INDIAN WATER INDUSTRY

1. INDIAN WATER INDUSTRY

2. Water Crisis Global Scenario Water a scarce resource of future It’s a global problem now In the past month 2000 Indian Farmers arrested for stealing water A regional government of Spain (Catalonia) is going to import water by boat and trains in summers Queensland Water Commission of Australia put local residents on the toughest water restrictions In Atlanta residents filed a Law suit against the Municipal government. It is said that water will be one of the greatest human challenges of the early 21st Century

3. Water Crisis Business Opportunity Any crisis is the business opportunity for the Industry US is expected to invest around US$ 1.2 trillion on repairing and upgrading its water management infrastructure. The companies like Kurita Water industries of Japan, Gebert in Switzerland making money in infrastructure equipments Halma of Britain in sensors detecting leaks in water and sanitation pipes Aqua Dyne of Australia in water purification, H2O Innovation of Canada in water and waste management through sledge and membrane bio-reactor technologies. An index of 50 stocks of companies involved in water related business has gone up be an average of 24% per year over five years through 2007 (source Bloomberg) It is now viewed as an infrastructure investment.

4. Indian Water Industry

5. India Water • India is now realizing the need of water management in the country and effective measures have been started by the Government to manage the most important resource. • Water is one of the most important needs of living things. And only 0.007% of drinking water is available in form of ponds, lakes & reservoirs. • The geographical area of India is 329 million hectares • India stands II in land water resource with 113 large & medium rivers, flowing across 29,000 Km • Mean Annual rainfall in the whole country is 1170 mm which gives annual precipitation of about 4000 Km³. • Agriculture and irrigation are politically sensitive sectors where government don’t prefer much interference specially when it is for a price. Water issues in India • Growing population and rapid urbanization, severe strain to country’s natural resources. • Contaminated by industrial effluents, domestic sewage and agricultural runoff. • Pure water supply, but gross disparity in coverage exists • Unsafe water spread 21% of communicable disease • Diarrhea alone causes more than 1,600 deaths daily

6. India Water • Hygiene practices is a big problem. • Inefficient use of water in irrigation and the consumption can be brought down by efficient technology. • Farmers are having a hard time finding ground water to grow their crops in some areas • With rapid urbanization domestic water purification industry is expanding operations • 22000 millions lt. per day of wastewater get no treatment • Technology required for solid waste management • Measures to reduce the demand by adopting processes with minimum use of water, recycle and re-use etc. • Develop technology to figure future requirement of water in industries • Financial challenge of rehabilitating and maintaining its stock of water infrastructure.

7. Multi-Sectoral water use scenario and demand assessment • Irrigation • India cultivable area: 184 m ha which is about 12.7 % of world’s cultivable area. • The ultimate irrigation potential been assessed as 140 million hectare • 58.50 m.ha. by major and medium irrigation projects, • 17.40 m.ha. by minor surface water schemes • 64.10 m.ha. by ground water schemes • Presently irrigation sector consume 83 % of available water resources

8. Multi-Sectoral water use scenario and demand assessment • Domestic • Discharge of untreated domestic and industrial wastewater is predominant source of pollution of aquatic resources in India. • Urban centers contribute most of the sewage generation in the country. • Country harboring population generate about 29000 million litre per day (mld) of wastewater out of which only 7000 mld of wastewater gets some kind of treatment. • economic benefits of drinking water and sanitation targets on households and the health sector amounts to $ 84 billion per year which reduce health care cost, illness & death Urban Water Supply & Sanitation • Out of total population urban is about 285 million, which is 27.8 % of the total population living in 5161 towns. • Expected to reach 433 million by 2021

9. Multi-Sectoral water use scenario and demand assessment • Solid Waste Management (SWM) is a part of public health and sanitation. • The Urban Local Body undertakes the task of SWM service delivery, with its own staff, equipment and funds. • In some cities SWM is contracted out to private enterprises. New programmes by state Governments are eligible for implementing infrastructure facilities such as water supply, sewerage, drainage and solid waste management etc. • (i) Indian economy is growing with new township, colonization and massive development of metro and tire I cities. In sequence government of India has launched Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for which $15 billion funds have been year marked for 59 big cities. The part of development process will be integrated water system, development of sanitation, water treatment projects. • (ii) Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT). • Implementation: 2005 to 2012

10. Multi-Sectoral water use scenario and demand assessment • Rural Water Supply and Sanitation • More than 85 percent of rural water supply is ground water based and consumes about 5 percent of the total annual replenish able ground water. • Major Issue: Sanitation coverage • Only 14% of rural household have toilets

11. Multi-Sectoral water use scenario and demand assessment Industries • Urbanization and industrialization of the country has increased substantial demand for water. • The industrial water requirements as estimated by the NCIWRD are 37 BCM, 67 BCM and 81-103 BCM for the years 2010, 2025 and 2050 respectively. • 70 % of water requirement is expected to be met from surface water resources and remaining 30 % from ground water sources. • Government may at any time intervene to prescribed pricing policy for the industry so that industries be compelled to look into technological intervention leading to reduced water requirement per unit of production. • There are already government regulation in place for compelling them to treat the industrial effluents before disposing into the open rivers & streams.

12. Water Demand Assessment by Standing Sub-Committee for assessment of availability and requirement of water for diverse uses in the country constituted by the Mo WR

13. Total Use Of Water Assessment by the National Commission on Integrated Water Resources Development (NCIWRD)

14. Weaknesses hence an Investment Opportunities • Effluents by industries pollute rivers, canal & reservoirs. Massive investment in technology is required for the cleaning up of the river, canals, etc. • Sugar factories, distilleries & refinery, leather tanning causes high water pollution with their effluent, large organization are capable to treat it but small and medium industries (SME’s) cannot due to high cost. • Cost effective New technology is required for SME’s • Cost effective desalination plants may be the solution for some of the coastal areas • The Government may consider the development of tourist projects on the sides of the rivers coupled with the cleaning up of the rivers. • The government may come out with the incentive policies for the industries opting for the better technologies • Technology to be brought in to convert wastewater into useful on the concept of “Wealth from waste”.

15. Weakness hence an Investment Opportunities • Special economic Zones (SEZ) are being developed rampantly in India as an export boosting exercise by the government where various tax incentive are given to the industries. SEZ are solely developed by private sector in the area ranging from 200 -25,000 Acres of land • SEZ comprise of industry, commerce and residential area where integrated water system is required to be developed for various constituents of the area. • 83% of water is used by agriculture sector for irrigation which is done in traditional way where consumption of water is very high as compare to global standard • National Commission on Integrated water resources development (NCIWRD) has estimated that efficiency of irrigation will increase up to 60% from present 35-40% by 2025. there is a huge scope of improved technology on cost competitive basis for the farmer.

16. Weakness hence an Investment Opportunities Urban Areas • In Urban areas there is lot of emphasis on recharging of groundwater • With the increase in urbanization & population, the water table is depleting and government is providing incentive for various schemes water harvesting etc. for recharging the groundwater. Improved technology will also find its way into the sector. • The source of supply in urban area is either from surface water from rivers, reservoirs and lakes. • Due to polluting industries and domestic sewage and shortfall in treatment capacity technology and resources would be needed to augment the deficit. • Indian economy is growing with new township, colonization and massive development of metro and tire I cities and tier II cities. In sequence government of India has launched Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for which $15 billion fund year mark for 59 cities. • The government encourage Public Private Partnership (PPP) wherever sole private companies may not enter. • Central & state government promotes various schemes to clean and de-silting the rivers, ponds, lakes & reservoir again under PPP model

17. Weakness hence an Investment Opportunities Rural Areas • To provide water is the responsibility of the government and any cost to be incurred by the farmers is highly politically sensitive thing in India and as such no direct opportunity may be available for the private sector. • However the Government is the biggest client for this sector • Most of the investment will come from the Government and public sector but the government may again be open for PPP model • Further the business opportunities do exist on the side lines of the rural population where water is taken from origin (river, dams) to fields of the farmer. This service chain can be a big business opportunity for e.g.. Micro hydel plants may be installed on the river, canals, dams and electricity can be supplied near by villages, towns on the bank of river • Technology can find way for clean water where water is available but not safe to drink (contaminated). • Mobile technology for water purification in villages. • The government may encourage cost efficient technology for the rural sector by providing various incentives • In India, contract farming has taken shape where large industrial players are taking participation for cultivating land. The cost effective technology will find place among these private players

18. Success or Failure in India ? THREEBASIC STEPS FOR SUCCESSFUL ENTRY INTO INDIA Developing a basic understanding or potential of the Indian market Envisaging and developing a Market Entry Strategy and Implementing these strategies when actually entering the market THREE BASIC STEPS THAT CAN LEAD TO FAILURE Underestimation of its complexity Overestimation of its possibilities Look to India as an opportunity for short-term profit

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