Nagpur 24x7 Water Projects - An Experiment and a Testimony

The situation
In the sphere of urban development and economic sustainability, it is pivotal to acquire and study as much data as possible. Analysis and learnings from past and on-going projects is necessary for determining the success of future projects and the allocation of national and local budgets.

With this in mind, nations such as India must plan decades ahead in order to achieve the desired growth. With a growing population of 1.2 billion people and a scarcity of resources, it is imperative that the Government take swift actions towards long term goals. Water, and its availability, is one such resource which is seen as not only a necessity but an indicator of general well-being. Urban India is often found struggling to provide citizens with clean drinking water and the situation only becomes worse as people migrate from the towns and villages to surrounding cities.

Nagpur, the third largest city in Maharashtra, is a great example of a local government taking action to cope with the increasing demands of its inhabitants. Due to rapid urbanisation of Nagpur across the last two decades, the challenges for adequate water supply have also increased. Availability of water has been inconsistent and ranges from a few hours a day to a slightly rare but possible, few minutes a day. Compounded with this is the mismanagement of water distribution leading to losses of up to 60%. In addition quality of water is frequently found to be below 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)

An expansive requirement for infrastructural upgradation and replacement means that it will take a minimum of five years to connect every citizen with 24/7 water supply. On their end, the Nagpur Municipal Corporation will retain ownership of the assets and will take responsibility of setting up the tariffs. Orange City Water will operate all the water treatment plants and the water distribution network, amounting to a combined capacity of ~750 MLD

The goal is to eventually connect the entire city, including the slum population with a safe supply of water, better in quality and pressure. Water wastage is a great concern and this hope is to reduce it significantly, through the better maintenance of storage systems, pipes and taps.

During our interview with him, CEO of Vishvaraj Infrastructures, the driving force behind Napur 24x7 water supply project, Mr. Arun Lakhani shared a poignant view on this matter. "Our nation's government needs to see private players not just as tax-paying entities but partners of development. PPPs need to set their goals high in order to gain the most from the benefits."

Benefits
The benefits are of this PPP model can only be understood and appreciated by comprehending the advantages that are gained through a 24/7 water supply system.

24x7 supply translates to a better public health.Maintaining full pressure removes the risk of bacterial contamination that can occur during interrupted water supply.

A PPP in this sector ensures a massive improvement in the services provided to all consumers, who henceforth are seen as customers. An increase in quantity, improvement in timing and consistency in availability across all starts of society is not just expected but required from an economic standpoint.

Service to the poor and to the rich is seen through a non-biased viewer. 24x7 supply means all citizens can hope to enjoy better health and hygiene which preventing the loss in economically productive time earlier used for collecting and carrying water. Indirectly, this saves time for employment opportunities.

24x7 allows customers to pay for better service as it reduces the costs they earlier incurred for coping with the inconsistencies.

Through efficient management overflowing storage systems are avoided and collected water is prevented from being discarded when new water arrives.

A PPP model ensures that the use of technology is given priority and in this way conservation is encouraged through metering and state-of-the art monitoring systems. This helps achieve management and operational efficiencies and reduces illegal connections.

Before concluding, it is necessary to go back to the start. The idea is not just to take action but begin an initiative so that one can learn from mistakes and evolve. It is impossible to put a system into place without overcoming challenges, correcting flaws and understanding changing requirements. The Nagpur Municipal Corporation has taken the first step towards the future, but the path will surely bring forth several challenges. "Let hurdles be a learning opportunity and not a reason to stop the development of our nation", says Mr. Arun Lakhani.

Public Private Partnership - The Need of the Hour

India in 2015, is at the brink of a great leap forward, culturally, socially and economically.

With a population of 1.2 billion people and counting, we as a nation need to evolve and adapt to our ever-changing environment in order to sustain ourselves and prosper.

At this tipping point, our government finds itself stressed and lacking resources 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 needs to provide for several facilities and infrastructure in one amongst many others such as scientific research, agriculture, military defence etc.

Social, economic and ecological issues have become a pressing matter for the Indian government and sustainability models which were once ignored are now being studied in order to tackle the obstacles expected in the coming decades.

India's strategy towards managing accelerated growth has been a great move in the geo-economical arena. Public Private Partnership models have slowly been developed over two decades and have witnessed success and learning experiences as well. However, several Private sector players are often wary of entering Government contracts. A host of reasons, play a role in this.

Leading PPP expert and MD of Vishvaraj infrastructure, Shri. Arun Lakhani ran us through some of the constraints that all private sector companies must take account of before venturing in to a PPP.

"Now, more that ever, there is a need for established companies and new entrepreneurs to come forward and play a vital role in developing our Nation, but only once they understand the challenges and are able to convert them in to opportunities", shared Mr. Lakhani.

Considerations for PPP Projects
Since India has open it's proverbial doors to PPPs, post the economic reforms in the 1990s, projects have faced issues which have restrained more the successful and widespread implementation of this model.

Legal Volatility
As Indian policy enforcers evolve they improve in their execution of long-term plans. However, one must understand that this is a process and as with all such matters, changes are inevitable. Over the years several inconsistencies have been pinpointed and improved. However, this has required private partners to alter their operations and internal policies, sometimes at their own cost.

"Staying updated with PPP regulations, flexibility and a streamlined approach to the environment is the best way forward", says the much experienced PPP advisor.

Tariffs
Although, progress has been achieved, there is much to be done about the pace at which we are growing. Deregulation of tariffs for public services needs to happen quicker if private investors can make the profits that will determine their future decisions.

Greater financial management and a stringent cost-vigilance is the only way forward according to Mr.Lakhani.

Transparency in the Bidding Process
Although technology has greatly assisted in making the tender acquiring process more transparent, several PPPs have shown signs of inconsistencies when it comes to bidding and suspension processes.

If more industrialists, builders and foreign investors are to step-in, transparency will have to be prioritised.

Although these aspects of our current socio-economic situation which every private company must keep in mind, they need not act as deterrents. With a growing investment in technology, streamlining of government protocols and taxes, there is much to be gained for those willing to place their faith in the subsequent success of PPPs.

Arun Lakhani Talks about Reusing and Recycling Waste Water

Water is a fundamental life component and a valuable resource. Around the globe various countries are facing water related issues, not the least India with its rapidly growing population and urbanization.

Unfortunately as the population of India increases, the scarcity of water has become a deadly challenge. The challenge lies in dealing with water scarcity while at the same time managing increasing consumption due to the growing population.

It is not as though we cannot fight this issue. One of the best ways is to reuse and recycle waste water.

The problem that we face today
One of the areas where we can start is agriculture. Using the drip irrigation method, efficient management of waste water is quite possible. A major obstacle in implementing this method is the un-organised nature of this sector. On top of that, the number of small land holdings is quite large that makes it more complicated and challenging to put into practice such efficiency measures.

At the other end of the spectrum urbanization has led to massive migrations form rural areas to towns and cities intensifying the problem of managing water requirements. The ever growing human density, lack of efficient conservation measures, industrialization and changing ecological environment is leading to an unprecedented change in water consumption patterns and the balance of demand & supply.

One of the reasons for such a situation is the lack of budget for local bodies to implement any waste water management methods. In addition to it, urban areas are becoming industrial hubs which have resulted in disproportionate usage of water. The conflict between agriculture & industry and rural and urban with agricultural sector is thus complicating the waste water management issue.

Probable solution:
To find a sustainable solution we spoke to Mr. Arun Lakahani, MD VIL and leading expert in PPPs for waste water management.

Lakhani says the way forward is to look at countries such as Singapore, Korea and even USA, not to copy their methods but to customize available technology to suit out ecosystem and requirements. These countries have adopted efficient and effective methods for waste water management which if used smartly would greatly benefit India.

One of the successful methods involves waste water being given tertiary treatment that will make it usable (in this case drinkable). This not only ensures that waste water is managed well but also utilized effectively & productively.

"Now, if we try to fit this process in India as it is, it will be difficult; more because of cultural acceptability rather than any other thing." Says Lakhani

So maybe the way to work around this is to take the treated water and divert it towards industrial use and conserving fresh water for domestic usage.