Opportunities in the Water Sector in India. Opening Remarks by Ambassador Gurjit Singh
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1 Opportunities in the Water Sector in India Opening Remarks by Ambassador Gurjit Singh
2 Water in India : A Primer Annual precipitation (including snowfall) of about 4000 km 3 Out of the total available water resources, only 1123 km 3 is utilizable (690 km 3 surface water and 433 km 3 ground water) Uneven availability and high level of inefficiencies are leading to water scarcity. Drinking Water 7% Estimated Sector wise Water Use Industry 1% Energy 1% Other 6% Per capita water availability is approximately 1588 m 3 in 2010 against 5200 m 3 in This figure is likely to increase further with a consequent increase on ground water blocks. 3 Irrigation 85% Source: 1 India WRIS, available at 2 Guidelines For Improving Water Use Efficiency in Irrigation, Domestic & Industrial Sectors, CWC, GoI, 3 DYNAMIC GROUND WATER RESOURCES OF INDIA, 2011, CGWB, GoI;
3 Promising initiatives by the Government of India Swachh Bharat Elimination of open defecation, manual scavenging and promotion of scientific waste management are the cornerstones of this initiative. At the same time creating an enabling environment for private sector participation in Capex (capital expenditure) and Opex (operation and maintenance) also remain key priorities. National Mission for Clean Ganga It is an ambitious initiative which integrates the efforts to clean and protect the Ganga river in a comprehensive manner. Smart Cities Mission & Amrut (Atal Mission for Rejuvenation & Transformation) 500 Cities Under the Smart cities initiative, the focus will be on core infrastructure services including but not limited to adequate and clean water supply, sanitation and Solid Waste Management. Smart City Action Plans will be implemented by Special Purpose Vehicles(SPV) to be created for each city and state governments will ensure steady stream of resources for such SPVs. On the other hand, AMRUT adopts a project approach to ensure basic infrastructure services relating to water supply, sewerage, septage management, storm water drains, transport and development of green spaces and parks with special provision for meeting the needs of children. The Hon ble Prime Minister has stressed on the need of Foreign Direct Investment for all these missions 3
4 Private Sector: Poised to play a key role Funding and capacity building : Financial assistance for infrastructure development in the water sector while building capacity and training managers, technicians and other personnel. Technology: Frugal innovation which can provide efficient water resources management. Scientific and policy research: Research on integrated management of resources, such as energy-water-land is essential. Industrial water disclosure: Setting benchmarks and making industries part of forums to promote industrial water use efficiency Private water vendors: Important to maintain quality as they supply water to the informal settlements. Source: Sugam and Ghosh (2013) Urban Water and Sanitation in India; available athttp://ceew.in/pdf/ceew-veolia-urban-water-and- Sanitation-in-India-Nov13.pdf. The Council on Energy, Environment and Water (CEEW) is a leading think tank in South Asia
5 Opportunities for Indo-German Partnerships in Water, Waste and Sanitation Sewage as a resource: It is estimated that 28,000 Million Litres/ day (MLD) of the 38,000 MLD which is discharged in India as sewage can be reused by industry. The reuse potential of this discharge in monetary terms is estimated to be close to 10 billion USD. Urban Water Management: It is estimated that the average non-revenue water, or water that has been produced and is lost before it reaches the customer is as high as 39% in India. Industrial Effluent Treatment: German technology can be effectively leveraged to produce solutions across equipment, technology and utility verticals. Sunrise sectors such as desalination and pisciculture also show immense potential in the coming decades.
6 Potential business models for German companies The Government of India as well as several state governments have issued a large number of tenders in the water sector. Further, contracting and tendering is done in a transparent way through electronic bidding portals. Alternatively, initiatives such as Smart Cities are open to FDI without going through the tender or bidding route. It is therefore clear that both the Central as well as state governments are committed to attracting investment into the infrastructure sector. German companies could explore the market through mechanisms such as: Public Private Partnerships (PPPs) which bring in capital as well as private sector efficiencies to urban infrastructure. German companies could either establish subsidiary companies or set up joint venture companies with Indian partners. Indian partners equipped with an in-depth knowledge of market conditions coupled with a solid track record could prove to be valuable assets.
7 Conclusion Priority Sectors Urban water management and sanitation Industrial and wastewater treatment as well as reuse Irrigation Enablers Proactive Policy Huge demand and market potential Vibrant private sector PPPs
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