Arun Lakhani - Man on a Mission

In 2015, India as a nation is enjoying exponential growth and establishing itself as one of the most successful economies. The Indian government now faces the challenge of providing infrastructure services and assets needed to maintain momentum. Electricity, new highways and water supply are just some of these. Even with 2013-2014 witnessing a gross tax collection of ₹13.64 trillion (US$210 billion) India struggles to create adequate systems. Funds raised through taxes and regulatory fees are massive yet limited, due to multiple expenses such as scientific research, agricultural support and military defence, to name a few.

Water scarcity and the management of waste water are especially pressing issues. Millions of Indian citizens suffer from a lack of access to clean drinking water. With the second largest population in the world, the problem is only expected to grow. By 2050 India will over take China’s population, when it is expected to reach 1.6 billion people. With a growing population, comes the stress associated with it. A massive agricultural sector to support food requirements, a growing economy to sustain the livelihood of citizens and the need for drinking water will only place a larger burden on quickly dwindling water bodies.

There is much to be done and the government is quickly realizing that Indian companies will play a large role in the coming years. Public Private Partnership models are being adopted across the country to solve a plethora of issues. With appropriate regulation, monitoring and political will the Indian government can give the Indian Infrastructure scenario the boost it needs to support our growing nation and compete with other first world countries.

In sphere of PPPs, one man's record stands out as an example of what can be achieved. Mr. Arun Lakhani, MD of Vishvaraj has evolved in to one of India’s leading experts and has successfully implemented water supply and waste water management projects.

He is the man behind Nagpur 24x7 water supply project. Nagpur, due to rapid urbanisation across the last two decades, has faced severe water supply challenges. The availability of water has been highly inconsistent ranging from a few hours a day to  a few minutes . Mismanagement of water distribution lead up to losses of up to 60%. Quality of water was frequently found to be bellow drinking standards.

In 2012, in order to face this gigantic challenge the Nagpur Municipal Corporation chose to enter in to a Public Private Partnership, a landmark move in the history of the Government working hand-in-hand with the private sector. Nagpur essentially opened it’s doors and mind to an opportunity

that would help build a streamlined and efficient model which could be replicated in the future.

Nagpur became the first city in India to build a 24/7, fully pressurised drinking water supply system. A joint venture company aptly named Orange City Water was created and entered a concussion contract under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM).

When asked about challenges faced, Mr. Lakhani said “Let challenges be a learning opportunity and not a reason to stop the development of our nation”. PPPs create several benefits such as access to additional resources, investments and stat-of-the-art technology. Mr. Lakhani wants to apply these benefits to several problems faced by India.

“Governments worldwide are increasingly turning to the private sector to help provide services in communication, energy and power, water and transport sectors. Streamlined and efficient methods usually adopted by corporates are the reason for this”, claims Mr. Arun Lakhani.

Reduced cost in the form of better executed planning and development of each project is large benefit that is often considered. A profitability approach ensures better screening of options, structuring of projects and choice of technology.

“The Indian Government can benefit from an increase in services, without spending immediate cash, avoiding major risks by transferring them to the private sector and ensuring timely delivery of projects”,  added Mr. Lakhani.

With success stories such as the one unfolding in Nagpur, it is time to apply what we have learnt to other parts of India. In fact, as of 2015 several states and cities have already begun signing PPP agreements, especially in the water supply and waste water treatment sectors. Punjab, Haryana, Panchkula, Gurgaon, Faridabad and Karnal are some of these.

Haryana and Punjab plan to implement state-of-the-art water supply systems and water waste management protocols. Mr. Lakhani believes in empowering the private sector in India and strongly advocates that PPPs would improve efficiency in water systems ,water treatment plants and in the reuse of water. With a track record such as his, it would be wise to pay heed to his advise and take a closer look at his proposed solutions.

Making 24x7 Water Supply a Reality Across India

India has quickly evolved and grown to become a super power in today's global scenario. The will and handwork of its citizens and favorable economic conditions have allowed this. Now, it needs to adapt and learn how to sustain itself. With a population of 1.2 billion people and counting, it is safe to say that India has long reached its tipping point, and must now take focused measures.

It is clear that with the growing demands, any government with their existing resources is unable to provide stable and well-built infrastructure such as roads, health care, electricity, water and waste management. Even with 2013-2014 witnessing a gross tax collection of ₹13.64 trillion (US$210 billion) and not including regulatory fees collected, our nation struggles to create adequate systems. One must take into consideration that the government makes very tough decision regarding the expenditure of this money and must prioritize amongst several other aspects such as scientific research, agricultural support and military defense, to name a few.

However, a solution has emerged in the form of Public Private Partnerships (PPP), a model wherein the government works with either one or a consortium of private companies, in order to achieve goals. A great example of this is Nagpur. The city has successfully implemented India's first ambitious 24x7 water supply scheme, in partnership with Veolia. With a population 2.7 millions people, this project has proven to be a great challenge, an experiment and a model to be followed across the nation. The PPP venture has been been functional for the last three years.

Similarly, another PPP explored a 200 MLD waste water treatment and reuse project. Treated waste water was to be sold to nearby thermal power plants and industries.

A leading expert in the field of PPP, Mr. Arun Lakhani, MD of Vishvaraj Infrastructures, believes PPPs to be the best way forward in tackling India's growing needs. "Going the extra mile, is what Private players are great at. Innovation is the key and can only be achieved when the government works with companies and keeps the People in the loop"

With success stories such as the one unfolding in Nagpur, it is time to apply what we have learnt to other parts of India. In fact, as of 2015 several states and cities have already begun signing PPP agreements, especially in the water supply and waste water treatment sectors. Punjab, Haryana, Panchkula, Gurgaon, Faridabad and Karnal are some of these.

The big question posed by the government and the public is "How can PPP help with water related issues?"The answer lies in the way private companies function. Known to be process driven and financially more resourceful, private sector players carry all the ingredients needed to implement large scale infrastructure projects. Significant investments are needed despite government announcements of creating Smart cities and AMRUT schemes. In addition, challenges such as tariff revision to meet operating costs, revenue collection risk and lack of base line data for analysis also need to be overcome.

After Nagpur, Haryana and Punjab plan to implement state-of-the-art water supply systems and water waste management protocols. PPPs would improve efficiency in water systems, water treatment plants and in the reuse of water. Depletion in groundwater, in these agriculturally important locations, has made them the ideal choice for this model.

"It is imperative to take action before it is too late. It is the responsibility of every citizen and more so of companies, capable of making a difference.", stated Mr. Lakhani.

However, Private companies face their own issues when trying to assist the nation. PPP models have not seen much expansion in the last few years. In order to be successful, political and administrative will is needed but more importantly the involvement of individual citizens. The largest obstacle comes in the way of financial risk mitigation. A structured system is needed to ensure that local bodies are able to fund the developments needed through appropriate channels.

"It would be wise for the central government and local municipal bodies to quickly develop systems that can be monitored and sustained across different states."Says Lakhani. There are several private players capable of taking on these challenges but as with all large scaled, investment intensive projects, transparency is necessary, as is the flexibility of all those involved.

The Ganga Rejuvenation Plan, has been keep under close watch due to its economic, social and religious importance. The same diligence needs to be shown across all projects. A "Reduce, Recycle and Reuse"model is perhaps the best way forward for India's water and waste water management.