supporting water sources are currently highly polluted (Ganges and Yamuna River)
  • Irrigation – Uses 3-5 times more water than world standard
  • FinancingCurrent market is under-supplying the huge financing and operational need leaving many projects and tenders unrealized

Gaps, Implications & Opportunities in Water Sector

Poor quality; social & health costs
Coverage by individual connections: 64%
Duration of water supply- 1-6 hours
Coping cost as high as Rs. 3600 pm for 500 l of water
NRW: 74% of production
Revenue generation: from 20% of production
Funding gap of Rs. 3.2 lakh Cr over the next 20 years
Treatment technologies
Increasing penetration, improving efficiency
24x7 Water Supply
Collection efficiency
Private funding; better viability
Technology & Engineering
Management & Monitoring
Investment Avenues (Development & Operations)

Key Agencies: 3-Tier Structure Responsible for Delivering Urban Services

  • The central agency’s role is to define norms, lay guidelines, provide financial and technical assistance for projects on a case to case basis
  • At the state level:
    • The ministries are responsible for developing water supply, sanitation schemes and monitoring implementation of central government schemes
    • In certain states like Rajasthan, state parastatals are responsible for developing and operating water supply and sewerage infrastructure
  • After the 74th constitutional amendment there is an increasingly active role being played by the ULBs (Urban Local Bodies) in planning, developing and operating urban infrastructure
Urban Services - Governing Bodies
Urban Services - Governing Bodies left pic graphic
  • Ministry of Urban Development
  • Ministry of Jal Shakti (NMCG part of the ministry)
  • Central Public Health and Environmental Engineering Organization
  • Central Pollution Control Board
  • State Urban Development, Water and Sanitation Departments
  • Public Health and Engineering Departments
  • Irrigation Department
  • Urban Local Bodies
  • City Water Boards

Business Environment Drivers


►Population growth

►Increased water intensive food consumption

►Urbanization: now half of the world’s population

►Industrialization increasing water intensity


►Rate of ground water withdrawal is higher than the rate of discharge


►Inefficient use and management


►Increasingly stringent water quality standards and environmental regulations drive increased spending,

►Technological innovation


►More than $120 billion needs to be invested (2012-31) in water supply and sewerage infrastructure in India (HPEC, GoI report)

►Increased capital spending requirements, combined with growing consumer awareness of increasing water scarcity and concerns about water quality, are driving accelerating pricing trends and industry growth.

Opportunities & Market Size Across Value Chain

Water collection and treatment

Distribution and supply

Wastewater collection and treatment

Other services

Key activities

  • Collection & treatment of freshwater/ groundwater
  • Desalination plants
  • 24×7 water supply
  • Expansion of coverage for piped water supply
  • Rehabilitation of distribution systems
  • Sewerage network coverage, capacity building to STPs/ETPs
  • Decentralised system
  • Wastewater recycling
  • Water resource management
  • Water purification
  • Bottled water
  • Bore-wells

Critical success factors

  • Cost competitiveness of different equipment for water collection, viz-a-viz locally fabricated equipment, since the latter is much cheaper than imported equivalents,
  • Reliability of equipment
  • Efficient rural marketing network
  • Deep understanding of urban and rural underground topography
  • Working closely with township development authority/municipality in the PPP model
  • Strong engineering and project management skills
  • Access to modern Waste Water treatment technologies
  • Assess cost competitiveness through analysis of currently available technologies in India and capabilities of players in designing technologies on a large scale
  • Efficient reach & spread to key industry clusters
  • Efficient utilization of water through periodic evaluation and monitoring of losses — currently not the practice in most sectors in India
  • Analysis of loss and development of techniques to minimize loss

Market size

  • 2010 – $ 0.8 billion
  • 2030 – $ 32 billion
  • 2010 – $ 29.5 billion
  • 2030 – $ 1750 billion
  • 2010 – $ 12.16 billion
  • 2030 – $ 1300 billion
  • 2010 – $ 3.5 billion
  • 2030 – $ 45.6 billion