Challenges and Opportunities

Investment in the area of environment management of

Gujarat
03/10/15

Water Scenario in India

India has an average annual availability of water of 1869 BCM (Billion Cubic Metre) of
which only 1120 BCM is utilisable for consumption

According to the Falkenmark Water Stress Indicator that India is reaching the water
stress (1700 cum per person)

A country with 16% of global population but only 4% of the global resources, water is
one of the most important resource that needs immediate steps to prevent large
scale problems in the future

Demand for water in India has been growing at a steady pace driven by factors like
the population growth, rapid industrialisation and increased agricultural
consumption.

India also has wide spread regional disparity in water availability and the unevenness
of water demand.

North Eastern states face incessant rains and frequent floods, Western states such
as Gujarat and Rajasthan receive limited rainfall which is insufficient to meet the
local needs.

Water Scenario in Gujarat

Gujarat, with 50 BCM of utilisable water, has a per capita water availability of less than
1,200 cum, far lower than the nation average of 1,880 cum.

Most regions of Gujarat already lie in water scarce zones.

The availability of water varies widely with South and Central Gujarat (accounting for
38% of Gujarats population) having an annual per capita water availability of 1,932
cum while North Gujarat has only 342 cum.

Despite water shortages, Gujarat has witnessed industrial growth based on water
dependent industries such as chemicals, petrochemicals, textiles and food
processing.

Projected water demand for domestic and industrial customers are 2000 MCM by
2025.

Overview of Water in Gujarat

Spatial distribution of water availability in Gujarat shows a wide variation.

Southern region with less than 30% of states population have water availability higher
than national average

North Gujarat and Kutch have to contend with near water starvation scenario.

State has suffered drought like conditions in the past decades, which have further
contributed to the depletion of existing water resources.

Total utilisable water resources in Gujarat amount to 50 BCM break up reveals that
surface water accounts for 75%.

The rainfall pattern in the state shows the same degree of variation as the water
availability.

South Gujarat enjoys nearly 3-4 months of rainy season with average rainfall in the
range of 1,100 1,200 mm. North Gujarat has rainfall in the range of 800-900 mm while
Saurashtra has rainfall in the range of 400-800 mm. Kutch region has the lowest
recorded rainfall in the state with less than 400 mm rainfall on an average.

Surface Water Scenario

Gujarat has nearly 185 river basins

Tapi, Narmada and Mahi are perennial rivers

River basins in regions like Kutch are plagued with issues of poor rainfall thus rendering
them ineffective in providing a long-term solution to the water issues in the state.

Profile of Rivers

Narmada It covers nearly 160 km in the state and drains a catchment area of 11,000 sq km.
The annual runoff in the Narmada Basin is 34,000 MCM. Some of the major storage projects on
the river are Karjan (630 MCM), Tawa (2,310 MCM) and Barna (540 MCM).

Tapi River drains 3,800 sq km in Gujarat covering 214 km. Annual runoff in the Tapi Basin is
6,700 MCM. Major storage projects on the river are Ukai (8510 MCM) and Kate Purna (98 MCM)

Mahi This river flows for a length of around 583 km and flows through Panchmahal and Kheda
district. It drains an area of nearly 11,500 sq km in Gujarat.

Surface Water Scenario

Profile of Rivers

Mahi This river flows for a length of around 583 km and flows through Panchmahal and
Kheda district. It drains an area of nearly 11,500 sq km in Gujarat. The annual runoff in the
Mahi Basin is 4,360 MCM. Some of the major storage projects on the river are Mahi Bajaj
Sagar (2180 MCM) and Kadana (1,540 MCM).

Sabarmati This river flows fro a length of around 371 km and drains an area of nearly
17,500 sq km in Gujarat. The annual runoff in the Sabarmati Basin is 1,560 MCM. Sone of the
major storage projects on the river are Dharoi (900 MCM) and Watrak (1,540 MCM).

Groundwater Scenario

Despite accounting for only 25% of the states water resources, groundwater is one of
the most widely used sources of water in most regions of Gujarat.

Limited availability of surface water and the lack of a proper distribution network had
led to a great reliance on groundwater to met the water needs of most constituents in
Gujarat.

Annual replenish able groundwater resources in Gujarat are 15 BCM.

The entire 15 BCM of groundwater cannot be exploited only 12 BCM are utilisable
resources.

The major use of groundwater resources is in irrigation (90%) while comparatively

lesser usage is in domestic and industrial usage.

The current scenario of groundwater usage in most parts points to a sorry state of
over exploitation in many regions.

The natural geological formations in the state are not conducive for percolation of
groundwater in many areas.

Water Problem Mitigation Efforts in Gujarat

Narmada Project

The Gujarat Government has embarked on an ambitious programme to resolve the

water shortages in the state.

The Narmada Project was conceived with the aim of creating a river-linking project to
facilitate an inter-basin transfer scheme where surplus water from some basins could
be transferred to the water scarce areas.

Water tribunal governing the Narmada Project has allocated 2,900 MLD for domestic
purpose while 670 MLD have been allocated for industrial purposes.

The scope of project spans to nearly 50% of the villages in Gujarat.

The projects primary aim is to meet drinking water requirement.

Water Problem Mitigation Efforts in Gujarat

Sardar Sarovar Canal Based Project

The Government of Gujarats long term aim is to create a State wide Water Supply Grid,
that is aimed at inter-basin water transfer.

157 projects are planned under Sardar Sarovar Canal based Water Supply Projects

134 projects based on surface/ sub-surface sources under Rural Water Supply
Program

Sujalam Suphalam Yojana

A project being developed in parallel to Narmada project is the Sujalam Suphalam

Yojana.

The focus districts of this project are the ten water scarce districts in Gujarat with a
planned 32 schemes.

Regulatory Framework for Water Management in

Gujarat
Gujarat Water Resources Development Corporation (GWRDC)

Geo-hydrological investigation of groundwater resources

Resistivity Survey in hard rock areas

Chemical & biological analysis of water & soil samples

Remote sensing data study & analysis for ground water feasible areas demarcation

Assist in Planning, Design and Lay-out of Recharge Work, Lift Irrigation

Laying distribution pipelines in command areas of tube wells

Developing lift irrigation schemes

Construction of recharge works

Drilling of tube wells in all terrain

Cleaning & fishing of tube wells

Regulatory Framework for Water Management in

Gujarat
Gujarat Water Supply and Sewerage Board (GWSSB)

Plan and implement the Drinking Water Supply and Sanitation policy

Coordinate and review all Water Supply and Sanitation Programmes

Coordinate the Water and Sanitation programmes with Government of India

Support Water Conservation and Harvesting Programmes

Formulate and recover the water charges

Water and Sanitation Management Organisation (WASMO)

Assist in planning, implementing and maintaining drinking water supply systems and
environmental sanitation (primarily for rural areas)

Water management activities including rainwater harvesting, surface storage

Regulatory Framework for Water Management in

Gujarat
Sardar Sarovar Narmada Nigam Limited (SSNNL)

Responsible for the water extraction from Narmada River

Sale of water to units like GWIL which then sell water to GWSSB and other local
bodies

Gujarat Industrial Development Corporation (GIDC)

Nodal agency responsible for industrial estate development

Prescribed water regulation rules for industries governed by the industrial estate

Regulatory Framework for Water Management in

Gujarat
Gujarat Pollution Control Board (GPCB)

Repository of discharge norms for wastewater (industrial effluent, domestic)

Maintains details about polluting industries and is responsible for ensuring that the
industries are not violating the discharge norms

Responsible for ensuring quality of drinking water

Maintains environmental data and research reports

Gujarat Water Infrastructure Limited

Responsible for bulk water transmission; it purchases water from SSNL and transfer it
to GWSSB and urban local bodies

Regulatory Framework for Water Management in

Gujarat
Gujarat Urban Development Company Limited (GUDC)

Responsibility of urban infrastructure including water supply and sanitation

Oversee water harvesting activities, maintenance of lakes and other conservation

activities

Maintain storm water drainage canals

Monitoring body for Ahmedabad Municipal Corporation, Surat Municipal Corporation

and Rajkot Municipal Corporation and other urban local bodies

Gujarat Irrigation Department, Gujarat Geological Branch and Gujarat Water Resources
Department are other important Government bodies manning this sector in Gujarat.

Business Opportunities in Water Sector in Gujarat

Key Drivers for growth of Water and Sanitation Sector

Limited availability of water in many areas coupled with regional rainfall disparity is
leading to search for unconventional sources of water

Rapid urbanisation/ industrialisation

Increasing restrictions on ground water usage

Poor state of current water infrastructure/ absence of last mile infrastructure in may
places

Government support for water project & favourable regulatory environment

Newer business models (BOT/ BOOT etc.) and niche service offerings (Operations
and maintenance contracts etc)

Water Value Chain

Water
Extraction

Water
Treatment

Water Supply
& Distribution

Wastewater
Collection

Wastewater Recycling

Wastewater
Treatment

Wastewater
Disposal

Attractiveness of Segments in Water Value Chain

Water Extraction

Segment refers to the extraction of water from sources

Segment includes dams, barrages and large storage reservoirs besides bulk water
transmission network (Canals)

Pumping stations that are required to transfer water upstream or pump it to long
distances.

Newer opportunities in this segment are lift irrigation schemes

Segment is almost entirely controlled by the Government which dictates the

investments.

Private sector opportunity is limited to civil works required for constructing the
require infrastructure works

Attractiveness of Segments in Water Value Chain

Water Treatment

The key enabler in this segment is the tightening of standards for human
consumption (standards specified by CPHEEO)

Need for high purity water in industries like food processing and thermal power
plants

Technology used in this segment are fairly standard leading to high levels of
competition in this segment

Most projects are in EPC space, a growing number of water treatment projects are
being awarded as part of a BOT project comprising of an integrated project for water
supply and distribution.

Attractiveness of Segments in Water Value Chain

Water Supply and Distribution

Segment involves the setting up of a pipeline network in urban settlements or in

rehabilitation and repair work carried out on existing pipelines.

Segment has been the most active segment in PPP projects as the urban local
bodies are looking at realising their commitments to provide water supply to their
population through joint efforts with private players.

Concerns about the PPP projects economic viability are being addressed in newer
PPP models that encompass management and service contracts to long-duration
BOT/ BOOT projects

Attractiveness of Segments in Water Value Chain

Waste Water Collection Network

Segment consists of developing wastewater infrastructure and also upgrading the

existing waste water collection network

Waste Water Treatment Plants

Key enabler in this segment is the growing realisation of the harmful effects of
environment pollution which has led to strict regulations that clearly specify
discharge and water consumption norms

Pitiful scale of treatment levels for both domestic and industrial wastewater had led
to growing investments in this space.

Growth in this sector has been aided by the advent of newer, improved and
economically viable technologies

Customers for this water segment include municipalities that require treatment of
domestic sewage and industries that generate wastewater consisting of harmful
chemicals

Attractiveness of Segments in Water Value Chain

Waste Water Recycling

Key enabler in this segment is the growing shortage of freshwater resources,

particularly for industries and rising costs of input water.

Enhanced standard for discharge have already created a market for wastewater
treatment systems.

Cost benefit analysis of wastewater recycling setup over the lifecycle of the plant is a
key enabler as recent advancements are proving the utility of using the recycling
equipment to meet the water needs.

Foreign players, with their advanced technologies, are key beneficiaries of the growth
in this segment.

Besides these segments, private players can find also emerging opportunities in niche
segments like micro irrigation (equipment manufacturing) and desalination (technology
offering or project developer)

Potential Investment in Water Sector in Gujarat

Bulk Water Transmission Project total potential is about INR 3,00,000 million on 25
year cycle

Management of Water Distribution total estimated potential INR 2,000 million per
annum

Comprehensive data acquisition and online water quality monitoring total estimated
potential for about 10000 km network to start with

Energy efficiency in bulk water and water distribution transmission projects total
potential is about INR 200 million per annum

Investment Opportunities in Gujarat

Immediate Opportunities
Water and Waste Water

Total Augmentation capacity of 225 MLD in Jaspur and Raska WTPs - Ahmedabad

Total 100 MLD planned additional WTP capacity Vadodara

Solar plant at Kotapur Ahmedabad

90 MLD WTP planned under EPC mode Surat

Several new STPs & Sewerage network planned with estimated investment of INR 267
Cr Vadodara

Combined opportunity in 4 STPs for 200 MLD with estimated investment of INR 180 Cr
Surat

Tertiary treatment plants 60 MLD with estimated investment INR 100 Cr Surat

STP at Gauridad of 70 MLD, Raiya of 56 MLD Rajkot

Extension of Madhar STP 45 MLD under BOOT basis - Rajkot

Thank You