The Maharashtra cabinet approved a policy to promote a circular water economy on October 7, 2025, by mandating the processing and reuse of sewage and wastewater across 424 urban local bodies (ULBs). A budget of Rs 5 billion has also been approved for the Urban Development Department to roll out this initiative. This policy will be applicable to all ULBs, large water users, implementation mechanisms, and citizens.
Under the policy, treated wastewater is to be used for non-potable purposes in a priority order, thermal power plants, industry, urban uses, and agricultural irrigation. Oversight will be provided via a district-level Joint Monitoring Committee (headed by collectors or municipal commissioners) and a state-level High-Level Steering Committee chaired by the Chief Secretary. The move is part of Maharashtra’s efforts to curb the discharge of untreated sewage into rivers and seas, reduce demand on freshwater resources, and better align with sustainability goals.