WATER & WASTE WATER TREATMENT SECTOR: TACKLING THE CHALLENGES IN EMERGING COUNTRIES

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

Content

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

Industry

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

Agriculture

  • 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

Gaps
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
Implications
Treatment technologies
Increasing penetration, improving efficiency
24x7 Water Supply
Metering
Collection efficiency
Private funding; better viability
Opportunities
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

Drivers
STRONG DEMAND GROWTH DRIVERS

►Population growth

►Increased water intensive food consumption

►Urbanization: now half of the world’s population

►Industrialization increasing water intensity

DECLINING SUPPLY

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

►Pollution

►Inefficient use and management

IMPROVING REGULATORY ENVIRONMENT

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

►Technological innovation

INCREASED CAPITAL INVESTMENT

►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

Leave a Comment

Your email address will not be published. Required fields are marked *