Watering the Economy

Mahatma Gandhi once said, "The world has enough for everyone's need, but not enough for every one's greed."

Unfortunately, this is the truth about the world's water supply today. Water scarcity is a fact of life faced by more than two billion people globally. In India, this problem is particularly pronounced. 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 overtake 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.

The World Health Organization reports that 97 million Indians lack access to safe drinking water, while 21 percent of the country's communicable diseases are transferred by the use of unclean water.

Water, pollution and over-pumping are deemed as critical issues but the largest issue by far is the mismanagement of water resources. If the last five years are a peek in to times ahead then erratic and unpredictable weather conditions can be expected to worsen due to climate change. A large fear associated with a shortage of water is that it may quickly become the root of domestic and in-ternational conflict.

Mr. Arun Lakhani, MD of Vishvaraj Infrastructure and an ardent promoter of water supply solutions states, "Mismanagement of water is obviously a human process issue. Unclear laws, government corruption and industrial and human waste have drastically reduced the amount of water available and have contributed to the pollution of huge quantities of water."

In their defence, the Indian government has had to play a balancing act, ensuring they meet the demands of urban and rural india, across different social strata, meeting economic and environ-mental targets. Today they stand at an important threshold, where a change in their actions, processes and protocols can prevent devastating water scarcity.

According to The World Bank, after China, India is the largest user of ground water in the world. 114 million Indians will face desperate shortages if something is not done soon.

The Solution.
Any solution to the water scarcity problem must come from within the nation. For example, Andhra Pradesh has successfully pioneered a highly ejective program of self-regulation. Involving the community to manage water schemes and creating awareness campaigns amongst farmers has allowed the state to reduce its water consumption.

However in order to make a large difference and curb the problem before it grows beyond us, the government will have to involve the private sector which has the financial resources needed to bring in change at a nation-wide level and the streamlined processes required to complete gigantic projects.

Mr. Arun Lakhani believes that a partnership between the Public and Private sector is the best way forward. "To recycle and reuse water in order to reduce the stress on natural sources and avoid conflicts is what is needed."claims the PPP expert.

Those who support the PPP model are of the understanding that a privatized approach would improve efficiency, encourage innovation and prevent waste. In fact the usage of treated water for industrial purposes is expected to reduce fresh water consumption by 20,000 MLD, creating extra supply for urban use. Such a model would also allow local municipalities to earn extra income as the treated water will be sold to industries and the revenue will be shared between the Urban Local Body and the private company.

A great example of this is the Sewage Water Reuse program started in Nagpur under a PPP model, spear headed by Lakhani. 100% of funding is provided by VIL and was the first PPP project in water supply in India, which proved to be a great success. When the water sale to a nearby thermal plant begins, the revenue will be large enough to cover the maintenance and operation cost of the treatment plant for the coming 30 years.

There are several challenges that private players must face along the way. Government protocols and policies often create difficulties in execution of projects. Bureaucratic requirements often hold up approvals and the delay translates to extra costs for companies. Additionally, in India, water legislation, water recycling, efficient re-use of water, water conservation and infrastructure has been ignored for far too long. Due to India's historical background, water has never been managed as a scarce resource but rather as an abundantly available resource. To break away from this mindset, private companies must not just plan and design solutions but raise awareness through knowledge sharing.

Indian citizens are skeptical about building partnerships with the Government or a private sector company, deeming both as unreliable, corrupt or profit driven. "The trust of the people, in what we need to accomplish and our intentions are of utmost importance. India will not be able to prosper without bridging the gap between the Public, administrators and developers through transparent communication, advices Mr. Lakhani.

The participation of the people in governance and local development and planning is the only sustainable way to build a successful PPP, while benefiting the environment, public health and econ-omy.

In order to avoid a decrease in agricultural production, an industrial stagnation, water related epidemics and a possible war over water India must take action. It must make water supply and waste water management a national issue; much like food availability and economic growth was in the past decades. People need to begin harvesting rainwater, treat waste effectively, and regulate wa-ter usage and most importantly conserver water. On the national level, the Government will be wise to explore all its options, including PPPs and ensure that a monitoring system is in place, to ensure efficacy, transparency and a better relationship with the citizens.

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.