India’s water and wastewater sector is moving beyond asset creation towards a more integrated approach focused on efficiency, reuse and sustainability. Utilities are expanding treatment infrastructure, adopting digital technologies and strengthening operations to reduce losses and improve service delivery. At the same time, treated used water (TUW) is gaining importance as a reliable resource, supported by new reuse policies, recycling initiatives and increasing investments in treatment capacity. These efforts are helping build more resilient and resource-efficient urban water systems. Key government officials discuss the key developments, reforms and priorities shaping the sector’s future…
How would you assess the progress in the water and sewage sector over the past year? What are the key initiatives and projects currently under way?
Shamim Akhtar
Uttar Pradesh has achieved a massive legal and execution breakthrough over the past year. The state cabinet has approved the Safe Reuse of Treated Water Policy [SRTW] 2026, establishing a highly ambitious five-phase water reuse road map.
- Phase I (by 2030): Where sewage treatment plants (STPs) are operational and collection/treatment capacity already exists, 50 per cent of TUW shall be safely reused by 2030.
- Phase II (by 2035): Where STPs are operational and collection/treatment capacity already exists, 100 per cent of TUW shall be safely reused by 2035.
- Phase III (by 2030): Where STPs do not exist or are non-operational and collection/treatment capacity is currently absent, 30 per cent of TUW shall be safely reused by 2030.
- Phase IV (by 2035): Where STPs do not exist or are non-operational and collection/treatment capacity is currently absent, 50 per cent of TUW shall be safely reused by 2035.
- Phase V (by 2045): Where STPs do not exist or are non-operational and collection/treatment capacity is currently absent, 100 per cent of TUW shall be safely reused by 2045.
Further, the key projects and investments by Uttar Pradesh Jal Nigam (UPJN) currently under way include:
- AMRUT 2.0 Infusion: The State Level High-Power Steering Committee has approved 433 water supply and 41 sewerage projects worth Rs 307.52 billion against a central financial assistance of Rs 81.61 billion. The target is to achieve 100 per cent water coverage across all urban local bodies (ULBs) and 100 per cent sewerage coverage across all 60 Atal Mission for Rejuvenation and Urban Transformation (AMRUT) cities. The above projects include 24×7 water in one ward of each AMRUT city and all 18 wards of Ayodhya Dham. The Varanasi Municipal Corporation has targeted 100 per cent coverage of water supply and sewerage systems.
- SBM (U) 2.0: Under the Swachh Bharat Mission [SBM] (Urban) 2.0, Uttar Pradesh has been allocated Rs 40.74 billion for the entire mission period (2021-26) by the Ministry of Housing and Urban Affairs. Among the core objectives of this mission (garbage-free cities, legacy dumpsite remediation, wastewater and fecal sludge and sustainability of open defecation-free status), wastewater management received a major part of the allocated funds.
- Deployment of smart tools in water and sewerage management across smart cities: Tools such as supervisory control and data acquisition (SCADA) are being implemented across water supply and sewer projects in Uttar Pradesh. Projects in cities like Ayodhya, Varanasi, Meerut, Kanpur, Agra, Bareilly, Prayagraj and Lucknow have already been completed on a pilot basis and are now under the operation and maintenance (O&M) phase. Many such projects are now under execution in different parts of Lucknow, Noida and Ghaziabad for smart water management.
- Ganga basin network expansion: New dynamic projects backed by the National Mission for Clean Ganga are under construction/operational, including 33 STPs and 32 sewage pumping stations in towns like Varanasi, Kanpur, Prayagraj, Mirzapur, Ghazipur and Farrukhabad. The total capacity addition is around 1,026 million litres per day (mld), including heavy scaling of multiple high-capacity STPs across Shamli, Saharanpur, Bulandshahar, Raebareli, Pratapgarh, Bhadohi, Hapur, Mathura, Hathras and Meerut to actively intercept effluent before it enters the Ganga and Yamuna river systems.
UPJN has made a significant shift from “new infrastructure creation” towards “rehabilitation, O&M and reuse”.
Dr Vijay Kumar Ashtankar
The Brihanmumbai Municipal Corporation (BMC) is undertaking a plethora of initiatives given the sheer scale and complexity of Mumbai’s water distribution network, which spans 4,000-5,000 km and serves a highly dense and diverse urban population. To manage this extensive network effectively, BMC has put in place a structured system for water auditing and continuous network monitoring. The primary water network, which covers the stretch from the source to the water treatment plant (WTP) membrane bioreactor (MBR), is monitored daily by the master control centre at the Bhandup Complex. The secondary network, extending from the MBR to service reservoirs, is similarly monitored on a daily basis through the central control centre under the zonal distribution control system. The tertiary network, which comprises the distribution system from service reservoirs to individual distribution zones, is monitored and managed by the respective zonal distribution heads. This multilevel monitoring framework enables BMC to track water movement across different stages of the supply network and identify potential inefficiencies and losses more effectively.
BMC has also undertaken pivotal wastewater management projects by initiating the planning for six STPs for sewerage treatment before the untreated water is discharged into the Arabian Sea. These STPs are at an advanced stage of completion, supported by the efforts of the government and BMC authorities. It is also proposed to reuse the treated water. To meet the growing water demand for commercial and industrial use in Mumbai, all six STPs will be commissioned by 2029.
What measures are being taken to bring down NRW, enhance efficiency and improve O&M?
Shamim Akhtar
To address extensive system water losses across massive municipal corporations and municipal boards in Uttar Pradesh, UPJN has altered its engineering mandates. These involve designing the network distribution system on a district metered area (DMA)-based approach and incorporating various instruments like pressure meters, SCADA systems, flow measuring instruments, pipe fittings, water connection systems, and sophisticated leak detection systems to identify, measure and locate leakages. It is using new technologies to repair the leakages in mission mode. It is also deploying efficient billing and revenue systems to reduce revenue loses and non-revenue water (NRW). Some of the key initiatives are:
- Consolidated city contracts: The state has moved away from fragmented and ward-level-based piecemeal contracts. Under the new directives, each project must be executed through a single unified tender. This approach eliminates overlapping responsibilities and establishes one agency’s accountability for pipeline pressure monitoring and leakages.
- Widespread shift to HAM: UPJN has shifted from traditional engineering, procurement and construction models. Major new infrastructure projects, such as the 60 mld Varanasi STP, the 45 mld Pandit Deendayal Upadhyaya Nagar Chandauli STP, and the 113 mld Aligarh STP, are strictly bid out under the hybrid annuity model (HAM). Pay-outs to private operators are held in escrow and released only if treated water meets pollution limits over a 15-year period.
- SCADA intercepts: Modern telemetry grids are tracking live pumping and night-flow fluctuations across municipal DMAs to locate structural leakages before pipelines fracture.
“Private operators are helping transform Uttar Pradesh’s water sector from a system of building assets to one centred on managing long-term resource cycles.” Shamim Akhtar
Dr Vijay Kumar Ashtankar
NRW levels exceeding 30 per cent are considered undesirable as per global standards. BMC is working to reduce NRW in Mumbai and enhance the city’s long-term water sustainability through infrastructure augmentation, adoption of advanced technologies and customer management-oriented reforms. Mumbai’s NRW levels have already fallen from around 33 per cent to nearly 29 per cent, with BMC undertaking further measures to improve water use efficiency. These measures include a customer relationship management strategy supported by 24×7 call centres, SCADA systems and geographic information system mapping. BMC has also undertaken pilot projects in areas such as Mulund to minimise water losses through DMA-based monitoring and SCADA integration.
Additionally, efforts are being made to account for leakages, and round-the-clock emergency repair cells are being established for each ward area. A separate leak detection cell is functional to address instant issues of leakages and contamination, as well as pipe bursts in the distribution network. The team is provided with advanced equipment to detect the leakages. Mechanical meters are also being replaced with digital meters in a phased manner.
To strengthen water monitoring and operational efficiency, BMC has undertaken extensive metering initiatives across the city. Of the total 408,492 household tap water connections provided by BMC, nearly 98 per cent (399,091 connections) are currently metered connections. To further improve the monitoring accuracy of water consumption measurement and billing efficiency, BMC is evaluating the replacement of conventional mechanical meters with electromagnetic and ultrasonic meters, although concerns regarding the reliability and performance of these advanced meters under intermittent supply conditions remain under review. Pilot projects involving smart water meters and wireless communication systems were also implemented in areas such as Andheri, with regular performance assessments being carried out under different installation and operational conditions to evaluate their long-term suitability for Mumbai’s water distribution network. Currently, around 95,000 automated meter reading meters ranging from 15 mm to 100 mm have been installed across BMC’s jurisdiction.
BMC is also undertaking various innovative pilot projects to explore digital and technological solutions for water management. A key example includes a cloud-based smart water management internet of things-based platform called “Drop by Drop” for smart water billing, tariff calculations, geographical asset management and SCADA integration.
What more needs to be done (in terms of policy, tariffs, standards and demand creation) to make treated wastewater a viable and reliable resource?
Shamim Akhtar
For Uttar Pradesh to hit its 2030 target of 50 per cent water reuse, the state is implementing targeted adjustments across four primary pillars:
- Policy and phased sector sourcing: The SRTW Policy separates users into distinct phases. Under Phase I, water goes to ULBs, landscaping, construction and broad horticulture. Phase II expands usage into thermal power plants, manufacturing clusters, railways and specialised farming.
- Tariffs and cost parity: Fresh groundwater extraction remains heavily exploited across industrial belts like Noida and Kanpur. The state needs a rigid groundwater cess alongside heavily subsidised pricing for treated sewage to convince factory owners to shift to recycled water.
- Standards: The Uttar Pradesh Pollution Control Board strictly enforces standard Central Pollution Control Board discharge criteria (BOD ≤ 10 mg per litre and TSS ≤ 10-20 mg per litre for major urban nodes). The next step involves defining explicit chemical safety levels tailored for food crop irrigation versus industrial boiler systems.
- Demand creation and dual piping: Under the third phase of the state’s plan, cities will mandate dual-pipe infrastructure inside real estate developments, providing treated, non-potable water to households for flushing and gardening.
Dr Vijay Kumar Ashtankar
BMC is undertaking significant reforms, including socio-economic ones, so that people can accept wastewater as drinking water or for industrial use after tertiary treatment. A separate conveyance system comprising underground tunnels and pumping stations is planned for injecting wastewater for reuse. Private sector entities are being encouraged to use treated wastewater, while agreements with PSUs and industrial sectors are planned. The response from these players has been encouraging, with overall system improvement expected to be seen shortly.
What are the biggest bottlenecks in project execution?
Shamim Akhtar
The key challenges include:
Vast gaps in household network connectivity: While state-of-the-art STPs are being rapidly built along major river banks, the underground piping network within old city centres (such as parts of Varanasi, Prayagraj and Old Lucknow) continues to lag behind. This leaves multi-crore plants operating well below capacity. Currently, water supply coverage in the state is at about 49 per cent and is expected to increase to about 72 per cent after the completion of AMRUT 2.0. Sewerage coverage across Uttar Pradesh’s 60 AMRUT towns currently stands at about 30.5 per cent and is projected to reach 39 per cent after completion of AMRUT 2.0.
Land acquisition and right-of-way delays: Acquiring urban or peri-urban land for setting up WTPs, STPs, overhead tanks, tubewells, conveyance mains and pipelines often faces prolonged legal disputes, local resident/farmer protests and inter-departmental friction. These may include obtaining road-cutting permissions from the public works department and the National Highways Authority of India, as well as permissions for railway lines.
ULB financial strain: Smaller municipal councils (nagarpalikas/panchayats) across Uttar Pradesh lack the independent revenue base needed to cover high operational costs associated with electricity, chemicals and maintenance. This can lead to operational shutdowns.
Lack of resources for project execution: Timely availability of funds and skilled/experienced project teams also plays a major role in timely project execution. Therefore, there is a pressing need for capacity building of project implementing agencies and private contractors. Streamlining payment mechanisms is also needed.
Dr Vijay Kumar Ashtankar
The biggest bottlenecks in project execution are the challenges of implementing large-scale water and wastewater infrastructure projects in Mumbai’s densely populated urban environment. Land acquisition constraints, utility shifting, traffic management, statutory approvals and coordination among multiple agencies often impact project
timelines.
In addition, executing works while maintaining uninterrupted water supply and sewerage services, along with the complexities of underground construction and tunnelling, requires careful planning and phased implementation. However, continuous monitoring, strong institutional support and improved project management practices are helping address these challenges and accelerate project delivery.
“The private sector should adopt a more proactive approach towards wastewater reuse and promote its wider adoption across cities.” Dr Vijay Kumar Ashtankar
How is the private sector assisting cities in adopting a more integrated approach to water management? How can their role be further enhanced?
Shamim Akhtar
Private operators are helping transform Uttar Pradesh’s water sector from a system of building assets to one centred on managing long-term resource cycles.
The current contributions include consortiums that act as long-term concessionaires under 15-year O&M agreements. Specialised private operators handle cluster assets (such as managing the complete interception, diversion and treatment network for a city), thereby stabilising municipal operations.
The key initiatives to enhance private sector participation include:
City-level reuse action plans: Capitalising on pilot models currently being rolled out in Agra and Prayagraj with technical assistance from the Centre for Science and Environment. These models create clear frameworks for private players to monetise treated wastewater directly with industrial and commercial buyers.
Letter of credit protection: Securing private capital by backing HAM projects with state-level escrow accounts, ensuring operators are insulated from the weak finances of smaller municipalities.
Dr Vijay Kumar Ashtankar
The private sector should adopt a more proactive approach towards wastewater reuse and promote its wider adoption across cities. Greater emphasis should be placed on developing and implementing innovative solutions for wastewater treatment and reuse. Private sector players can also support cities in identifying suitable end-use applications and creating reliable reuse systems. Their greater adaptability in adopting wastewater reuse technologies and practices can help reduce freshwater demand. This will contribute to more sustainable and integrated urban water management.
What should be the sector priorities for the next few years?
Shamim Akhtar
The sector should focus on the following priorities:
- Execute the 2030 reuse targets: Fast-track the conversion of the SRTW policy 2026 framework into localised municipal by-laws across all 17 municipal corporations, with a focus on ULB populations of more than a million.
- Synchronise underground networks with STPs: Promote sewer network project approvals for unutilised STPs.
- Mandate industrial swap-outs: Enforce regulations requiring all industrial clusters (Uttar Pradesh State Industrial Development Authority zones) and thermal power stations located within 50 km of an operational municipal STP to completely stop using fresh water for cooling and processing.
- Decentralise systems for rapidly growing towns: Shift focus towards decentralised wastewater treatment systems in rapidly developing peri-urban areas and smaller towns, avoiding the immense capital costs of building massive centralised networks.
Dr Vijay Kumar Ashtankar
BMC is pursuing major infrastructure projects to meet Mumbai’s future water demand, which is projected to reach nearly 6,000 mld by 2041. As part of these efforts, the civic body is investing close to Rs 160 billion in STPs, with plans to reuse tertiary treated wastewater for potable and domestic purposes through conveyance systems linked to the Bhandup Complex and Vihar Lake. In addition, BMC has awarded contracts for large-scale WTPs with a combined capacity of 2,000 mld, along with a desalination project worth nearly Rs 100 billion to an Israel-based company. The desalination plant is expected to initially produce around 200 mld of water, with plans to scale up the capacity to 600 mld within four years.
Through these initiatives, BMC aims to strengthen Mumbai’s long-term water security while simultaneously addressing NRW challenges and meeting the city’s growing future water demand.
