India is urbanising at a rapid pace, surpassing previous estimates. Rising industrial activity, economic growth, and shifts in demography, food consumption, lifestyle and land use patterns are all contributing to the surge in water demand, which is projected to be two times the available supply by 2030. Moreover, the per capita water demand is projected to increase to 167 litres per day by 2050 from 99 litres per day in 2009.
Over 600 million people in India are facing extreme water stress and water insecurity as per the Energy and Climate Change report 2021. According to Aqueduct Water Risk Atlas, World Resources Institute, India ranks 13th amongst the 17 extremely water-stressed countries globally. Further, 17 per cent of the groundwater blocks are identified as overexploited by the Association of Geospatial Industries while 80 per cent are severely polluted due to untreated wastewater and other contaminated discharge as reported by the World Bank.
Key reasons for water stress
Water shortage is becoming increasingly severe in India due to declining water supplies. Some of the reasons for water stress in the country are:
Threats to water resources: India faces an overreliance and overexploitation of groundwater resources. Moreover, the groundwater resources are often contaminated. Climate change is also posing a threat to water resources with extreme weather events.
Infrastructural gaps: India is not developing infrastructure at the required pace and scale. The ageing infrastructure faces operation and maintenance (O&M) challenges and losses. Moreover, modern, agile, climate and disaster resilient infrastructure is being developed at a slow pace.
Operational inefficiencies: One of the major reasons for water stress in India is the losses due to theft and leakages. Non-revenue water (NRW) is estimated at 40-60 per cent. Moreover, the lack of sustainable O&M models and inadequate cost recovery (estimated at 30-35 per cent) pose challenges to the water ecosystem. High energy consumption in water treatment and distribution, a lack of focus on service delivery and low technological enablement are some of the factors adding to the stress on the system.
Inadequate capacity: The development of wastewater treatment in India is taking place at a slow pace, with limited wastewater reuse. In order to reduce the stress, wastewater treatment and reuse will have to play a major role.
Wastewater generation and treatment
The sewage and wastewater treatment market in India is still evolving, with 50-60 per cent of the country’s wastewater undergoing treatment. The government has launched various programmes, such as the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Namami Gange, to enhance the country’s sewage and wastewater treatment infrastructure. Many new projects are being undertaken to increase sewerage capacity. For instance, recently, under AMRUT 2.0, the central government approved the development of 39 sewage treatment plants (STPs) in Telangana. These STPs will have a collective capacity of around 970 million litres per day (mld). According to India Infrastructure Research, as of March 2024, more than 460 projects with a combined capacity of around 16,500 mld are planned in the wastewater segment in the coming years in India.
Further, the repair and rehabilitation of STPs is emerging as a notable trend, extending the life of treatment plant infrastructure. Under the Namami Gange programme, around 200 sewage infrastructure projects worth Rs 315.76 billion have been taken up for the creation and rehabilitation of 6,208.12 mld of STP capacity. Of these, 111 sewerage projects have been completed, resulting in the creation and rehabilitation of 2,844 mld of sewage treatment capacity, as of February 2024.
Industries are making concerted efforts to utilise water judiciously to mitigate the risk of future water shortages. The installation of captive zero liquid discharge (ZLD) plants is gaining momentum. Wastewater reuse projects for industrial and non-potable applications have reduced reliance on freshwater. Moreover, there has been a perceptible increase in the use of recycled water for power plants.
Desalination and industrial water demand
Seawater desalination is a promising solution for sourcing potable water worldwide. The Indian coastal states with 7,800 km of shoreline have significant potential for desalination. However, various factors determine the use of desalination for meeting water supply requirements, such as geographical proximity to seawater, environmental impact, cost of treatment, consumption of energy in the treatment process, etc.
According to India Infrastructure Research, as of March 2024, 27 municipal and industrial desalination plants with a total capacity of around 1,600 mld are expected to come up in the country in the next few years. States such as Tamil Nadu and Gujarat are expected to lead in these upcoming projects. The majority of demand will be driven by new and upcoming refineries, power plants and metal industries located in the coastal areas. In recent years, technologies such as brine disposal via ZLD, counter-flow reverse osmosis and low temperature thermal distillation have gained traction.
The demand for industrial water in India has witnessed a significant increase owing to growth across heavy industries such as power, iron and steel, oil refineries, sugar, textiles, and pulp and paper. Besides freshwater sources, industries are exploring alternative sources, such as recycled wastewater and desalination, to meet their growing demand. Industrial units are shifting to advanced membrane-based technologies to improve treatment capabilities and manage operational costs.
Some of the key trends that are expected to shape the future of the industrial water segment and desalination in India are use of sustainable industrial water, identification of alternative water sources, effluent management and the adoption of advanced technologies.
Technology adoption
Digitalisation is emerging as a key solution for achieving water resilience and improving operational efficiency in water management. Many cities are increasingly using technology solutions like SCADA, internet of things (IoT), GIS systems, artificial intelligence, digital twins and satellite surveillance for monitoring, collection and treatment systems.
This is expected to facilitate holistic planning of infrastructure and allocation of resources, streamline and enhance the capabilities of utility workforces, increase revenue, enable real-time monitoring, improve operational efficiency of plants, detect leakages, reduce NRW, enhance distribution networks and connections, strengthen operational flexibility and resilience, and improve water quality surveillance and reliability of service delivery to end consumers.
Some of the key technology trends in the Indian water market are the deployment of GIS for mapping water supply lines and sewer lines, and identifying areas prone to waterlogging for better planning and management of water resources; deployment of IoT-based sensors for real-time monitoring of water quality and quantity in the distribution network for leak detection, quality control and efficient water distribution; and SCADA implementation for the real-time monitoring and control of water treatment plants and distribution networks. These technologies are improving the efficiency and reliability of water supply in cities.
Despite these efforts, the overall adoption has been slow due to a complex institutional environment resulting in fragmented technology adoption, lack of incentives, limited engagement between utilities and technology providers, inadequate capacities for needs assessment and technological appraisal, integration planning, cyber vulnerability risks associated with digital systems, and inadequate financial resources.
24×7 water supply and future of the sector
Over the years, India has witnessed a notable rise in uninterrupted water supply, which is crucial for improving the citizens’ standard of living. Many government programmes like AMRUT and the Jal Jeevan Mission aim to provide 24×7 water supply in the country. Several urban local bodies are also undertaking projects related to round-the-clock supply of water. Upcoming projects related to 24×7 water supply include those in Agra, Gurugram, Belapur, Ludhiana and Manimajara.
However, water resources in India are under constant pressure owing to population growth and rapid urbanisation. Local bodies must prioritise 24×7 water supply and improve water network management. With the increasing government focus on water supply, more cities are now implementing projects for 24×7 water supply. City authorities are equipping water utilities with technical and digital knowledge to ensure the timely completion of water supply projects. Technology initiatives are also being taken to improve the overall water supply situation in the country.
Based on inputs from a presentation by KPMG at a recent India Infrastructure conference
