How can India Enable Circular Economy in Used Water Management?

REPORT

Enabling Circular Economy in Used Water Management in India

A Municipal Index for Assessing Urban Local Bodies’ Performance

12 March, 2024 | Circular Economy, Sustainable Water

Saiba Gupta, Kartikey Chaturvedi, Ayushi Kashyap, and Nitin Bassi

Suggested citation: Gupta, Saiba, Kartikey Chaturvedi, Ayushi Kashyap, and Nitin Bassi. 2024. Enabling Circular Economy in Used Water Management in India: A Municipal Index for Assessing Urban Local Bodies’ Performance. New Delhi: Council on Energy, Environment and Water.

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Overview

This study develops and computes a first-of-its-kind municipal index for evaluating the performance of Indian urban local bodies (ULBs) in used water management. ULBs, being the main authorities responsible for managing urban domestic used water, are the focus of the index. Such an evaluation can provide them with information on areas that require improvement and enable them to formulate strategies to mainstream used water treatment and reuse in Indian cities.

Untreated used water (domestic sewage) is discharged into rivers and lakes, leading to high levels of pollution, which is especially concentrated in the river stretches passing through urban areas. Used water, with safe treatment and reuse, is a highly valuable resource. CEEW estimates suggest that by 2050, over 96,000 million litres per day of treated used water (TUW) will be available for reuse in India.

The objective of this index is to mainstream the reuse of TUW at the ULB level. For this purpose, 503 ULBs from class I (population above 1,00,000) and class II (population of 50,000–99,999) cities of 10 Indian states that have adopted a TUW reuse policy were selected. The states include Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Punjab, Rajasthan, and West Bengal. The ULBs were scored based on an assessment framework developed consisting of 5 themes (Finance, Infrastructure, Efficiency, Data & Information, and Governance) with a total of 25 parameters under them. Based on their composite scores, the ULBs were classified into award categories: Aspiring, Promising, Performing, Leading, and Outstanding, from lowest to highest scores.

Key Highlights

Over 80 per cent of the ULBs assessed collectively fall under the promising and performing categories (below average to average scores).
Surat and Bengaluru top the index. The formulation of dedicated action plans for used water management at the ULB level is a key enabler of their noteworthy performance.
Governance and data & information are two key areas that require improvement at the ULB level. None of the ULBs have qualified as outstanding under these two themes.
Almost half of the ULBs assessed have made substantial progress under infrastructure, having developed the primary infrastructure required for used water management. However, efficiency parameters such as energy efficiency, used water treatment capacity utilisation, and quality of TUW are yet to be integrated with infrastructure planning.
Financial planning and investments in used water management are currently in the nascent stage in 90 per cent of the ULBs assessed.
Out of the 10 states assessed, Haryana and Karnataka have secured the top two positions. They have prioritised certain themes, such as infrastructure and efficiency across all ULBs, leading to a high state-wide performance on the index.
Western and north-western states (Haryana, Punjab, Rajasthan, and Gujarat) are leading in used water management, with eastern states (West Bengal and Jharkhand) catching up.

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Saiba Gupta

Programme Associate

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"A first-of-its-kind, the Municipal Used Water Management Index sets the baseline for more than 500 ULBs in India. The performance evaluation through the index can inform decision-making and planning towards the implementation of a circular economy approach to urban used water management. This will contribute to Sustainable Development Goals 6 and 12 targets related to water quality and circular economy, respectively."

Executive summary

In 2021, Indian cities generated over 72,000 million litres of used water (domestic sewage) per day, of which only 28 per cent was actually treated (CPCB 2021). The remaining used water was discharged into natural water bodies, such as rivers and lakes. This is one of the main reasons for high levels of pollution in Indian rivers during non-monsoon months. The pollution load is concentrated in the stretches of rivers passing through urban areas, especially metropolitan cities. Further, the problem of water security is severe in rapidly growing urban areas, where there is increasing pressure on existing freshwater resources to meet the growing water demand. Given the quantum of used water generated in the country, reusing treated used water (TUW) can reduce the pressure on freshwater resources and water demand-supply gap, and improve the water environment in urban areas. Bassi, Gupta, and Chaturvedi (2023) estimate that sewage treatment capacity will be 80 per cent of sewage generation by 2050, making over 96,000 million litres per day of TUW available for reuse in India.

Used water management, therefore, needs to be prioritised as an essential urban service. Urban local bodies (ULBs), which are the implementing authorities responsible for developing and maintaining used water infrastructure and service delivery in Indian cities, need to align with SDG 6.3: “By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally.” In this context, the Government of India has recently undertaken various initiatives that focus on urban areas, to strengthen used water treatment and promote its reuse, and work towards water pollution abatement. Some of the important ones include the Namami Gange Programme and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

Objective of the Municipal Used Water Management index

Considering the importance of TUW, the objective of this research study was to develop and compute the Municipal Used Water Management (MUWM) Index for ULBs in India, to assess their performance in used water management. For this purpose, 503 ULBs from class I (population above 1,00,000) and class II (population of 50,000–99,999) cities in 10 Indian states that have adopted a TUW reuse policy were selected. The states were Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Punjab, Rajasthan, and West Bengal. These progressive states had adopted reuse policies prior to the formulation of the National Framework on Safe Reuse of Treated Water (SRTW), launched in January 2023 by the National Mission for Clean Ganga (NMCG). As a first-of-its-kind, the MUWM Index highlights the progress made by ULBs in implementing a circular economy approach to urban used water management in India.

Methodology for the development and computation of the ULB-level MUWM index

To assess the performance of the selected 503 ULBs in the management of used water, a MUWM assessment framework was developed. The framework is based on a themes– parameters–indicators (TPI) approach, consisting of 27 indicators under 25 parameters across 5 themes. The themes and parameters are presented in Figure ES1.

Figure ES1 MUWM assessment framework

Source: Authors’ analysis

Each of the 25 parameters has one or more corresponding indicators that were used to compute the MUWM index. The indicators are both quantitative and qualitative in nature and are used to assign a score to the ULB, based on its performance in the corresponding parameter. The composite score computed for each ULB is on a scale of 0–5. The methodology used to compute the composite score for the ULBs is shown in Figure ES2.

Figure ES2 Methodology for computing the MUWM index composite score

Source: Authors’ analysis

Key findings

Based on their index composite scores, the 503 ULBs were classified into five award categories, reflecting their performance in used water management (Figure ES3). The categories are Aspiring, Promising, Performing, Leading, and Outstanding, with Aspiring representing the lowest scoring ULBs and Outstanding the highest. The score ranges for the award categories are based on the minimum and maximum composite scores achieved by the ULBs on the MUWM index. Further, the thematic assessment of ULBs is based on theme scores, calculated by aggregating the normalised scores of the individual parameters under each theme. State performance assessment is based on the state scores, calculated by taking the arithmetic mean of the aggregated composite scores of all ULBs considered in that state.

Figure ES3 Key findings of the MUWM index

Source: Authors’ analysis

(I) ULB performance as per the MUWM index composite score

52 per cent of ULBs fall under the ‘promising’ category as per the composite score
Of the 503 ULBs assessed, 264 (52 per cent) are categorised as promising (Figure ES3), which indicates that these ULBs have acknowledged used water management as a key focus area and are making efforts to mainstream reuse. However, their efforts are currently scattered, and they require a more holistic approach. Of the remaining ULBs, 151 (30 per cent) are categorised as performing, 47 (9 per cent) as leading, 39 (8 per cent) as aspiring, and only 2 (less than 1 per cent) as outstanding.
Surat and Bengaluru top the MUWM index
Two of the 503 ULBs assessed, namely Surat Municipal Corporation (SMC) and Bruhat Bengaluru Mahanagara Palike (BBMP), are categorised as outstanding on the MUWM Index (Figure ES3). As per our analysis, the formulation of a dedicated action plan for used water management at the ULB level is a key enabler of their noteworthy performance. For instance, Surat has developed an action plan for the treatment and reuse of used water, which sets reuse targets for the city. Similarly, Bengaluru has formulated a comprehensive vision document for water management in the city, with quantitative and qualitative targets for sewage management.

(II) Thematic assessment

There is a need to focus on ‘governance’ and ‘data and information’ to improve used water management
According to the theme scores, 392 ULBs (78 per cent) and 246 ULBs (49 per cent) are categorised as promising under ‘governance’ and ‘data and information’, respectively (Figure ES3). This indicates that although efforts are being made under these themes by the majority of ULBs, these initiatives need to be strengthened further to make any substantial on-ground impact. Moreover, none of the ULBs are qualified as outstanding under these two themes.
Almost half of the ULBs assessed have made substantial progress under ‘infrastructure’
Around 46 per cent of ULBs (230) are collectively categorised as performing and leading under the infrastructure theme (Figure ES3). This is the maximum number of ULBs under both these categories across all five themes. Hence, a considerable section of ULBs assessed have developed the primary infrastructure required for used water management.
Parameters under ‘efficiency’ need to be considered during infrastructure planning across ULBs
Almost 60 per cent of ULBs (295) are categorised as aspiring under the efficiency theme (Figure ES3). This indicates that parameters such as energy efficiency, used water treatment capacity utilisation, and quality of TUW under the efficiency theme are yet to be integrated with the infrastructure planning for used water management.
Targeted financial allocations are required for efficient used water management
About 90 per cent of ULBs (449) are collectively categorised as aspiring and promising under ‘finance’ (Figure ES3). This trend suggests that financial planning and investments in used water management are currently in the nascent stage, even in ULBs that have adopted state-level policies on used water treatment and reuse.

(III) State-wise performance as per the composite score

Western and north-western states and Karnataka are leading in used water management
Haryana and Karnataka have secured the top two state ranks, with scores of 1.94 and 1.74 out of 5, respectively (Figure ES4). These states have implemented comprehensive graded action plans for used water treatment and reuse. They have prioritised certain themes such as infrastructure and efficiency across all ULBs, leading to high state-wide performance on the MUWM Index. Punjab and Rajasthan follow on, in third and fourth positions, with scores of 1.71 and 1.57 out of 5, respectively.
States in eastern India are catching up on used water management
In 8 out of 10 states, 85 per cent of ULBs collectively fall under the promising and performing categories. Notably, in states such as Jharkhand and West Bengal, nearly 90 per cent of ULBs belong to these categories, indicating significant progress in certain themes, with a long way to go to achieve comprehensive used water management.
The regular publication of performance reports can improve the accuracy of performance assessments of urban services across states
Chhattisgarh, Madhya Pradesh, and Andhra Pradesh are the bottom three states, with scores of 0.84, 1.01, and 1.07 out of 5, respectively (Figure ES4). These states have not put out compiled service-level benchmarking (SLB) performance reports in the public domain, in accordance with Ministry of Housing and Urban Affairs (MoHUA) directives. Thus, the lack of available data has affected the accuracy of performance assessments in these states, leading to low state-wide performance on the MUWM Index.

Figure ES4 Haryana and Karnataka are the top scoring states

Source: Authors’ analysis

Conclusion and recommendations

Majority of the ULBs assessed using the MUWM Index have made notable progress in some aspects of used water management and are undertaking significant interventions to improve their performance. However, the reuse of TUW is an essential component of urban used water management, and is yet to be mainstreamed in Indian cities. The following are recommendations for mainstreaming the circular economy approach to urban used water management.

Empower ULBs to adopt long-term reuse plans: The AMRUT 2.0 recommends the development of a city water action plan (CWAP) focusing on used water treatment and reuse, with the aim of meeting 20 per cent of the city’s water demand through the reuse of TUW. ULBs, as the main implementing authorities, need to be empowered to formulate and adopt long-term, city-level reuse plans, with financially sustainable provisions for implementing reuse projects. These plans should align with the guidelines of the National Framework on SRTW and state-level reuse policies.
Enable the development of a comprehensive database to strengthen MUWM: Access to updated and reliable data is essential to update existing reuse policies or formulate reuse plans. The comprehensive MUWM assessment framework allows ULBs across the country to maintain a baseline database for used water management. Also, performance assessments using the MUWM Index can provide ULBs with information on areas that require improvement, and enable them to formulate strategies to strengthen used water management in their jurisdictions. The index can hence be developed annually, based on a dynamic data inventory that is updated regularly with the support of ULBs.
Leverage existing national initiatives for used water management: The progress of ULBs in terms of performance in used water management can be utilised by central and state governments as a criterion to provide incentives to local governments. Additionally, it can contribute to the Government of India’s approach to mainstreaming river-centric urban planning, wherein reducing the demand for freshwater and abating pollution through effective used water management are important components.
Promote healthy competition among ULBs: The 503 ULBs selected for this assessment belong to the 10 Indian states that have adopted TUW reuse policies. The implementation of these policies is a prerogative of local governments. Performance evaluations using the MUWM Index can foster a healthy sense of competition among ULBs, and help achieve the larger objective of mainstreaming used water treatment and reuse in cities.

FAQs

How is wastewater treated?

Used water (from toilets, kitchens, bathing/washing) is transported through a piped sewerage network to sewage treatment plants (STPs) which are operated and maintained by local governments.
Where can treated wastewater be used?

Based on the level of treatment, it can be reused for various non-potable purposes such as parks and gardens, irrigation, road cleaning, vehicle washing, construction, industries, and waterbody rejuvenation, to name a few.
What is the city-level authority for water management?

Urban local bodies (such as municipal corporations and municipal councils), commonly known as municipalities, are the primary authorities responsible for water management in urban areas.
How can used water management at the city-level be improved?

Urban local bodies should be empowered to formulate and adopt long-term used water reuse plans with clearly defined priorities and targets. This is an essential step for mainstreaming used water treatment and reuse in Indian cities.