India’s industrial wastewater management landscape is undergoing a significant transformation from a disposal-driven approach to one centred on recovery, reuse and resource efficiency. As water stress intensifies and sustainability-based commitments become urgent, wastewater is increasingly being recognised as a valuable source of reusable water, energy and nutrients. Across industries such as steel, power and others, the adoption of advanced treatment technologies, zero liquid discharge (ZLD) systems and circular water practices is picking up pace. Alongside, evolving environmental, social and governance (ESG) priorities, policy reforms and economic pressures are reshaping the industrial wastewater management landscape. At a recent India Infrastructure conference, industry leaders highlighted the current scenario of industrial wastewater management in India, key water recycling and reuse initiatives, cost economics and other aspects. Key takeaways from the discussion…
Current scenario
India’s wastewater treatment continues to pose both a significant challenge and a major opportunity for resource recovery and sustainable industrial development. As per the estimates of the 2021-22 Central Pollution Control Board (CPCB) report, sewage generation in the country continues to outpace the available treatment capacity, with only around 35 per cent of the total volume currently covered by operational treatment infrastructure. More critically, actual utilisation of this operational capacity remains close to 30 per cent. The variation across states is equally striking, with treatment performance ranging from nearly 15 per cent in Rajasthan and around 30 per cent in Uttar Pradesh to almost 70 per cent in Haryana. The situation highlights two interconnected concerns. The country still struggles to adequately capture and treat wastewater, while wastewater itself is yet to be fully recognised as a recoverable resource. Besides, increasingly, the transition in terminology from “wastewater” to “used water” reflects an emerging shift in perspective, one that emphasises recovery, reuse and circularity rather than disposal.
Underlying potential of treated water
Within this framework, treated industrial wastewater offers three key resources that merit greater emphasis – water, energy and nutrients. Treated water can be reused across industrial and other applications, thereby reducing the dependence on freshwater sources. It also offers significant energy recovery potential, with organic matter converted into usable energy through anaerobic digestion to help offset operational energy demand. Meanwhile, nutrient recovery represents another underutilised opportunity. Wastewater contains nutrient-rich compounds that can be reclaimed and reused, reducing resource loss and environmental burden. The integrated recovery of water, energy and nutrients also helps lower carbon emissions, positioning wastewater management as a multidimensional sustainability strategy rather than merely a sanitation exercise.
Demonstration projects have already illustrated the feasibility of such approaches. Under the Pavitra Ganga initiative in Jajmau, Kanpur, and in the Barapullah drain project in Delhi, pilot-scale technologies were implemented to showcase resource recovery models. Anaerobic digestion is one such technology. It combines organic waste and sewage, concentrating organic matter and enabling anaerobic digestion for energy recovery.
Conservation and reuse initiatives across industries
India’s steel industry is emerging as a key example of industrial water efficiency and wastewater reuse. In this regard, several steel companies with integrated townships are now sourcing significant volumes of water from sewage treatment plants. Further, the industry has changed its approach to effluent treatment. Instead of treating all wastewater together in centralised plants, steel companies are increasingly adopting wastewater treatment systems to improve efficiency and reduce operational and energy costs.
Also, the industry has improved water circulation and process efficiency through measures such as the use of pyrophosphate to increase cycles of concentration from two to five in some plants. Additionally, steel companies have significantly reduced specific water consumption (SWC), bringing it down from over 10 cubic metres per tonne of steel 10 to 15 years ago to nearly 3 cubic metres at several large plants. However, the broader industry average remains 5 to 6 cubic metres per tonne. Furthermore, over the past two to three years, recycled water use in some steel companies has increased by nearly 8 per cent, while freshwater consumption has declined by 5 to 7 per cent. These simultaneous improvements indicate a dual strategy focused on enhancing recycling while reducing dependence on freshwater resources.
Similarly, the power sector has begun adopting more resource-conscious approaches towards industrial wastewater management. Tata Power, for instance, has emphasised the need to move beyond regulatory compliance and pursue higher internal standards for water efficiency. While prevailing norms prescribe an SWC of 3.5 cubic metres per MW, several Tata Power plants reportedly maintain an SWC close to 2.0 cubic metres per MW.
On similar lines, wastewater reuse and water conservation is visible in thermal power plants operated by the National Thermal Power Corporation (NTPC). It follows a strong ZLD system across its facilities. Also, the wastewater from clarifiers, effluent treatment plants and demineralisation units is first sent to neutralisation pits, then treated and reused in ash handling operations.
ESG and cost economics
The economics of treated industrial wastewater is increasingly being viewed through a broader sustainability lens, where environmental responsibility and social acceptance often outweigh purely financial considerations. Water-related issues directly affect surrounding communities and can quickly translate into public scrutiny and resistance, making responsible water management central to corporate credibility and long-term operations.
In response, large industrial users such as NTPC have expanded wastewater reuse and recycling initiatives across their facilities. Several plants now utilise treated wastewater for cooling industrial systems and horticulture, and facilities like NTPC Dadri have adopted advanced tertiary treatment systems using activated filter media to further refine treated wastewater for industrial applications. However, in the industrial sector, the large-scale adoption of treated wastewater is likely to remain difficult unless its pricing becomes comparable to that of fresh water. Without such parity, industries have limited financial incentive to invest in recycling and reuse systems, restricting their scalability and long-term viability.
Rise in desalination for industrial reuse
The uptake of desalination has emerged as an important component of long-term water treatment and reuse in India. A notable example is the desalination plant commissioned by IDE Technologies for Reliance at Jamnagar in 1995, which has been operating continuously for over three decades to supply desalinated water for industrial use. The plant’s desalination capacity was progressively increased in tandem with Reliance’s operational expansion. IDE Technologies has also supplied desalinated water to Nuclear Power Corporation of India Limited for industrial cooling applications, demonstrating the role of desalination in supporting critical infrastructure. These examples highlight the long-term reliability of large-scale desalination systems in meeting stringent industrial water quality requirements.
Moreover, in coastal facilities such as NTPC Simhadri, NTPC Vallur and Ratnagiri, seawater is being utilised as a resource. Fresh water is being generated through multiple-effect distillation techniques and waste heat utilisation from flue gases. This water is further processed through remineralisation and demineralisation systems. One of the notable outcomes of these initiatives has been the production of water used in Rail Neer bottling, which has been developed through NTPC’s internal research and development efforts. Additionally, solar-powered desalination systems have been implemented to further enhance seawater utilisation. These systems produce low total dissolved solids (TDS) water, approaching demineralised quality levels.
Charting the way ahead
Long-term water sustainability is increasingly bringing the economics of industrial water management into focus. Water continues to be underpriced, limiting incentives for efficiency, conservation and reuse by industries. There is also a growing need for stronger and more coherent regulatory frameworks, including uniform policies across states, clearly defined reuse targets and pricing mechanisms that support sustainable industrial water management. Greater emphasis is now being placed on moving beyond discharge-based regulation towards performance-based approaches that actively encourage recycling, reuse and efficiency improvements. Another gap is the absence of fit-for-purpose standards that can align different water qualities with suitable end uses. In addition, by-products such as salts generated during treatment processes still lack well-developed markets. Assured offtake mechanisms and transparent pricing structures are therefore seen as important for improving the commercial viability of such byproducts and strengthening the broader circular water economy.
Besides, data centres are emerging as major water consumers due to their heavy cooling requirements, particularly with the rapid expansion of AI and digital infrastructure. Industry stakeholders have highlighted the need to align data centre development with local water availability, stressing that such facilities cannot be sustainably located in water-scarce regions.
