CII Gujarat 2014- Securing Our Water Future

Knowledge Report for CII Gujarat Water Summit-2014
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Foreword
D J Yadav
Chairman, Water Seminar & 5th
Gujarat Water Summit &
Chairman, CII Gujarat Energy & Environment Panel and
Director, Arvind Envisol Ltd.
The CII-Gujarat Water Summit is currently in its 5th
edition and has served as a key platform for
discussing and deliberating various facets of the water sector. These discussions hold great relevance
for the state of Gujarat that has the distinction of being one of India’s most prosperous and
industrialized states. The State has been witnessing a healthy rate of growth, boosting its aspirations
of emerging as a key business hub.
The traditional issues of water availability in the State have led to the awareness, particularly among
the Governing authorities on the need to develop the adequate infrastructure to provide water to all
its citizens. This has led to the creation of marquee infrastructure projects in the water space, with
similar large projects being planned in other parts of Gujarat. But the overall water supply demand
scenario in the state necessitates a sustained approach towards meeting the issues in the sector.
The previous editions focused on conducting a water audit of Gujarat, utilizing the available
Government resources and identifying key demand side and supply side water management
techniques that could help reduce the overall water consumption. The current report is part of an
ongoing effort to identify and develop solutions for the challenges to the water sector in Gujarat. The
focus of this report has been on providing a structured framework for developing water management
strategies for the various stakeholders. With this background, CII had requested TATA Strategic
Management Group to probe the key issues and challenges pertinent to the various end-users and
arrive at key action pointers.
This report presents a broad overview of water scenario in Gujarat, followed by a snapshot of key
technologies and approaches for domestic and industrial water management. The learnings garnered
have been captured in the section on action pointers that provides a four step framework for long-
term water strategy, including segmentation of issues and identifying a host of potential solutions. A
section also covers the potential opportunities for various companies operating in the water value
chain.
I would like to take this opportunity on behalf of my team to thank all those who provided their
valuable inputs and feedback in the preparation of this report. We would like to thank TATA Strategic
Management Group for being our knowledge partner and for preparing and providing this insightful
report. I would also like to extend my appreciation to everyone who helped us in this effort.

2
Foreword
Manish Panchal Shardul Kulkarni
Practice Head – Chemical, Energy & Water Principal – Energy & Water
Tata Strategic Management Group Tata Strategic Management Group
TATA Strategic Management Group (TSMG) has a vast experience in the infrastructure and water
management space and has supported many companies across the water value chain, from
consumers to service providers to infrastructure developers. This vast body of accumulated
knowledge and experience gives us an additional advantage in the development of this report. TSMG
has been associated with the CII-Gujarat Water Summit for the previous two editions as the
Knowledge partner. The report attempts to highlight key business opportunities emanating from the
sector and also presents a four step framework aimed at developing key action pointers for meeting
the long-term goal of water security.
The water sector in India is currently at an interesting phase where growing demand-supply gap has
raised threat of impending water crisis. Per capita availability of water is also being stretched towards
~1,545 m3
/ Capita / Year (2011 estimates), with states like Gujarat suffering from lower water
availability in comparison to national averages. Given the scenario, the Government has started
initiatives on water management, with significant investments in water management initiatives.
Initiatives such as the Narmada project have the ability to create a positive impact on the overall
water scenario in Gujarat. The Government has also undertaken a slew of regulatory measures for the
segment. However, these initiatives need to be complemented by a greater participation from the
private players as well as greater awareness of the key end-users. A long term strategy on water
management that focuses on - increasing the overall water availability for various end-users, reducing
the volumes of wastewater, resolving localized issues concerning water and educating end-users on
the need to adopt water optimization practices is the need of the hour.
We are grateful to CII for collaborating with us in the preparation of this resourceful report. As
always, it was very insightful experience for Tata Strategic team to materialize this report. We hope it
acts as a guiding light for the players in the water management industry in India.

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Table of Contents – Report for CII-Gujarat Water Summit 2014
EXECUTIVE SUMMARY ................................................................................................................... 6
1. INTRODUCTION ....................................................................................................................... 7
2. OVERVIEW OF GUJARAT WATER RESOURCES ............................................................10
2.1 Introduction .............................................................................................................................................11
2.2 Overview of Gujarat’s water resources.....................................................................................................11
2.3 Water Supply and Wastewater management...........................................................................................13
2.4 Government Initiatives.............................................................................................................................15
2.5 Regulatory Framework for Water Management in Gujarat ......................................................................19
3. KEY WATER TECHNOLOGIES.............................................................................................20
3.1 Waste Water Treatment Processes...........................................................................................................22
3.2 Desalination .............................................................................................................................................24
4. DOMESTIC WATER MANAGEMENT.................................................................................28
4.1 Sewage recycling & reuse.........................................................................................................................29
4.2 Rainwater harvesting ...............................................................................................................................30
4.3 Green Buildings ........................................................................................................................................31
4.4 Water Metering and Monitoring ..............................................................................................................31
5. INDUSTRIAL WATER MANAGEMENT .............................................................................33
5.1 Water related risks...................................................................................................................................34
5.2 Issues in water usage in industries ...........................................................................................................35
5.3 Water monitoring framework ..................................................................................................................35
5.4 Zero Liquid Discharge ...............................................................................................................................38

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6. BUSINESS OPPORTUNITIES IN WATER SECTOR.........................................................42
6.1 Segmentation of water market.................................................................................................................43
6.2 Roles of private players in the water segment..........................................................................................44
6.3 Business Opportunities in Gujarat............................................................................................................45
6.4 Upcoming opportunities in water & wastewater treatment.....................................................................46
6.5 Investment opportunities for private players...........................................................................................47
6.6 Profiles of key companies operating in water sector ................................................................................50
7. ACTION POINTS FOR WATER SECTOR...........................................................................53
7.1 Current Approaches to Water Problems...................................................................................................54
7.2 Framework for developing long-term strategy .........................................................................................55
7.3 Brief description of solutions for water sector..........................................................................................58
CONCLUSION....................................................................................................................................64
BIBLIOGRAPHY...............................................................................................................................65
ANNEXURE........................................................................................................................................66
I. Water audit: Forte of CII-Triveni Water Institute...................................................................................66
II. Experience of Tata Strategic in Sustainability (Water / Energy).............................................................70
ABOUT CONFEDERATION OF INDIAN INDUSTRY...............................................................73
ABOUT TATA STRATEGIC ...........................................................................................................73

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List of Figures and Tables
Fig 1.1: Per Capita Water Availability …………………………………………………………………………………………… 8
Fig 1.2: Water availability in India in comparison with other countries ………………………………………… 8
Fig 2.1: Projections for water demand in Gujarat (FY10-50), in BCM …..……………………………………… 11
Fig 2.2: Spatial availability of Surface and Ground water in Gujarat (in MCM) …….…………………….. 12
Fig 2.3: Groundwater development in Gujarat …………………………………………………………………………... 13
Fig 2.4: State-wide Drinking water supply Grid Network …………………………………………………….……… 17
Fig 2.5: Overview of Gulf of Khambat project ………………………………………………………………………….... 18
Fig 3.1: Description of Environmental Discharge Standards ……………………………………………..………… 21
Fig 3.2: Schematic of the Primary Treatment Process ………………………………………………….…………….. 23
Fig 3.3: Schematic of the Secondary Treatment process ……………………………………………………..……… 23
Fig 3.4: Schematic of the Tertiary Treatment process …………..……………………………………………………. 26
Fig 5.1: Overview of water related risks ……………………………………………………..……………………………… 34
Fig 5.2: Factors for achieving sustainable operations …………………………………………………………………. 36
Fig 5.3: Strategic Water Management framework ……………………………………………………………………… 37
Fig 6.1: Segmentation of the Water market ……………………………………………………………………………….. 43
Fig 6.2: Business Model Dimensions for the Water sector …………………..……………………………………… 45
Fig 7.1: Potential solutions for the water sector ……………………………………………………….……………….. 58
Table 2.1: Progress of the Narmada project …………………………………………………………………………….… 16
Table 2.2: Overview of the Regulatory Agencies for Gujarat ……………………………………………………… 19
Table 6.1: Select projects executed in Gujarat …………………………………………………………………………... 46
Table 6.2: Proposed projects for water treatment in Gujarat …………………………………………………..… 46
Table 6.3: Proposed projects for wastewater treatment in Gujarat …………………………………………... 47

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Executive Summary
This CII report on “Securing our water resources”, prepared by Tata Strategic Management
Group, has a holistic view on the current state of domestic and industrial water management
practices, with an overview of the state of water affairs in Gujarat. The key focus of the
report is on identifying a set of solutions that can mitigate the growing water challenges.
These solutions are developed as part of a structured framework aimed at analysing and
resolving the water issues.
Water affects all aspects of our daily lives and the dependence of the country on this
precious resource cannot be overstated. In this context, India needs to gear up for a future
where the current pace of growth of water demand is projected to overshoot the current
available water supply. For states like Gujarat, where the water availability, from natural
sources is lower than the national average, these problems could happen at an earlier date
and could have far greater implications on the growth. The relevant authorities have taken
major steps to ward off a looming water crisis, by developing marquee infrastructure
projects that have changed the nature of water availability in many districts of Gujarat. The
Government is also undertaking a slew of regulatory measures for the water & wastewater
segment.
These efforts need to be complemented by a greater participation from the private players
and also a greater engagement with key end-users like domestic consumers and farming
community. Mechanisms to accelerate private sector participation and drive in newer,
efficient business models require a greater thrust in the coming years. The process for
arriving at measures to meet the water challenges needs to factor in the varied needs of all
the stakeholders; the solutions that arise from such a participatory approach would have a
greater acceptance and hence, a greater chance of meeting the desired objectives.
While the challenges facing the water sector are grave, these are not insurmountable. The
need of the hour is the development of long-term water management strategy and
complemented by a suitable execution plan that ensures sustained efforts, with the
engagement of all the key stakeholders.

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1. Introduction

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The future predictions for the water sector predict a dire scenario where various end-users
will be starved for water. Intra-state water conflicts could intensify, as the blame for water
shortages would be put on the neighbouring states. Unavailability of water could have a
debilitating effect in the future. With this context, it is worthwhile to objectively assess the
water scenario, analyse the approaches being followed, and get a strategic perspective on
water management opportunities.
Water demand is increasing rapidly on account of increasing population, urbanisation,
industrialisation and area under irrigation. The projected water demand for FY14 is ~ 743
BCM (derived from data sources of National Commission on Integrated Water Resources
Development). This is expected to reach ~1,180 BCM by 2050 (agriculture segment
dominates the usage pattern with about 3/4th share). Out of the total annual precipitation
of about 4,000 BCM, about 1,100 BCM of water is utilisable (remaining is primarily for
surface evaporation and flow to sea). Considering this estimate, India currently has
adequate water resources. However, an analysis of the water availability on a per capita
basis indicates that India is moving towards ‘water stressed’ (i.e. <1,545 m3
/ Capita / Year)
scenario. Benchmarking India with other countries also indicates lower water availability
(Fig 1, 2).
Fig 1.1: Per Capita Water Availability in
India
Fig 1.2: Water availability in India
(Comparison with other countries, in cubic
metre)
India also has wide spread regional disparity in water availability and the unevenness of
water demand. While the North Eastern states face incessant rains and frequent floods,
Western states such as Gujarat & Rajasthan receive limited rainfall which is insufficient to
meet the local needs.

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The state of Gujarat has been traditionally water starved with a per capita water availability
of less than 1,200 cum (in comparison, nation average is ~ 1,880 cum). The situation is
worsened by the wide disparity in availability, leading to a number of regions of Gujarat
already classified under “water scarce” zones. The large industrial base is an important cog
in Gujarat’s prosperity, but future growth could be hampered if the water issues are not
resolved, with a long-term perspective.
Thus, effective water resource management is a critical element for ensuring long term
sustainable growth. The current situation of water management is largely focused on
developing large projects to increase water availability. While these measures are an
important tool, the focus needs to expand beyond Government interventions that require
large capital investments and long duration execution periods. A holistic process of
developing and executing solutions is required to tackle the crisis. A structured process
aimed at identifying the issues, developing a long-list of potential solutions, prioritizing the
solutions and developing a structured execution roadmap would enable the goal of achieving
long-term water security in the state.

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2. Overview of Gujarat Water Resources

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2.1 Introduction
Gujarat is a chronically water stressed state, with a per capita water availability ~ 1,137
cubic metre (cum) (National average is ~ 1,820 cum). Despite accounting for ~6% of the
country’s area and ~ 5% of the population, Gujarat has only ~ 2.3% of the total surface
water in India. The water situation in the State is projected to worsen, given the increasing
demands on the water resources. Gujarat is a highly industrialized state, with a large
concentration of water demanding industries such as chemicals, petrochemicals and textiles.
The State is poised to witness major investments in industrial infrastructure, which would
result in a greater demand for water resources. The Government has taken many proactive
steps to tackle these issues and has made substantial progress in alleviating the water
shortages in major parts of the state to a large extent.
2.2 Overview of Gujarat’s water resources
The total utilisable water in the state is ~ 50 BCM; share of surface water is ~38 BCM, while
rest is ground water. Growth in end-user consumption due to rapid urbanisation and large
industrial base is estimated to increase the total water demand in the state to ~ 40 BCM by
2025 and ~ 57 BCM by 2050. The availability of water is not uniformly spread in the State,
but is characterized by a wide spatial distribution of water resources. The per capita water
availability in South and Central Gujarat is 1,880 m3 per annum while regions like North
Gujarat have availabilities of ~ 343 per annum respectively.
Fig 2.1: Projections for water demand in Gujarat (FY10-50), in BCM

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Fig 2.2: Spatial availability of Surface and Ground water in Gujarat (in MCM)
The state has a rainfall of ~ 1,243 mm on an annual basis. This is supplemented by the
availability of surface water and the net annual ground water availability of ~ 15 BCM. The
rainfall in the State also follows the same pattern of variation, with South Gujarat having
average rainfall in the range of 1,100 – 1,200 mm, while Kutch has ~ 400 mm rainfall.
Gujarat has ~ 185 river basins, but the state has only three perennial rivers:
a. Tapi - annual runoff is ~ 6,700 MCM; major storage projects on the river are Ukai (~
8,510 MCM) and Kate Purna (98 MCM)
b. Narmada - annual runoff is ~ 34,000 MCM; major storage projects are Karjan ( ~
630 MCM), Tawa (2,310 MCM) and Barna (540 MCM)
c. Mahi - annual runoff is ~ 4,360 MCM; major storage projects are Mahi Bajaj Sagar
(~ 2,180 MCM) and Kadana (1,540 MCM)
Most of the river basins do not have sufficient recharge through rainfall; hindering their
usage in resolving the water shortages of the regions. The State has a high dependence on
groundwater consumption, driven by the lack of sufficient access to surface water resources.
This exploitation of ground water resources has led to a depletion of the groundwater table
in some of the regions. The annual ground water draft in the State is estimated at ~ 12
BCM. Major use of groundwater resources is in irrigation (~90%), with the rest being used
in domestic and industrial usage. Data provided by the Ministry of Water Resources shows
that irrigation potential created by usage of groundwater resources is ~ 4,350,000 Ha, while

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the Ultimate Irrigation Potential (calculated on basis of amount of dynamic groundwater
recharge by rainwater) is only 2,750,000 Ha
The state’s hydrogeological profile is not conducive for groundwater recharge, as the
percolation of ground water and storage in aquifers is difficult. The long coastline and the
two Gulfs (Gulf of Cambay and Gulf of Kutch), pose the problem of salinity ingress. Surveys
conducted by Central Ground Water Authority have shown alarming statistics, with 31
talukas falling in the over-exploited zone and 12 talukas in the critical zone. The quality of
drinking water is also a major issue, with the Central water resources department identifying
18 districts, where fluoride concentrations in groundwater are above desirable levels.
Fig 2.3: Groundwater development in Gujarat
The Government is taking many steps to remedy this situation with planned water recharge
schemes and there has been a considerable improvement in the groundwater scenario over
the past few years.
2.3 Water Supply and Wastewater management
The supply of water in Class-1 cities of Gujarat is projected at ~ 2,100 Million liters per day
(MLD), amounting to a per capita water supply of 143 liters per day. In Class-II towns, the
net water supply is ~ 285 MLD, amounting to a per capita water availability of ~ 130 liters
Source: Gujarat Water Resources Development Corporation

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per day. The estimated volumes of sewage generation in Gujarat is ~ 1,680 MLD for Class-I
cities, while it is ~ 227 MLD in Class-II towns of the state. Most studies have shown a
marked shortfall between the required and currently available sewage treatment capacities.
In a number of cities, the existing treatment capacity remains underutilized, while a lot of
sewage is discharged without treatment in the same city. While cities like Ahmedabad have
made considerable progress in developing adequate sewage treatment capacity, more work
needs to be done to ensure greater treatment of sewage, before discharging into the
environment.
Now, consider three large cities of Gujarat - Ahmedabad, Surat and Rajkot – for comparison. The
urban local bodies (ULBs) governing the water and wastewater infrastructure in these three cities
have embarked on varying levels of private sector engagement. Ahmedabad and Surat have
~75% water coverage while Rajkot has almost 100% water coverage. However, water
availability hours vary from 2-2.5 hrs in Ahmedabad and Surat while it is just ~0.3 hrs in Rajkot.
Further, the average tariff is around INR 1.5/m3
for Ahmedabad and Surat while it is more than
INR 5/m3
for Rajkot.
Gujarat is an industrialized state with presence of large industries spread over various
regions of the state. Most of these industries are consumers of large volumes of freshwater.
The manufacturing processes result in the production of industrial effluents that need to be
treated, before discharge into the environment. Thus, the rapid industrialization in the State
has created a two-fold problem – the need to provide sufficient volumes of water, interposed
with stringent norms mandating treatment standards and recycling standards. The Pollution
control board has laid down regulations on the quality of the wastewater that can be
discharged into water bodies, factoring both biological and chemical properties of the
effluent.
Many large industries have in-house effluent treatment plants. The GPCB is working with
large industries to ensure increase in wastewater recycle and reuse. Zero-liquid discharge
schemes are being proposed for large industries and for units in some of the Special
Economic Zones / Industrial parks. As assistance to the small scale industries, the
Government has setup ~ 28 Common effluent treatment plants (CETPs), to tackle the issue
of wastewater discharge. Most of the CETPs are managed by the local industrial
associations. Some of the large CETP facilities include the Bharuch Eco-Aqua Infrastructure
Ltd (60 MLD), Palsana Enviro Protection Ltd (100 MLD) in Surat and Vapi Waste and Effluent
Treatment Ltd (70 MLD). While the setup of these CETPs is a useful first step in dealing with
issues of water quality, the performance of many of these CETPs has not yielded the desired
impact.

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2.4 Government Initiatives
The Government has launched many initiatives, aimed at addressing the chronic water
shortages of the state. Studies to ascertain the existing levels of service provision have been
carried out to identify and close the gaps. The ratio of the water capacity was ~55% in
villages and 70% in City area, which has now revised to 100% in villages and 140% in City
area. Efforts aimed at upgrading and installing new infrastructure are accounting for the
projected rise in population and end-user water demands. The new pipelines and storage
capacity additions are being commissioned, considering the projected population after 30
years and the resultant needs of the water infrastructure. Some of the key initiatives have
been highlighted below.
Caselet 1:
Zydus Infrastructure Private Limited has an SEZ, on the Ahmedabad Rajkot Highway,
exclusively for Pharmaceutical companies (Zydus Hospira, Zydus BVS, INTAS, Famy Care,
Oxygen Bio, Thermo fisher, Torrent, Amneal etc). As part of the infrastructure facilities, a
CETP has been provided, that receives effluent from the member units through tankers.
Industries remove suspended solids through primary treatment and enable “ZERO”
discharge, following additional treatment at the CETP. CETP comprises of conventional
physico-chemical treatment, peripherals of MBR process and sludge handling systems
supported by Reverse Osmosis & Multi Effect Evaporator for TDS removal
Caselet 2: Achieving Excellence in Textile Effluent Treatment
Arvind Ltd., have set up textile projects at Khakharia Tappa in the villages of Santej,
Vadsar, Khatrej in Taluka Kalol, District Mehsana, about 15 kms from Ahmedabad. This
complex has been planned with the objective of minimizing water consumption by
recycling almost entire effluent, thus the net drawl of the water from bore wells is limited
to only evaporation losses. Treated effluent is passed through Reverse Osmosis with pre-
treatment and more than 97% of effluent was initially recovered as good quality water.
This plant has been further upgraded and 100% recovery has been achieved. The solid
salt recovery from desalination plant is reused in the textile units. Thus, the sludge is not
sent to landfill site and it has become a 100% recycling plant as well as 100% salt
recycling and recovery plant. For achieving this level of performance, the company has
made investments in a globally patented polymeric Film Evaporation Technology
which reduces the cost of evaporation by a third. This unique technology has brought
down the operating cost heavily, making 100% or zero liquid discharge commercially
viable. This is a demonstrative project of one of its kind and has the potential to really
boost zero liquidity discharge concept in other industries and contribute to water re-
cycling significantly.

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I. Development of State wide Water Supply Grid – The Government has made
significant initiative in developing a potential counter-balance strategy for long term
drought proofing. As part of these measures, the State Government is developing a state-
wide Grid (Narmada Project), aimed at creating a network for inter-basin water transfer
from sustainable surface water resources to water scarce and quality affected areas. The
positive impact of this Grid is expected to result in supply of drinking water to almost
75% population of the State through surface/sub-surface sources. Some of the key
highlights of the project include :
a. Total 291 projects planned under State Wide Water Supply Grid
b. 175 projects, covering 3250 Km of bulk pipelines under Sardar Sarovar Canal based
Water Supply Project
c. 219 projects based on surface/subsurface sources under Rural water supply
programme
d. Average daily transfer of 2,766 MLD
e. Expected positive externalities of reduction in number of tankers and deep tube wells
Table 2.1 : Progress of the Narmada project
Status Villages Towns
Planned 14,865 145
Completed 10937 127
In Progress 2705 11
Sources: WASMO, Gujarat Water Supply and Sewerage Board (GWSSB), Data as on December 2011

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Fig 2.4: State-wide Drinking water supply Grid Network
II. Sujalam Safalam Yojana – Another long-term Government initiative, aimed at
providing water to dry land and dry underground areas is the Sujalam Safalam
Yojana, launched in 2004 to cater to drought prone areas of North and Central
Gujarat, Saurashtra and Kutch at an estimated investment of ~ INR 6200 Crore. The
canal links to 27 rivers of the state spreading over a length of 338 KM and catering to
about 4900 villages of the State, water has flown into 290 KM of the canal
III. Watershed Development Programme - This Programme was launched with the
objective of drought proofing, agriculture growth environment protection and
employment generation. As a part of this programme, the Drought Prone Area
Programme and Integrated Wasteland Development Programme (IWDP) schemes
have been implemented. The Programme has ~ 5,590 projects under execution, for
treatment of 28 lakh hectares in the State. The expenditure incurred on this project is
~ INR 115 Crore (FY10) and ~ INR 170 Crore (FY11).
IV. Gulf of Khambhat Development (Kalpasar) Project - This project is aimed at
developing the world's largest man-made fresh water reservoir. This project would
meet the water needs of various end-user groups, including irrigation, domestic and
industrial water supply. The Project involves the creation of a reservoir by
construction of a 30 km closure dam across the Gulf of Khambhat. The resultant
storage capacity is estimated at ~ 10,000 million cubic metre water inflows of major

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rivers. The benefits of the project are expected to cater to water supply needs of
~10.54 lakh hectares in 39 talukas (across 6 districts, essentially water scarce
regions in Saurashtra and Central Gujarat). Alternate sources of energy like wind and
solar energy, would be used for lifting freshwater from reservoir to canal. The Nodal
agency for the project is the Kalpasar Department, Government of Gujarat
Fig 2.5: Overview of Gulf of Khambat project
V. Desalination Projects
Owing to its long coastline and water scarcity, Gujarat is looking at setting up desalination
plants at several locations along its coastline. Some of the biggest desalination plants are
present in the State, with several other projects in pipeline (Out of the 300 MLD operational
desalination capacity of the country, Gujarat has the highest commissioned capacity of 141
MLD). State government is also considering increasing installed capacity to 300 MLD over
next five years. Jamnagar (100 MLD), Pipavav (100MLD), Dahej & Kutch are the identified
sites for further expansion
In addition to these initiatives, an integrated water resource management approach is being
undertaken in the entire eastern tribal belt from Ambaji to Umergam, using remote sensing
data, to optimize water availability in these difficult terrains. Micro-irrigation is being
encouraged along large tracts of the land, with Green Gujarat Revolution Company acting as
the nodal agency for implementing the micro irrigation scheme in the state. In the last eight
years, ~ 6.8 lakh hectares have been brought under micro irrigation with 4.22 lakh farmers,
adopting this scheme.

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2.5 Regulatory Framework for Water Management in Gujarat
The regulatory overview of the water and sanitation sector in Gujarat is managed by a host
of water bodies set up by the state government. These bodies handle a variety of roles from
provision of water to monitoring water quality to facilitating projects in water and sanitation
sector. A brief profile of some of the organizations (and their associated responsibilities) is
provided below.
Table 2.2 : Overview of the Regulatory Agencies for Gujarat
S.No. Agency Key Responsibility
1 Gujarat Water Supply
and Sewerage Board
Implementing water supply and sewerage schemes for
urban local bodies, operation of some schemes
2 Gujarat State Drinking
Water Company Limited
Bulk transmission and bulk supply of drinking water to
local bodies, GWSSB, and Industrial estates.
3 Sardar Sarovar Narmada
Nigam Ltd
Governing body responsible for the implementation of
the Narmada project canal
4 Gujarat Water Resources
Development Corpn
Concentrate on ground water investigation,
exploration, management & recharge works in Gujarat
5 Gujarat Water Supply
and Sewerage Board
Provide quality water and sanitation services,
implement the Drinking Water Supply and Sanitation
policy and coordinate programmes with Govt. of India
6 Water and Sanitation
Management
Organization
Supply of drinking water for rural areas and assistance
in planning, implementing and maintaining drinking
water supply systems and environmental sanitation
7 Gujarat Pollution Control
Board
Protect the environment and prevent pollution of water
resources in Gujarat
8 Gujarat Water
Infrastructure Ltd
Responsible for bulk water transmission; it purchases
water from Sardar Sarovar Narmada Nigam Limited
and transfers it to GWWSB and urban municipalities
9 Municipal Corporations Provision of retail water supply services for domestic
and industrial purposes in the area of their jurisdiction
10 Gujarat Industrial
Development Corpn
Provision of retail water supply services in industrial
estates owned by GIDC

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3. Key Water Technologies

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The immense pressure on the fresh water resources in the country, due to the growing
water demands a proactive approach aimed at recycling more wastewater and developing
alternate sources of water. Water management in India has comprised of storage, supply
and distribution while ignoring the important aspect of water treatment. Of the domestic
sewage generated in India on a daily basis, only 21.3% gets treated as per CPCB; 22% gets
treated as per Excreta Matters 2012. Rest is dumped into the rivers. Even the treatment of
industrial effluent, in most parts, is still rudimentary and ineffective in removing all harmful
contaminants.
Central Pollution Control Board (CPCB) with Ministry of Environment and Forests (MoEF) is
the key apex body to draft regulations for water pollution and monitor their implementation
in the country. State Pollution Control Boards (SPCBs) assist CPCB in its goal of
implementation. Although, the regulations have been in place for some time now, their
implementation has not been a top priority for the Government. However, with increasing
water scarcity and mounting public pressure, there is a growing realization among all
stakeholders – Government, Society, Agriculture and Industry that fresh water resources are
limited and precious. Thus, sustainable usage, protection and reuse of these resources are
of paramount importance today. Treatment of the discharge in the form of untreated
domestic wastewater and industrial effluents is a must.
Fig 3.1: Description of Environmental Discharge Standards
Wastewater treatment is an evolving sector in India with several new technologies gaining
prominence. The focus of these new technologies extends beyond just meeting the bare
minimum environmental discharge norms to providing an alternate source of water to meet
the ever increasing demand.

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3.1 Waste Water Treatment Processes
Wastewater treatment is closely related to the standards and/or expectations set for the
effluent quality. Wastewater treatment processes are designed to achieve improvements in
the quality of the wastewater. The various treatment processes may reduce:
1. Suspended solids (physical particles that can clog rivers or channels as they settle
under gravity)
2. Biodegradable organics (e.g. BOD) which can serve as “food” for microorganisms in
the receiving body. Microorganisms combine this matter with oxygen from the water to
yield the energy they need to thrive and multiply; unfortunately, this oxygen is also
needed by fish and other organisms in the river. Heavy organic pollution can lead to
“dead zones” where no fish can be found; sudden releases of heavy organic loads can
lead to dramatic “fishkills”.
3. Pathogenic bacteria and other disease causing organisms. These are most relevant
where the receiving water is used for drinking, or where people would otherwise be in
close contact with it;
4. Nutrients, including nitrates and phosphates. These nutrients can lead to high
concentrations of unwanted algae, which can themselves become heavy loads of
biodegradable organic load Treatment processes may also neutralize or removing
industrial wastes and toxic chemicals. This type of treatment should ideally take place
at the industrial plant itself, before discharge of their effluent in municipal sewers or
water courses.
Widely used terminology refers to three levels of wastewater treatment: primary, secondary,
and tertiary (or advanced).
Primary (mechanical) treatment is designed to remove gross, suspended and floating
solids from raw sewage. It includes screening to trap solid objects and sedimentation by
gravity to remove suspended solids. This level is sometimes referred to as “mechanical
treatment”, although chemicals are often used to accelerate the sedimentation process.
Primary treatment can reduce the BOD of the incoming wastewater by 20-30% and the total
suspended solids by some 50-60%. Primary treatment is usually the first stage of
wastewater treatment. Many advanced wastewater treatment plants in industrialized
countries have started with primary treatment, and have then added other treatment stages
as wastewater load has grown, as the need for treatment has increased, and as resources
have become available.

23
Diagram 3.2: Schematic of the Primary Treatment Process
Secondary (biological) treatment removes the dissolved organic matter that escapes
primary treatment. This is achieved by microbes consuming the organic matter as food, and
converting it to carbon dioxide, water, and energy for their own growth and reproduction.
The biological process is then followed by additional settling tanks (“secondary
sedimentation", see photo) to remove more of the suspended solids. About 85% of the
suspended solids and BOD can be removed by a well running plant with secondary
treatment. Secondary treatment technologies include the basic activated sludge process, the
variants of pond and constructed wetland systems, trickling filters and other forms of
treatment which use biological activity to break down organic matter.
Diagram 2.3: Schematic of the Secondary Treatment process
Disinfection, typically with chlorine, can be the final step before discharge of the effluent.
However, some environmental authorities are concerned that chlorine residuals in the
effluent can be a problem in their own right, and have moved away from this process.
Disinfection is frequently built into treatment plant design, but not effectively practiced,
because of the high cost of chlorine, or the reduced effectiveness of ultraviolet radiation
where the water is not sufficiently clear or free of particles.
(Source:http://water.worldbank.org/shw-resource-guide/infrastructure/menu-technical-
options/wastewater-treatment)

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(Source:http://water.worldbank.org/shw-resource-guide/infrastructure/menu-technical-
options/wastewater-treatment)
3.1.3 Advanced/Tertiary treatment processes
Tertiary wastewater treatment is required to remove specific wastewater constituents like
nitrogen, phosphorus, heavy metals and dissolved solids. These processes results in high
quality reclaimed water. The principal advanced wastewater treatment processes are
mentioned below:
a. Membrane Processes: Membrane processes use artificial membranes with pressure as
an operating force to separate impurities from wastewater. The classification of membrane
systems is on the basis of the size of particles rejected by the membrane. Microfiltration and
ultra-filtration have the ability to remove biological contaminants (e.g., bacteria and viruses),
and to reduce fouling on downstream reverse osmosis membranes. Nano-filtration or reverse
osmosis systems are needed where the removal of colloidal and/or dissolved materials is
required.
b. Membrane bioreactor (MBR): This is formed by the combination of a membrane
process like microfiltration or ultra-filtration with a suspended growth biologically active
environment. The membranes can be immersed directly into the aeration tanks, or the
mixed liquor can be pumped to external pressure-driven membrane units. Higher-pressure
NF (Nano-Filtration) and RO (Reverse Osmosis) systems are used to remove dissolved
organic and inorganic compounds. The smaller pore size (lower molecular weight) results in
higher quality product water, which may meet primary and secondary drinking water
standards.
c. Carbon Adsorption: Carbon adsorption can reduce the levels of synthetic organic
chemicals in secondary effluent by 75 to 85 percent. The basic mechanism of removal is by
adsorption of the organic compounds onto carbon. Carbon adsorption treatment removes
several metal ions, particularly cadmium, hexavalent chromium, silver, and selenium.
Activated carbon is used to remove uncharged species, such as arsenic and antimony.
d. Upcoming technologies: A few upcoming technologies in this sector are use of
nanotechnology/ nano-membranes, Phosphorous recovery from wastewater, Forward
Osmosis and Ultrasonic Sludge Disintegration.

25
Fig 3.3: Schematic of the Tertiary Treatment process
Source: Tata Strategic Analysis, Water Technology Documents
3.2 Desalination
Global freshwater resources amount for ~ 3% of total water resources with the balance
97% accounted for by seawater. Increasing water demand has led to pursuit for additional
sources of water. Unfortunately, the salinity levels of the seawater (ppm > 20,000) make
them unfit for any domestic, industrial or agricultural consumption. To make this water
source suitable for usage, it needs to undergo a processing. This would mean looking at an
affordable technology to convert the vast resource of sea water. This form of conversion of
saline water source to usable water resources is called desalination.
The desalination process effectively constitutes separation of saline (and in some cases
brackish water) into pure water and concentrated waste solution (brine). This process of
separation is achieved either through thermal solutions (Multi-Stage Flash Distillation, Multi-
Effect Desalination) or through membrane separation (Reverse Osmosis).
Overview of Desalination Technologies
3.2.1 Multi-Stage Flash Desalination
This is a thermal desalination process using multiple boiling chambers kept at different
atmospheric pressures. Saltwater enters the system and is boiled and evaporated in each
chamber. It works on the basic principle of evaporation of water. The seawater is heated in
a container and then transferred to a cell, held at lower pressure. This causes the seawater
to “flash”, i.e. a portion of it evaporates and the remaining heated seawater is transferred to
the next cell for the process to continue. The steam generated in each cell is condensed via
heat exchangers and the pure condensate is collected for usage as water source, while the
residual brine is disposed of.
This is one of the most popular desalination technologies in the world with a large number of
installations particularly in the Middle East.

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3.2.2 Multiple-Effect Desalination (MED)
This is again a thermal desalination process. Evaporation occurs on the external surface of a
tube bundle which is heated by motive steam condensing inside the tubes. Vapour produced
in one effect is then used as motive steam in the following effect, which operates at lower
pressure and, therefore, at a lower boiling temperature. Such a heat integration
arrangement allows the attainment of very high energy efficiency for the process, resulting
in a performance ratio up to 10–12 kg of distillate per kg of motive steam fed into the first
effect.
The two prevalent types of MED are:
1. MED with thermal vapour compression
2. MED with mechanical vapour compression
3.2.3 Reverse Osmosis
This is a commonly used membrane based technology for desalination. This technology uses
the principle of osmosis to achieve separation of saline/ brackish water into good quality
water and brine. It involves the transmission of input water through a semi-permeable
membrane, under high pressure (~10-25 bars for brackish water and ~50-80 bars for
seawater), to separate good quality water and brine. The components required include an
intake system, pre-treatment systems (filtration, anti-scaling agent wand sterilization),
pumping system and semi-permeable membrane.
3.2.4 Upcoming Technologies
The use of solar energy for desalination is fast gaining importance as a means of replacing
the costlier sources of thermal energy. The solar energy can be used for desalination of
seawater through the natural process of evaporation. To hasten the process, the sills holding
the seawater are kept at lower pressure. The solar energy captured through photo-voltaic
arrays can also be converted to electrical or mechanical energy to be used for reverse
osmosis process. A few installations are present in Australia. Waste heat recovery, especially
in power plants, is another means of desalination. Heat exchangers, built in during the initial
design of the plant, are used to provide heat for thermal desalination. A number of
upcoming power plants along coastal areas are adopting this technology to augment their
water needs.

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Case Study 1: Desalination plant at Reliance Industries
Project Overview
Plant Output 96 Million Liters per Day (4 units of 24 MLD)
Technology Multiple-Effect Distillation
Project Cost (Estimated) ~ INR 700 Cr
Location Jamnagar, Gujarat
Project Owner Reliance Industries Ltd
EPC Company IDE Technologies
The oil refinery at Reliance, Jamnagar has a 96 MLD (million liters per day) desalination plant
consisting of 4 units of 24 MLD plants. It is based on Multiple-Effect desalination technology.
The total project cost is ~INR 700 Cr. and took 3 years for construction (operational since
2007). The feed water quality is ~40,000 ppm and the output water is required to contain
total dissolved solids of less than 10 ppm.
Case Study 2: Desalination plant at Tata Power, Mundra
Project Overview
Plant Output 25 MLD (2 units)
Technology Reverse Osmosis
Project Cost (Estimated) NA
Location Mundra, Gujarat
Project Owner Coastal Gujarat Power Ltd
EPC Company Aquatech International
The Ultra Mega Power Plant (UMPP) at Tata Power, Mundra plant has a 25 MLD desalination
plant consisting of 2 units of 12.5 MLD plant. It is based on reverse osmosis technology. Two
pre-treatment stages involved are two stage sand filtration and dual media filtration. The
estimated time for construction is ~2 years. It is currently under construction. The feed
water quality is ~40,000 ppm and the output water is required to contain total dissolved
solids of less than 10 ppm. This project is being executed with Aquatech International
Corporation being the EPC contractor and Energy Recovery Inc., Hydranautics & Sulzer
pumps being the equipment suppliers

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4. Domestic Water Management

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The current water situation in India presents a gloomy picture due to depleting sources of
fresh water being consumed by all three end users – agriculture, industry and domestic. The
need to find solutions for the current and future water woes requires long-term planning to
undertake measures that can reduce water footprint while augmenting water resources.
4.1 Sewage recycling & reuse
About 80 per cent of household water in India is released as wastewater. As India’s per
capita water consumption grows rapidly, the concurrent sewage problem poses both a
signiﬁcant cost and an opportunity to water authorities (WAs). On the one hand, untreated
sewage is the single most important contributor to surface and groundwater pollution in the
country & on the other hand, the large volume of sewage offers tremendous potential for
WAs to recycle water within their cities and reduce their reliance on bulk freshwater sources.
While freshwater is needed for human consumption, sewage can be treated to the minimum
quality required for its subsequent use and safely reused for many non-potable industrial
and agricultural uses.
A variety of technologies can be used for treating waste water. A few of them have been
highlighted as below:
Biological processes: These are basic level technologies which aim to develop waste
stabilization ponds (WSP) and duckweed ponds to clean the water through biological
processes. However, owing to requirement of land, this method is more suited for rural
areas
Activated sludge process: The activated sludge process uses microorganisms to feed on
organic contaminants in wastewater, producing a high quality effluent. The basic principle is
that as the microorganisms grow, they form particles that clump together. These particles
are allowed to settle to the bottom of the tank leaving a relatively clear liquid free of organic
material and suspended solids. The advantages of this process includes low construction
cost and relatively small land requirements.
Sequential batch reactor: The Sequencing Batch Reactor (SBR) is an activated sludge
process designed to operate under non-steady state conditions. An SBR operates in a true
batch mode with aeration and sludge settlement both occurring in the same tank. The major
differences between SBR and conventional continuous-flow, activated sludge system is that
the SBR tank carries out the functions of equalization aeration and sedimentation in a time
sequence rather than in the conventional space sequence of continuous-flow systems. In
addition, the SBR system can be designed with the ability to treat a wide range of influent
volumes whereas the continuous system is based upon a fixed influent flowrate. Thus, there
is a degree of flexibility associated with working in a time rather than in a space sequence.

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4.2 Rainwater harvesting
Rainwater harvesting is a means of constructive storage of the water that falls down as
rainfall, instead of wasting it as runoff. Rainfall in India is concentrated in a 3-4 month
period and this is an effective means of tapping this source. This is an important and cheap
source of water storage and can be used either for direct consumption or as means of
recharging over-exploited groundwater resources. It also has the additional benefits of
topsoil loss prevention. This process has been in vogue for many years in India but is now
regaining attention as a cost effective means of water enhancement.
Rainwater harvesting is primarily of two types:
Roof top rainwater harvesting – This harvests water from rooftops of buildings. Water is
collected and stored in surface or sub-surface storage spaces.
Land based rainwater harvesting – Water that collected on land surface is harvested
and typically stored in sub-surface storage areas.
The components of a typical rainwater harvesting system include the following:
1. Catchment area – This refers to the surface where rainwater is collected. It is usually
ensured that rainwater flows down to single outlet point of the catchment area.
2. Conveyance system – Water from the catchment area flows down through a conveyance
system of pipelines. This typically consists of a “first rain separator” apparatus to remove the
first flow of water that is usually contaminated.
3. Filtration unit - The rainwater is then passed through a filtration unit to remove
suspended pollutants. These filtration systems usually consist of physical treatment (layers
of gravel and sand that can remove pollutants) and chemical treatment (chlorine dosing) to
make the water fit for consumption.
4. Storage – The water is passed into surface or sub-surface storage systems. These storage
tanks are made of materials like stainless steel, polyethylene, metal etc.
5. Recharge – Excess water is used to recharge the groundwater sources through natural
percolation or artificial injection mechanisms.
Caselet 1 : Rainwater harvesting by Coca-Cola, India
Coca-Cola has installed rain water harvesting systems at multiple locations in India. It
started with its first plant in Lucknow with the ability to recharge 300,000 litres of ground
water annually. In 2009, it commenced a 2.4 Cr litres of rain water harvesting project in
Cochin. Coca-Cola’s efforts in India have also been recognized by the industry. It was
awarded 2008 Golden Peacock Global Award for corporate social responsibility in 2008.

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4.3 Green Buildings
Green Buildings are buildings designed to utilize less resources like energy, water etc. while
reducing the building impacts on human health and environment. This is achieved through a
combination of better design, improved construction materials, and reuse of waste
generated. While a host of factors are considered before declaring a building “green”, water
management plays a significant role in achieving this green status.
The Leadership in Energy and Environmental Design (LEED-INDIA) is a Green Building
Rating System used as a nationally accepted benchmark for the design, construction and
operation of high performance green buildings. Currently, ~23 buildings are LEED certified
green buildings in India.
To achieve LEED certification, the water management systems in a building meet the self-
sufficiency aims (to reduce need on external supply of water) while maintaining acceptable
levels of water quality. The Green buildings aim to consume 50% less potable water in
comparison to normal constructions. The buildings also try to meet ~ 40% of water
requirements through rainwater harvesting and collection of storm-water runoff efforts. The
water consumption in the building is reduced through utilization of water efficient devices.
The grey water generated in the building is treated and reused for non-potable purposes like
gardening etc.
4.4 Water Metering and Monitoring
Automated Water Management System
Water management system faces multiple challenges in terms of water transportation,
minimizing losses, reduction in energy consumption and improvement in treatment quality
and efficacy. Automated systems are a way to effectively cater to these challenges. An
efficient automation system ensures optimum utilization of water improving the efficiency of
the water supply system and its equipment. It helps in preventive maintenance and provides
the accurate database for plant optimization. Automated water management system using
Supervisory Control and Data Acquisition (SCADA) solutions significantly helps in improving
the situation. These systems operate based on real time data communicated from remote
sites to control centres. Key objectives of the automated water management system would
be-
Caselet 2 : Green Building by Godrej, India
CII-Sohrabji Godrej Green Business Centre at Hyderabad has achieved Platinum Rating
for Green Building status. The water efficient devices (like waterless urinals, ultra-low
and low-flow flush fixtures) installed in the building have helped reduce water
consumption by ~ 35%. The wastewater generated in the building (gray water and black
water) is treated using a process called Root Zone Treatment. This treatment process
consists of a clay lined pit with Canna Indica species grown on the gravel/sand mixture.
This treatment process is a combination of mechanical filtration (wastewater seeping
through layers of soil), chemical precipitation and biological treatment. The treated water
is used for landscaping purposes.

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• To Monitor water quality / quantity
• To meter to know the losses occurred during treatment and transport process
• To record and analyze sudden changes in flow rates for new leaks and bursts
• To reduce the actual response time to detect problem location and provide solution
Study shows the use of SCADA system along with dynamic pressure control tools would -
• Reduce water leakages in the system
• Reduce number of pipe bursts (up to 50%)
• Increase reliability of water supply
• Reduce energy consumption for operation
Thus automated system helps enhance performance, efficiency and reliability of the water
management system.
CII Triveni Water Institute has been offering water audit services to various industry
establishments and has performed such audits in more than 80 establishments in India. An
overview of the water audit process for industries and buildings and a snapshot of CII
Triveni Water Institute’s experience in this space is provided in the Annexure.

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5. Industrial Water Management

34
5.1 Water related risks
The industries are dependent on usage of water at various points in the value chain. The
influence of water on industrial production extends beyond the manufacturing site, as the
availability of water can have an impact on the raw material availability and also on the
usage of the products. The risks related to water availability for an industry are critical not
only with regard to the volume but also with respect to the quality of water supply. Thus,
there is a need for a holistic and a comprehensive approach to water management, that not
only considers the internal processes of a company but also looks at the supply chain of the
company, the location of the manufacturing units and hence the impact with the local
communities, and the ecosystems impacted by the operations of an industry.
The water related risks that companies need to account for can be listed along three
dimensions – physical, regulatory and reputational.
a. Physical risk – Risk of unavailability of required volume and / or quality of water
b. Regulatory risk – Risk of change in regulations with respect to water withdrawal and
wastewater discharge
c. Reputational risk – Risk of negative perceptions among the local communities with
respect to water usage pattern
These risks manifest themselves not just in the operations of a company, but also in the
supply chain and the watershed where the company’s operations are located. The traditional
mindset of focusing on the risks within the plant boundaries is undergoing a drastic change,
as companies become more aware of the potential issues that might arise due to water
related risks along other parts of the water value chain. Thus, a comprehensive water
management strategy must encompass direct & indirect water usage across various risk
factors.
Fig 5.1: Overview of water related risks
The above pictorial representation depicts the type of risks prevalent in the water spectrum.
While some of the risks are under the control of the company, a risk mitigation strategy for
other types of risk would involve a broad based stakeholder engagement process that would

35
require collaborative efforts with other water users in the water shed, with regulatory
agencies and with other industry participants.
5.2 Issues in water usage in industries
Some of the key issues plaguing current water consumption practices in industries include:
1. Current installations of water meters capture only volume of water consumed at plant
level; water meters are not present at Process level and do not capture parameters
like quality
2. Current water monitoring is done manually at fixed time interval, by a staff member
3. Water reporting is not done daily and is dependent on the reporting accuracy of the
person in-charge
4. Replacement of old equipment (like pipelines) that could be leading to water
leakages / wastages is not complete
5. Water withdrawal in villages / colonies is not regulated & often not metered;
wastages in water are occurring due to inefficient practices
6. A direct channel of communication of need to conserve water and follow efficient
practices is minimal
5.3 Water monitoring framework
The need of the hour is to develop a long-term approach that could safeguard industries
against potential water availability risks and associated impact on business. For this,
industries need to adopt a structured five step process for effective water management.
1. Identification of regions of interest -
a. Demarcation of areas of interest for each of the plant sites, to carry out the
exercise
b. Define the temporal and spatial boundaries for the water foot printing
exercise
c. Facilitate “Initiation Workshops” to create framework for joint working
mechanism
2. Base-lining of Water & Wastewater Footprint – Industries should conduct a
detailed Water Audit report to create an As-Is Water Balance diagram, for all
processes. The aim of the exercise should be to Overview identify the water use in
the value chain (volume consumption, physical locality of the water use). Water
usage needs to be mapped along “Operational Water Footprint” (direct water use by
the producer – for producing, manufacturing or for supporting activities) and
“Supply-chain water footprint” (indirect water use in the producer’s supply chain)

36
3. Risk profiling / Sustainability Assessment – A risk map to capture various
scenarios of water related risks need to be developed, factoring projections for long-
term water availability, potential price fluctuations and seasonal variations in water
availability. These risks must incorporate hidden costs of water – energy costs for
water usage, revenue losses from water shortage etc. Key issues need to be
prioritized (based on criticality to operations / business) and the water footprint
reduction goals (short / medium / long-term) need to be identified. Being aware of
and understanding the water challenges allows businesses to make better
management decisions and provides the platform to engage with a broader set of
stakeholders to address issues outside their direct sphere
Fig 5.2: Factors for achieving sustainable operations
4. Response Formulation – A comprehensive response plan to mitigate water related
risks need to be developed along two dimensions - reduction in water consumption
at plant level and augmentation of water sources. A “Stakeholder Management
Program” needs to be developed to counter the perception challenges of water
consumption; this would involve development of a communication strategy to handle
local population and engagement with environmental agencies

37
5. Integration into Long-term planning - Water management needs to become an
integral factor in planning of future strategic initiatives, e.g.
a. Selection of processes / technology
b. Realignment of supply chain
c. Choice of product mix & design
d. Selection of future locations for operation
These five steps have been captured in the Strategic Water Management framework
(developed by Tata Strategic)
Fig 5.3: Strategic Water Management framework
Source: Water Footprint Network, Analysis by Tata Strategic
This “Strategic Water Management Framework” is a useful tool for industries,
particularly large water consumers, to safeguard against future water risks. Regions
like Kutch are gaining prominence as upcoming industrial belts; the water needs of
industries like power, cement and textiles are significant. A swing in water availability
due to poor monsoons can have a cascading effect on water situation, with
industries facing the brunt of the ensuing shortages. Adopting the above mentioned
measures enables the industries to develop a holistic hedging mechanism against
such high-impact situations.

38
5.4 Zero Liquid Discharge
A Zero Liquid Discharge facility (ZLD) is an industrial plant without discharge of any waste
water. It implies the use of the entire water withdrawn from the water source (often fresh
water) through multiple cycles of treatment and reuse. ZLD status is normally reached by
strong wastewater recovery through separation by evaporation in evaporators, crystallizers
and recovery of the condensate generated. The condensate generated in this case is of high
purity and can be used for practically all purposes. Another way to achieve ZLD is to use
high technology reverse osmosis systems and then using a few tertiary treatment methods
to remove all dissolved solids and other harmful metallic impurities. The water recovered
from this process is not of high purity but fit to be used for several purposes like
Horticulture. One thing to note here is although the ZLD plants do not have any liquid
discharge, they do produce solid waste in form of sludge cakes which are dumped in the
landfills.
ZLD is generally required in plants where discharge is impossible (due to regulatory norms)
or expensive or where a guaranteed water supply is required. In such plants, waste
minimization and valuable raw material recovery from the effluent is must. Though ZLD is
quite expensive, India is starting to adopt this technology in a few plants, particularly textile,
chemicals, power and metals.
Case Study 5: Waste Water Management at Reliance Jamnagar Export
Refinery Project
Jamnagar Refinery with a capacity of 1,20,0000 barrels per stream per day, has given
the contract for water treatment plant (13 x 388 m3/h demineralisation plant and 3 x
388 m3/h condensate polishing unit) to Ion Exchange India, and the effluent treatment
plant to Ion Exchange Waterleau. Waste water treatment is carried out in a dedicated
state-of-art completely automated & PLC operated effluent treatment plant (ETP)
supplied by Ion Exchange Waterleau. The effluent treatment area is designed to contain
and treat all internal process/utility waste water and storm/firewater, with the objective
of zero discharge from the new refinery complex. The scope of treatment also includes
three by-product streams generated during the treatment of refinery waste water -
skimmed or slops oils; oily sludge and biological sludge.
• Skimmed oil is chemical and heat treated, with recovered oils transferred back to
the refinery for reprocessing
• Oily sludge is thickened and then transferred back to the delayed unit for
reprocessing
• Biological sludge is thickened, stabilised, dewatered and disposed off to landfill
The treated water is recycled back to the high total dissolved solids treatment train or
guard tanks, as required

39
Case Study 1: ZLD implementation at JSPL
Jindal Steel and Power Ltd has attained ZLD status through a host of water management
measures. Following are a few water management strategies adopted.
Case Study 2: ZLD implementation at Lanxess complex, Nagda
A thermal zero liquid discharge wastewater treatment Plant is being built with assistance
of GE Water to treat 260 cubic meters per day of wastewater, generated by existing
chemical plants at the complex. The treated water will be reused for boiler feedwater
make-up in power generation.
Case Study 3: ZLD implementation at Chemplast Sanmar
Chemplast Sanmar, a leading Indian chemicals company has installed Zero Liquid
Discharge (ZLD) facilities across all its manufacturing units. These plants completely
recycle and reuse liquid effluents and ensure that no treated effluent from the plant
operations will be discharged on to the land or into the sea. The ZLD initiative and its
water policies have won awards for Chemplast
Case Study 4: ZLD implementation at Posco
Posco has the distinction of being the first steel mill project in world to use ZLD and
Electro Dialysis Reversal (EDR) technology for its cold rolling mill in Maharashtra. Entire
ZLD implementation, including operator training during installation and commissioning,
has been done by GE. The ZLD wastewater treatment system includes two EDR trains for
water reclamation. The ZLD system address water availability challenges by drastically
decreasing the water intake and has helped POSCO easily comply with the local
government regulations for wastewater discharge.

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Development of a breakthrough technology for ZLD - Polymeric Film Evaporation
Technology
Industrial water consumption causes a lot of pollutants but the treatment is very costly and
complex. Currently, industry recycles water by 70% to 80%. However, balance 20% - 30%
water, which is highly polluted and concentrated, is further more difficult and costly to
recycle. Industry is eager to treat this residual effluent but an enabling technology that is
affordable is not easily available. But scarcity of this resource and environmental pressures
are pressing the scientists and researchers to find out an affordable solution, as this 20 to 30
% balance effluent treatment is required to attain Zero Liquid Discharge. Key road blocks for
achieving ZLD are:
1. Most of prevailing membrane technologies cannot treat this residual effluent, due to
technical limitations.
2. This water is highly concentrated and hence causes corrosion, scaling and many more
challenges. Treatment of this requires high end metallurgy for the recycling
equipment, which increase the capital costs. In many instances, stake holders employ
low end material to reduce the capital costs but this reduces plant life and leads to
further investments for replacements
3. The prevailing technologies are MEE, MSF, etc. i.e. thermal desalination. Availability of
these systems is very low due to high choking rates, as these systems cannot handle
high levels of solids and the scale formation.
4. Operating costs of prevailing systems need to reduce by half (currently, significant
consumption of power) to increase adoption, in addition to resolving problems of
capital cost, reliability and availability issues.
A solution to this is the Polymeric Film Evaporation Technology that has evolved after about
a decade of research and development work, supported by many pilot trials in Finland and
Japan. This technology eliminates high-end metallurgy needs for heat exchangers and instead
employs a bunch of plastic bags, made out of special polymeric film. The patented profile of
this bag (heat exchanger) is also manufactured with the help of a worldwide patented profile
welding machine (custom made for the purpose!). The system is very simple, easy to operate
and have extremely low life cycle cost.

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A normal Polymeric Film is not conducive of heat, but research efforts have evolved a reduced
thickness of the base material (50 micron) polymeric film, having heat conductivity equivalent to
1 mm thick SS tube. This material research led to an innovative idea of making a heat
exchanger out of this. An overview of the operation of the polymeric bag is provided below:
• Vapor inside the bag is maintained at 210 mbar and 61 Deg. C temperature
• Vertically hanged bag also enables the steam to condense at the bottom of the bag for
easy collection
• The property of Polymeric film material enables effluent to flow on outer surface of bag
from top to bottom, in close contact with the bag, which is carrying steam inside
(creating the unique heat exchanger)
Commercial application
By now, there are more than 40 installations and more coming up in various kinds of industries
like metal, textile, tanneries, pharmaceutical, electronics and many Common Effluent Treatment
Plants. The plants are available in standard capacity of 50 KLD to 500 KLD. The performance of
this system and the operating cost are demonstrated in each of above segments commercially.
This technology is now getting matured with standardization and automation after six years of
commercial experience. The life cycle cost reliability and resultant affordability of this
technology will go a long way to enable industries and other sectors to recycle water up to the
last drop in an affordable way. This is truly a “Zero Liquid Discharge enabling
technology.

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6. Business Opportunities in Water Sector

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6.1 Segmentation of water market
The water sector can be segmented along two dimensions – water value chain and end-user
segments. The water value chain spans the entire dimensions from water extraction to water
recycle and reuse. The key components of water value chain include:
a. Water Extraction – Water supply projects from surface or ground water
b. Water Treatment plants to ensure desired quality of water for further use
c. Water Supply & Distribution – pipeline network to ensure transmission of water to
the consumption points of water
d. Wastewater collection network – to collect the wastewater generated from the
consumption points
e. Wastewater Treatment / recycle – treatment of the sewage / effluent to ensure
desired quality for discharge or reuse
Some of the other segments include projects for efficient usage of water (rainwater
harvesting, drip irrigation etc.). The three end-user categories for water are domestic /
municipal, industrial users and agricultural users. A segmentation of the water market, by
value-chain and end-user is provided below.
Fig 6.1: Segmentation of the Water market

44
6.2 Roles of private players in the water segment
Private players can operate along various segments in the water chain, via different business
models. A brief description of the various roles for water players is:
1. Project Developers – Players in this segment are involved in the funding and
development of a water infrastructure project. The financial burden and the risk of
the projects are handled by these players. While complete private participation is
possible in the industrial segment, PPP (public-private-participation) models are being
used for Government projects to rope in private players as developers. The PPP
projects are being conceived to attract the technological, financial and management
skills of private players
2. EPC / turnkey projects – This is the most favoured route for private participation,
with a large number of contractors operating in this space. The success in this
business model depends on project management ability and engineering design
capability (for complex projects)
3. Technology / Equipment supply – A number of private companies operate in the
water & wastewater treatment space, through supply of various equipment E.g.
Membranes supply, water treatment chemicals etc. The ability for high-end
technological solutions that provide effective treatment, at lower costs is a significant
value add for a private player
4. Operations and Maintenance - The water and wastewater management services
market is characterized by players offering specialized services in management of
water & wastewater network. Some of the upcoming models in the O&M space
include Annual maintenance contract and comprehensive operations contract (where
the private company is contractually obliged to meet agreed service level standards)
The industrial water and wastewater segment is poised to show a significant growth in
coming years, as the rising demand for water is coupled with the need to conserve and
recycle water in the industrial locations. The growing need for enhanced recycling and zero
liquid discharge solutions will create opportunities for various private players, operating
under various business models. The foreign players, with their latest technology offerings,
are entering Indian market in large numbers. These companies are looking at tie-ups with
local players to enable them to establish a base and tap the large market.
To expand the scope of their offerings, most of the private players have branched out into
different segments in the value chain to enable them to become a “one-stop” solution
provider. The water sector in India (and Gujarat in particular) is evolving, leading to growing
changes in the industry structure, market segments and revenue streams. Emerging
technologies and regulations are also contributing to newer business models in the sector. A
successful foray and growth in the water sector requires a balancing of the growth
aspirations with the nuances of the market. This requires an evaluation along various
business dimensions, to choose the path for operation in the market.

45
Fig 6.2: Business Model Dimensions for the Water sector
6.3 Business Opportunities in Gujarat
Gujarat has been actively pursuing the stated goal of long-term water security. As a past of
these efforts, the State has identified and is actively pursuing projects in various segments
of the water sector. Given the booming economy of the state and its position as one of
India’s leading destination for investments, the scope for water & wastewater sector projects
is poised to attain a high growth trajectory in the coming years. The state has actively
pursued private sector participation, via the PPP route and has setup a nodal agency,
Gujarat Infrastructure Development Board, for the development of PPP projects in the State.
Various proactive measures adopted and encouraged by the Gujarat Government are
creating opportunities for private players along various parts of the water value chain. Some
of the areas in the water sector that are attracting the attention of the private sector
include:
a. Water and Waste Water Treatment Plants for Municipal and Industrial Water
b. Water & Wastewater collection network
c. Technologies / equipment for water efficiency e.g. micro-irrigation
d. Rainwater harvesting

46
Table 6.1: Select projects executed in Gujarat
Project Name Location
Capacity augmentation to 100 MLD Ahmedabad
45 MLD Sewerage
Treatment Plant on BOOT basis
Rajkot
Improvement of water supply and sewerage system Bharuch
O&M of water treatment plants, pumping stations and OHT Jamnagar
Construction of 66 MLD capacity sewage capacity at Dindoli Surat
Construction of 56 MLD capacity sewage pumping station at
Magob and 9 MLD STP at Sarthana
Surat
Activate Sludge Treatment based STPs at Madhapure (45 MLD)
and Rajya (51 MLD)
Rajkot
6.4 Upcoming opportunities in water & wastewater treatment
Significant opportunities in water treatment and processing are expected to come up in the
forthcoming years. A snapshot of select opportunities includes:
Table 6.2: Proposed projects for water treatment in Gujarat
Opportunity Location
Total augmentation capacity of 225 MLDin Jaspur and Raska
WTPs
Ahmedabad
Total 100 MLD planned additional WTP capacity Vadodara
Soalr plant at Kotapur Ahmedabad
90 MLD WTP planned under EPC Surat
The Government has initiated the development of wastewater recycling projects, as Gujarat
Government is looking towards investments in water treatment technologies to meet its
rising needs. The State government has signed MoUs for setting up of waste water recycling
plants in five major cities -Gandhinagar, Ahmedabad, Vadodara, Bharuch and Surat at the
cost of INR 800 Cr. With estimated reuse and recycle potential of 50% of total municipal
sewerage generated, and increase in actual reuse and recycling from 10% in 2015 to 50% in
2050, potential for creating additional supply of water is ~4,300 MLD by 2050. Gujarat has
more than 60 towns with effluent generation levels above 20 MLD (opportunities for Sewage
treatment plants). Large investment opportunities for infrastructure development of sewage
are present, with proposed investments of ~Rs. 800 Cr in municipalities. A snapshot of some
of the planned projects is provided below.

47
Table 6.3: Proposed projects for wastewater treatment in Gujarat
6.5 Investment opportunities for private players
1. Bulk Water Transmission Projects - The project aims to provide water supply up
to farthest areas under State wide Water Supply GRID. The public-private-
participation (PPP) projects in this segment are backed by Viability Gap Funding. The
projects in this segment include end to end water supply with minimum off-take and
long term concession agreements of 25-30 years. Few projects include-
• Dhanki - Navda (~INR 614.38 Crore project spanning 93.50 KM with ~553 MLD
capacity)
• Navda - Budhel (~ INR 417.6 Crore project spanning 76.1 KM with ~ 332 MLD
capacity)
• Dhanki - Khirai (~ INR 805 Crore project spanning 120 KM with ~ 550 MLD
capacity)
• Dhanki - Ratanpar (~ INR 1,037 Crore project spanning 146 KM with ~ 545 MLD
capacity)
• Bhaskarpura to Navda bulk water pipeline (105 Km length, with 436 MLD capacity)
Planned projects and opportunities Location
45 MLD Proposed Sewage Treatment Plant at Madhar on
BOOT Basis
Rajkot
50 MLD Water Treatment Plant on DBOOT basis Ranakpur
Planned Augmentation of Jaspur and Raska Waste Treatment
Plant, Total investment ~ Rs. 55 Cr
Ahmedabad
Solar Plant planned at Kotarpur ~ Rs 1.5 Cr Ahmedabad
Requirement for Tertiary Treatment of secondary treated
sewage ~ Rs 500 Cr
Ahmedabad
Combined opportunity in 4 STPs for 200 MLD, with
estimated investment of ~ Rs 180 Cr
Surat
STP at Gauridad of 70 MLD, of 56 MLD Rajkot
Tertiary treatment plants of ~ 60 MLD, with estimated
investments of ~ Rs 180 Cr
Surat
Total potential under these projects is about INR 30,000 Cr over a 25 year
cycle

48
2. Management of water distribution – Projects in this segment include efficient
management of water supply systems through long term management contracts for
service delivery management. Data acquisition and water data collection on
automated systems to setup online water quality monitoring mechanisms would be
an important need for the project.
3. Desalination Projects – These projects are being developed to meet water
requirements in coastal regions for industrial water demand and urban/rural water
supply. Potential investment and business opportunities are expected from SIR’s and
SEZ’s. Potential areas for desalination include Jamnagar, Pipavav and Dholera, with
projects ranging from 50 MLD to 200 MLD.
Total estimated potential ~ INR 200 Cr per annum with estimated potential
of ~10,000 KM network
Total potential under these projects is about INR 2,100 Cr
Case study of upcoming large water project:
A consortium of Hitachi and Hyflux has won an order for the construction and operation of
Asia’s largest desalination plant at Dahej SEZ in Gujarat. Project is project is supported by
Japanese Government
Project Overview
Plant Output 336 MLD for industrial users in Dahej SEZ in Gujarat
Client Dahej SEZ Ltd
Technology Reverse Osmosis (with ultrafiltration pre-treatment)
Est. Project Cost
~ $ 600 Mn (~ INR 2,000 Cr) through combination of equity and
non-recourse project finance
Project Area 30 hectares (to be bought in Dahej SEZ by the private parties)
Project Structure Design, build, finance and operate (DBFO) model, with
concession agreement of 30 years
Agreement Terms
• Water supply for 30 years period (including 3 years construction
period), to water to units in SEZ as well as enterprises being set
up in PCPIR
1
, Dahej
• Project to be setup in two phases (of ~ 168 MLD each)
• Water purchase agreement for 100% output on a take or
pay basis

49
4. Energy Efficiency Projects – These projects are being developed to promote
overall energy efficiency in bulk water and water distribution transmission projects.
(Pilots conducted by Gujarat Water Supply and Sewerage Board (GWSSB) have given
encouraging results). These projects present an opportunity for Energy Service
Companies (ESCO) for project implementation, with favourable institutional
framework with provision for escrow mechanism proposed to ensure distribution of
savings
5. Comprehensive Water Supply Projects – These projects are being developed to
ensure comprehensive scope, including intake to service delivery in villages, towns
and industries. Some of the projects include :
a. Water Supply to Dahej PCPIR (Petroleum and Petrochemicals Investment
Region) for industries as well as townships
b. Water Supply projects of Sabarkantha based on water supplied from dams
Other projects that could act as avenues for involvement of private sector include pipeline
projects for irrigation, supply of micro irrigation technologies, water supply management for
SEZs, SIRs and Industrial Estates, pond lining and water storage in coastal areas etc.
Snapshot of large project opportunities:
Total potential is about INR 20 Cr per annum
Snapshot of large project opportunities:
1. Desalination plant at Dholera Special Investment Region (SIR) – A desalination plant of
~500 MLD is being planned at Gulf of Cambay under the aegis of GIDB
2. Water recycling & reuse for Ahmedabad–Dholera region – A project to tap 500 MLD of
waste water available after secondary treatment on west side of Ahmedabad city for non-
potable usages in the SIR Region is being proposed. Recycled water shall be transmitted
through two parallel pipelines to storages proposed in the SIR. Project opportunities
include setting up of Tertiary Treatment Plants for waste water of STPs at AUDA & AMC
premises and transmission of recycled waste water after tertiary treatment
3. Desalination plants at Dahej, Jamnagar, Pipavav, Kutch, being developed by GIDB
4. Development of 2,000 sq. km. of world's biggest fresh water reservoir in sea – Kalpasar
water project

50
6.6 Profiles of key companies operating in water sector
I. Veolia Water
Company evolution :
• Founded in 1853 as water supply company, providing public service concession to supply
water to city of Lyons
• Evolved into integrated water services company (end to end solutions) with presence in
more than 65 countries
• Has presence across water value chain, with strong focus on R&D to deliver new and
innovative solutions
Key customer segments : Wastewater treatment, drinking water production & distribution,
seawater desalination, wastewater recycling, production & treatment of process water for both
industrial and municipal clients
Key proprietary offerings : Developed proprietary solutions for industrial space
• Actiflo™ and Actiflo™ Pack - high speed clarifiers Lamella Plate
• Heavy metals remover: Metclean™ and Hardtac™
• Water Chemicals: Hydrex™, water conditioning
• Filtration: Multimat™ - up to 100 m3
/hr
Budget Highlights
Government of Gujarat has made a provision of INR 2,700 Cr for Water Supply in its
annual budget of 2013-14. Key highlights of the budget are:
• INR 1,650 crore for the water supply project based on the Sardar Sarovar Narmada
canals. About 300 villages of 45 talukas of Bhavnagar, Amreli, Junagadh, Porbandar and
Rajkot Districts will be benefited.
• Strengthening of water supply facilities in the tribal area, 20 village based water supply
schemes run by the community and covering 2,100 habitats
• Water supply scheme for Dahod City will be completed at the cost of INR 460 crore.
• ~INR 180 crore for expanding the water supply facilities in the 2,700 villages of coastal
area
• INR 50 crore to cover 800 more villages under the village level participatory water
distribution system organized by the WASMO
• Provision of INR 100 crore for the water supply schemes for the cities viz. Rajkot,
Bhavnagar and Gariadhar
• Provision of INR 5 crore for setting up of the Water Infrastructure Protection Task Force
• INR 1 crore for intensifying the Public Awareness Campaign for Water conservation

51
II. Hyflux
Company evolution :
• Started off as Hydrochem (S) Pte Ltd, trader of water treatment systems in Singapore,
Malaysia and Indonesia
• Company has started manufacturing of proprietary membranes; and has entered into BOOT
projects space (marquee projects include supply of drinking water for Singapore)
Key customer segments : Power plants, steel companies and chemical companies, Municipal
Corporations and Public Utilities; products and systems installed across more than 400 locations
with presence in USA, Europe, MENA1
, India, China, South East Asia & Japan
Key proprietary offerings : Proprietary membrane technologies:
• Proprietary Kristal® ultrafiltration membranes
• PoroCep® Superior performance efficiency and reliable solution for industrial wastewater
• Ferrocep® Stainless steel tubular membrane for superior separation performance
• Membrane systems for microfiltration, ultrafiltration, nanofiltration & reverse osmosis
III. Nalco
Company evolution :
• Started off in 1928 and after series of M&A named as NALCO Chemical Company
• Company has backward integrated to offer comprehensive water management solutions and
offers solutions in more than 170 countries
• Part of Ecolab company; provides water, hygiene & energy technologies and services
Key customer segments : Over one million customer locations primarily in food, healthcare,
energy, hospitality and industrial markets
Key proprietary offerings :
• NALMET® (patented) - suitable for removing heavy metals
• Oil and suspended solids reduction in steel industry direct contact water systems
• Chemicals for boiler water treatment and cooling water treatment
IV. JUSCO (Jamshedpur Utilities & Services Company)
Company evolution :
• Carved out of Tata Steel from its Town Services Division in 2004
• Evolved as India’s first comprehensive urban infrastructure services company
Key customer segments : EPC solutions to end users and management solutions for Municipal
clients and public utilities
Key offerings :
• End to end water management services right from water extraction to wastewater treatment,
including billing, revenue collection and asset management services

52
Snapshot of few water services companies
S.No. Company Overview
1 Ion Exchange
Provides total environment solutions - water treatment, air pollution
control, solid waste management and energy generation from waste
2 Doshion
Key player in the Water and Urban Infrastructure category providing
water, sewage and industrial effluent treatment services
3
Hindustan Dorr
Oliver
Equipment manufacturer and an EPC player for water and
wastewater industry
4 Thermax
Executes both turnkey and EPC for large capacities and provides
standardized product range for certain capacities
V. IDE Technologies
Company evolution :
• Started off in 1960’s as R&D company for desalination solutions, jointly owned by Israel
Chemical Ltd. & the Delek Group
• Leader in thermal distillation technologies with management of units for industrial and
municipal customers worldwide, evolved into integrated water services company with
presence in more than 39 countries
Key customer segments : Facilities includes water desalination, industrial water treatment,
snowmaking & refrigeration for industrial clients and various government bodies
• IDE PROGREEN™ - RO technology without use of chemicals
• Water treatment for O&G; Coal fired power plants; refineries
VI. VA Tech Wabag
Company evolution :
• Started in 1924 as a turnkey solution provider
• Integrated across value chain to offer comprehensive solution
Key customer segments : Municipal Waste water, Industrial waste water, Desalination, ground
water treatment; Presence across water value chain from designing to operations
• BIOPUR® - less polluted water (municipal)
• FLUOPUR® (municipal)
• MARAPUR® - chemical industry
• Activated Sludge
• ENR® Process – Electrodialytical Nitrate Removal (ground water treatment)

53
7. Action Points for Water Sector

54
7.1 Current Approaches to Water Problems
The lack of adequate water availability is a major issue that could impact the progress of
Gujarat in the coming years. The unavailability of sufficient volumes of water, worsened by
the wide variations in the availability could distort the current water usage pattern. As
drinking water and agriculture are afforded the top priority by the water allocation policies of
the state (National Water Policy guidelines also provide highest priority to drinking water
security), the impact of fluctuations in water availability on industrial water supply is far
more severe. A swing in the water supply in a year could have a crippling effect on the
current industrial production and negatively impact future industrial growth. The potential
revenue loss due to shutdown of operations (business continuity risk) far outweighs the
potential higher costs required for water security. But the scale of the water availability
challenge in Gujarat could lead to water shortages affecting agriculture and municipal water
supplies in the future.
The situation is worsened by the fact that large volumes of industrial and domestic
wastewater is generated but not re-used to the proper extent. Most of the wastewater
treatment, particularly in cities is not geared with the objective of replacing freshwater
usage, and hence, the treatment levels are only sufficient to discharge in the environment.
This implies a huge wastage of a potentially large source of water. Water quality is also a
concern in some of the districts that suffer from groundwater contamination or the mixing of
improperly treated (or untreated) wastewater mixing with the freshwater sources.
The policies governing water sector have evolved over the years, but the current regulatory
regime overseeing the sector is still significantly short of the desired levels. The notion of
water being treated as a free commodity has led to improper pricing of water historically.
The cost of sewage treatment and disposal is also not adequately factored in the pricing
mechanism. These pricing flaws have hindered the evolution of proper water management
practices. This has also led to under-recovery of revenues. In most places, the revenues
collected have not been sufficient to recover even the operating and maintenance costs. This
has led to the state where the Governing bodies (like municipal corporations) do not have
adequate funds to upgrade the water infrastructure, while the levels of unaccounted for
water and non-revenue water remain significantly high. The last mile connectivity in many
places is non-existent, due to the lack of sufficient distribution network.
The largest consumption of water in the State (and nationally) is the agriculture sector.
While canals and irrigation facilities are being developed, the attempt to influence the
current irrigation practices and implement measures to reduce water consumption (on a
hectare basis) is minimal. Thus, the lack of a proper guidance mechanism has led to
indiscriminate water usage, leading to severe groundwater stress in many talukas. The
penetration levels of drip irrigation are still low, compared to the potential.

CII Gujarat 2014- Securing Our Water Future

CII Gujarat 2014- Securing Our Water Future

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