Context:

• Recurring heatwaves and rising temperatures across cities such as Narsinghpur (MP), Ahmedabad (Gujarat), and Barmer (Rajasthan) have intensified urban water scarcity.
• High evaporation rates, growing domestic demand, and dependence on distant water sources have exposed the vulnerabilities of India's urban water management system.
• With annual per capita water availability projected to decline from about 1,500 m³ to below 1,200 m³ by 2050, India is moving closer to the internationally recognised water-scarcity threshold of 1,000 m³ per capita.
• This necessitates a shift towards a circular water economy centred on the reuse of treated wastewater.

Why Water Reuse Matters?

• Treated domestic wastewater (used water) can be reused for several non-potable purposes, including:
  • Agriculture and horticulture
  • Landscaping and urban greening
  • Construction activities
  • Public sanitation facilities
  • Industrial processes such as textiles
  • Lake and water-body rejuvenation
• According to the Council on Energy, Environment and Water (CEEW), large-scale wastewater reuse can:
  • Create an investment opportunity exceeding ₹3 lakh crore.
  • Generate nearly 1 lakh additional jobs by 2047.
  • Reduce freshwater stress in urban areas.
• For example, Thane can bridge its current water deficit of 53 million litres per day through expanded reuse of treated wastewater.

Key Actions to Build a Circular Water Economy:

• Develop city-specific water reuse plans:
  • While around 14 Indian States have introduced water reuse policies, broad policy frameworks alone are insufficient.
  • Cities require tailored reuse plans that define water deficit reduction targets, water quality standards, sector-wise reuse priorities, revenue models, and institutional implementation mechanisms.
  • This is because of diverse urban needs, for example,
    • Delhi, Varanasi, Bengaluru (agriculture in peri-urban areas);
    • Chennai (lake and water-body rejuvenation);
    • Thane (construction sector); and
    • Surat (industrial applications).
  • City-specific planning can maximise local benefits and improve resource efficiency.
• Mobilise private financing:
  • India's wastewater infrastructure remains inadequate. For example, less than 50% of urban sewage is connected to treatment networks, and only about one-third of sewage was actually treated in 2021.
  • Major constraints include insufficient sewerage infrastructure, lack of skilled manpower, energy shortages, and poor maintenance funding. To bridge the investment gap, private capital must complement public expenditure.
  • Blended finance models:
    • The Hybrid Annuity Model (HAM) adopted under the National Mission for Clean Ganga (NMCG) offers a useful template by sharing financial risks between governments and private developers.
    • Such models can accelerate the development of sewage treatment and reuse infrastructure.
• Improve functionality of Sewage Treatment Plants (STPs):
• Many sewage treatment plants fail to meet the discharge standards prescribed by the Central Pollution Control Board (CPCB).
• Major challenges are poor operation and maintenance, mixing of domestic sewage with industrial effluents, and discharge of untreated waste by non-compliant industries.
• Most STPs depend on biological treatment processes using microorganisms. Heavy metals and toxic chemicals from industrial waste can destroy these microorganisms, reducing treatment efficiency.
• Strengthening compliance: Strict enforcement of Zero Liquid Discharge (ZLD) norms, use of AI and digital monitoring systems, real-time tracking of industrial violations, and incentives for compliant industries.
• Gujarat’s financial support mechanisms for industries implementing ZLD provide a successful model.
• Launch a National Circular Water Mission:
  • India requires a comprehensive mission to transition from the traditional "use-and-dispose" approach to a regenerative water management model.
  • Key reform areas:
    • Technological reforms: Expansion of decentralised wastewater and faecal sludge treatment systems. Focus on rapidly growing peri-urban regions.
    • Institutional reforms: Empower Urban Local Bodies (ULBs), establish Special Purpose Vehicles (SPVs) for reuse projects, and convert wastewater management into a viable economic activity.
    • Financial reforms: Incentivise users of treated wastewater, recognise freshwater as an economic asset, introduce efficient water pricing mechanisms, and protect vulnerable sections through targeted subsidies.
    • Behavioural reforms: Promote public acceptance of treated wastewater reuse. Encourage citizen participation in water conservation. Mainstream wastewater reuse as a normal urban practice.

Policy Support and Emerging Roadmap:

• The vision for a circular water economy has received policy backing through:
  • The study "Water, Nature, Progress"
  • Economic Survey 2025–26
• Both documents advocate institutional, financial, and technological reforms to enhance water resilience and reduce dependence on freshwater resources.

Conclusion:

• India's aspiration of becoming a Viksit Bharat by 2047 hinges on strengthening water security amidst rising climate risks and urbanisation.
• A circular water economy offers a transformative pathway. The policy framework and successful examples already exist; the challenge now is rapid and large-scale implementation to build long-term water resilience.