Water management in Industry Sector Paper

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Sectoral Working Paper

Contents

Chapter Topic Page No

Preface iList of Tables & figures ii

I Introduction to Water Use and Managementin Indian Industry

Background 1The water cycle 1Industry water use and management 3

II Issues in Industry Water Use andManagement

The emerging water crisis 6The Issue of Water Supply 7The Issue of Water Quality 8Approaches to Industrial Water

Conservation and Management

11

Technological approach 12Socio-economic approach 13Policy approach 15

Pointers to a sustainable watermanagement policy

17

Case examples 20-27III Conclusion 28

Introduction 28Policy model for sustainable water use andmanagement in industry

29

The key elements of the policy 30

References 34

!""#


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i

Preface

This paper discusses the status and options for sustainable water use and managementpolicy in Indian industry. The paper is divided into three chapters.

Chapter 1: Introduction to Water Use and Management in Indian Industry

Provides a background to the status of water use in industry in India and in the world.

Chapter 2: Issues in Industry Water Use and Management

This chapter discusses the issues confronting water use in Indian industry namely theissue of water quantity (supply) and quality. The various approaches adopted in theIndian context are also discussed from the viewpoint of technological, socio-economicand policy perspectives.

The chapter ends with a discussion on plausible inputs to be included in any proposedwater management policy.

Chapter 3: Conclusion

The framework of a proposed policy framework for sustainable water management inindustry is described.

The paper cites analysis and data from various sources. The cited references arenumbered and appear in the text as square brackets in bold e.g. [1] refers to thereference number 1 on the references page at the end of the paper.

Note

1. Grey Boxes: In the first two chapters, the salient points emerging from thediscussion, which can be used in a plausible policy framework proposed inchapter three, have been separately highlighted in grey shaded boxes.

2. The cited references have been reproduced to exemplify the variousperspectives to the discussion. The Confederation of Indian Industry does notsubscribe to the views expressed by these sources and to any interpretationbased on these sources.


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ii

List of Tables & figures

Page no

Tables

Table 1: Various applications of water in industry 3

Table 2: Industrial water use by industry sector 4

Table 3: Comparison of specific water consumption in major water

consuming industry sectors

5

Table 4: Projected water demand (in bcm) 6

Table 5: Industry sectors contribution to overall water pollution 9

Table 6: Water cess rates 15

Table 7: Water cess costs as percentage of power generation cost 16

Figures

Figure 1: Hierarchy of water management in industry 29

Figure 2: Policy Framework for Sustainable Water Management in

Industry

32


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Chapter 1: Introduction to Water Use and Management in Indian industry $

Chapter 1: Introduction to Water Use and Management in Indian Industry

The ability to see, hear and speak are useless in the absence of adequate water. Water

is the basis of life. Most life forms are born in water and live in it. O water stream come

near me. You are the elixir of immortality.

Artharvaved, 3:13:6

Background

Water is a prime natural resource, a basic human need and a precious asset, in the

absence of which no socio-economic developmental activities can sustain. On a global

scale, there is no shortage of water, since more than 70 % of our planet is covered with

water. Of some 1386 million km3 of water on earth, just 2.5 % is freshwater, the

remaining being salty seawater. Even from the total freshwater reserves on earth, only

0.26% (93,000 km3) is accessible by terrestrial life forms (humans, animals, vegetation,

lower organisms) [1]. The accessibility largely depends on the vagaries of the water

cycle.

The Water Cycle

The water on earth is not static but participates in a cycle maintained by solar energy

and the rotation of the earth. Surface water is evaporated from the earth by the energy of

the sun. The water vapour forms clouds in the sky. Depending on the temperature and

the weather conditions, the water vapour condenses and falls to the earth as

precipitation. Some precipitation runs from high areas to low areas on the earths

surface, in the form of rivers or streams, feeding the oceans or lakes to complete the

cycle.

The amount of renewable water available for terrestrial activities depends on the

precipitation (119000 km3) on land. Over two-thirds of the precipitation eventually

evaporates, while the rest (47,000 km3) enters the groundwater stocks, rivers and lakes.

Most of this precipitation falls in areas of low habitation and hence flows back into the

oceans. Hence, from the available 47,000 km3, mankind can use only 9000 km3 [1].

However, this fresh water is unequally divided geographically, as well as over time.


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Chapter 1: Introduction to Water Use and Management in Indian industry !

India is a classic example of this dependence on the vagaries of the water cycle. India

receives an annual precipitation (snowfall and rain) of around 4000 bcm1. Of this, the

run-off accessible water- is 1,869 bcm, of which barely 690 bcm is used. Nearly 1,179

bcm of the water drains into the sea, much of it in the 100 days that define Indias wet

season. Indias water problems stem from the geographically disparate

precipitation and the fact that while nearly 70% of precipitation occurs in 100 days,

the requirement is spread over 365 days [2].

Further, if the utilizable water resource is defined as the quantum of withdrawal of water

from its natural place of occurrence. The Ministry of Water Resources, Government of

India (1999) assessed the utilizable annual flow as 690 bcm and the utilizable

groundwater resources at 396 bcm. It is from this utilizable flow that the water demand

has to be met.

The water demand is usually sub-divided into domestic, industrial and agricultural

demand. Worldwide, agriculture demand is the highest, followed by industry and

domestic demand. For India the break up of fresh water use is, agriculture 90%, industry

6% and domestic users 4% of the countrys freshwater [2]. Of the 150 bcm of

groundwater tapped every year in India, 89% is used by agriculture, 9% for drinking

water and 2 % by industry. This water demand is projected to increase nearly 1.7 times

by 2047 (Table 4, page 6). Clearly strategies and means of augmenting the water

resources are required.

Emergent policy direction

Augment and harness the utilizable water resources

11 bcm = 1 billion m

3= 10

9m

3= 1 km

3


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Chapter 1: Introduction to Water Use and Management in Indian industry #

Industry Water Use & Management

Over the past century, there have been three major drivers to the enormous expansion

of water-resources infrastructure:

Population growth

Industrial development and

Expansion of irrigated agriculture

Water because of its versatile physico-chemical properties, fulfils many different

functions, such as:

Essential reactant for organisms Environment for aquatic organisms

Drinking water for animals and human beings

Utility in household and industry and

Power supply (steam and water power, coolant)

For industry, water is an attractive substance because of its physico-chemical properties,

its relatively low price and its abundant availability in most parts of the world, finding

uses, such as those listed in Table 1.

Table 1: Various applications of water in industry

!

" #


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Chapter 1: Introduction to Water Use and Management in Indian industry %

Especially for washing, cooling and rinsing purposes, industry uses relatively large

quantities of water. Table 2 depicts the relative consumption of freshwater by industrial

sectors in India. As can be observed, cooling accounts for some 90% of the total

industrial water consumption.

According to the Central Pollution Control Board (CPCB), in 2001, Indian industry

consumed 40 bcm of water and discharged 30.31 bcm of wastewater. Hence, about 75

% of the water used in major water-consuming industries is ultimately discharged as

wastewater.

Table 2: Industrial water use by industry sector

Source: Down to Earth, June 15, 2003, Centre for Science and Environment, India

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After use in a process, water generally contains components which deteriorate its quality

in such a way that the water cannot be re-used in the process without treatment,because it would lead to negative effects on product quality or production cost.


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Chapter 1: Introduction to Water Use and Management in Indian industry &

Table 3: Comparison of specific water consumption in major water consuming industry

sectors

Source: Down to Earth, June 15, 2003, Centre for Science and Environment

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In industry, the main water pollution occurs by extensive conditioning and cleaning

activities and in processes, where water is in direct contact with water-soluble

components. For these reasons, in many cases, water is used only once, and then

requires some degree of treatment before it can be discharged either to a municipal

sewer or to the receiving water (which because of poor enforcement, is generally

compromised upon). Hence, when compared to global benchmarks (Table 3), the

specific water consumption in Indian industry is very high. Thus, disposal of

wastewater can represent a major industrial process cost. The availability of reclaimed

water can foster more efficient water use practices that translate into significant cost

savings for many industries.


Strengthening mechanism for enforcement of effluent disposal norms

Provide incentives to industry to reduce specific water consumption. This could

be in the form of economic concessions on adopting cleaner production, rewards

like reduced water cess on reducing by a certain specific water consumption


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Chapter 2: Issues in Industry Water Use and Management '

Chapter 2: Issues in Industry Water Use and Management

Optimal sustainable development, maintenance of quality and efficient use of countrys water

resources to match the growing demands on this precious natural resource with active

involvement of all stakeholders in order to achieve accelerated, equitable economic

development of the country.

Vision for the 21st Century

Ministry of Water Resources, Government of India

The Emerging Water Crisis

In chapter one, we have discussed the status of water as an important factor of production in

industrial processes, like energy and labour. The water demand depends on, what is being

produced and the efficiency with which it is produced.

The gross domestic product (GDP, sum of value added from the primary, secondary and

tertiary sectors) is one of the key indicators for understanding a countrys resource

requirements and sources of pollution. One of these key resources is water. For example for

India, the GDP growth for 2003-04 has been 8.1 %. Industry accounts for about a quarter of

the GDP. Bountiful monsoon rains in 2003 have caused a dramatic recovery in farm

production and the bumper harvest in turn has boosted the demand for industrial goods and

aided industrial output growth (Central Statistical Organization, April 2004). These facts

clearly establish the inter-/ intra-sectoral links in-between water availability and industrial

growth. Table 4 details out the projected water demand in industry and other sectors.

Table 4: Projected water demand (in bcm)

(Source: Green India 2047- DISHA, pp 23, The Energy and Resource Institute, 2000)

" # $ % &

1997 23.516 540.996 1.604 0.875 564.908

2019 35.534 780.553 3.792 2.790 819.7412047 50.488 988.445 7.152 9.019 1048.986

1997-2047 1.5% 1.2% 3.0% 4.8% 1.2%

Assuming a modest 5 percent overall GDP growth scenario, pegging industrial growth at 5.9

percent and assuming that water consumption would remain constant, the industrial water

demand including that for power generation is expected to increase by 13.6 bcm within the


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Chapter 2: Issues in Industry Water Use and Management (

next 40 years [Table 4]. It is worth noting that the industry water demand by then would

quadruple and that by the power sector by a factor of ten. Such growth trends in water

consumption are likely to have significant cost implications for industry.

At present water for industry use is available at less than Rs 1 per kilolitre, which is almost

free, (Table 6, page 15) however with rising shortages industry will soon be forced to

acquire water from alternate sources at prices- upto 10 times the current levels-that reflect

the shortage situations. Such trends have already been witnessed, companies in Gujarat

and Tamil Nadu are already paying third parties Rs 10-30 / kL for process water. These

costs may prove to be an albatross for industry competitiveness. For example, the future

growth of the textile cluster of Tirupur in Tamil Nadu hinges on the water price. After

procuring water at an average price of Rs 30 / kL, the industry incurs a huge expense

treating the water. The final cost comes to Rs 70-80 per kL of water.

Even instances of production being disrupted due to water shortage exist. In 1996, water

shortage forced Grasimss viscous staple fibre plant in Nagda (Madhya Pradesh) to remain

shut for 46 days, causing a 17 % drop in net profit (Source: Business World, 7 June 1997).

Madras Fertilizers had to stop production for eight months between 1992-1994 due to water

shortage. Several other examples can be cited of production stopping or slowing down due

to inadequacy of water. It is quite clear that any disruption in water supply either in

quantity or quality or both would impede further industrial development.


Mechanism required for appropriate pricing of water for industry

The Issue of Water Supply

Today water shortages are becoming more frequent and widespread and industry (as well

as society) is beginning to pay the price for the relentless exploitation of water resource, and

the cost (including that of inaction!) is mounting steeply. The degree of water stress in India

can be gauged from the fact that the real reason for some thermal power plants having low

plant load factor is not due to breakdown or inferior coal quality but due to non-availability of

water.

To put the situation in perspective, from a high of 5277 cubic metres in 1955, estimates of

the annual per capita availability of renewable fresh water by the Central Water Commission

project a decline from a current level of 2499 cubic metres to 1520 cubic metres by 2047.


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Chapter 2: Issues in Industry Water Use and Management )

The per capita water availability below 1700 cubic metres is labeled as a water stress

situation, that below 1000 cubic metres as one of water scarcity and that below 500 cubic

metres as absolute scarcity. India is projected to be heading towards an overall water

stress situation by 2050.

Moreover, the Ganga plain belt, Gujarat, Maharashtra, West Bengal and the Deccan

plateau, as of today water stressed areas would plunge to areas of water scarcity (< 1000

cubic metres) by 2047. These water scarce regions are the hubs of industry in India.

This shall also take its toll on economic development. A recent study (Investment Climate in

India, 2003) by the Confederation of Indian Industry and the World Bank has found that

scarcity of water in Tamil Nadu is proving to be a major infrastructure bottleneck and a

hurdle for investments in the state.

The news from the other sectors is equally grim. For example, in the case of agriculture,

India already has more irrigated land than any other country, including China and more

groundwater irrigation than all the rest of the world, 80 million hectares irrigated land, out of

which 40 million is from groundwater [3].

It does not help that the National Water Policy, 2002, places industry at the bottom of its

water allocation priorities while planning and operation of systems. The competing sequence

of priorities being: drinking water, irrigation, hydro-power, ecology, agro-industries and non-

agricultural industries, and Navigation and other uses.

The Issue of Water Quality

Postindependent India embarked on an ambitious pace of industrialization. Between 1963

and 1991, industrial output in India quadrupled, growing on an average by about 5.5%

annually. Environmental pollution also rose steadily and often faster than industrial growth

e.g. release of toxic pollutants during the same period grew six-fold, at approximately 7%

annually [3].

Most of the water intensive industries often form clusters because, generally, few locations

meet the criteria for siting such industries. The choice of a location is restricted by availability

of one or more key resources e.g. ore, water etc. However, from the industry perspective,

such clustering sows the seeds of potential water stress situations, as with time, competing

demands from agriculture and domestic sectors find precedence over industry demand, as

also stated in the National Water Policy, 2002.


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Chapter 2: Issues in Industry Water Use and Management *

The problem with regard to water is not only related to its availability, but also in

terms of its quality. Most of the intensive water-use industries viz. Textiles, fertilizers, steel,

chemicals, food products etc contribute substantially to the countrys GDP. Infact a study for

China revealed that industry generates more than 60 times value, as compared to

agriculture for the same quantity of water use (Source: The World Bank).

However, at the same time contribution of these sectors to pollution and intensive resource/

depletion is often disproportionate to their industrial output e.g. industrial chemicals, food

products and paper and pulp together account for just about 25 % of the industrial output,

but are responsible for as much as 85% of the water pollution load (Table 5).

For instance, Sanganer in Rajasthan famous for its hand block printed fabrics, now finds

itself in an ecological crisis of its own making. The direct discharge of effluent generated

from the dyeing process to the towns main irrigation source over the last three decades has

polluted the ground water and is suspected to be the cause behind increasing serious health

afflictions. This is a common scenario in the case of small and medium enterprises (SMEs).

The state of affairs is also reflected by the number of factories who have taken measures for

water pollution abatement, at just 13.09 per cent [4].

Table 5: Industry sectors contribution to overall water pollution

(Source: Parivesh Newsletter, Central Pollution Control Board)

+,-. /01-

1,-233,2+

Industrial chemicals 29

Non-ferrous metals 10

Other chemicals 1

Food products 38

Paper and pulp products 19

Petroleum refineries 2Textiles 1

Total 100

Structural shifts at the global level and the opening-up of the Indian economy post-1991, has

brought marked redeployment of water intensive industries such as textiles, leather, iron


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Chapter 2: Issues in Industry Water Use and Management $"

and steel, industrial chemicals and petrochemicals from the developed countries to the

developing nations, like India.

Indian industry has responded to such developments and in the next section, we shall

discuss the measures adopted by industry for water conservation and management.

However, with the future portending a grim situation, the challenge before policy planners is

to step ahead of the looming crisis by providing a policy environment to industry (and other

sectors) to employ more efficient water management approaches.


Guidelines for siting new industry should take into account the water stress potential of the

site. For such hydro-hot spots special guidelines be issued


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Chapter 2: Issues in Industry Water Use and Management $$

Approaches to Industrial Water Conservation and Management

Indian industry is already hard pressed to meet the water requirements and the writing on

the wall is quite clear, sooner than later government and industry would have to initiate

enforcement of water use discipline (efficiency), just like fiscal discipline.

The shape of policy instruments to enable such water efficiency should incorporate

learnings from the experiences and studies in judicious water management by industry.

Inspite of the absence of government policies, major efforts to improve water efficiency

are taking shape based on industry-based initiatives. An ever-growing number of

businesses are implementing projects because of the benefits of assuring water supply and

reducing clean-up costs.

Here, technological innovation will play an important role. Where water is plentiful and

inexpensive, there may be virtually no incentives for water efficient technology. However, to

reduce demands for new water supplies, high water productivity remains an important goal.

For example, Industrial output in Japan has steadily risen since 1970s, while total industrial

water use has dropped more than 25%. In 1965, Japan used nearly 48,000 cum water to

produce a million dollars of output, by 1989; this had dropped to 13000 cum per million

dollars of output (in real terms)- a tripling of industrial water productivity [5].

Similar trends have been reported from California, USA. In 1979, it took an average of

13, 500 cum of water to produce a million dollars of industrial output, by 1990 this figure had

dropped to under 7,400 cum. Similar trends are also beginning to manifest in Indian industry.

For example, specific water consumption (m3 / ton steel) in Tata Steel has witnessed a

marked decline, from 10.93 in 1999 to 7.31 in 2003, after adopting extensive recycling of

treated wastewater and water augmenting by rainwater harvesting (Source: Environmental

Performance Report, Tata Steel - Jamshedpur, 2003).

The approaches adopted for water use efficiency in industry can broadly be

categorized into three levels, technological, socio-economic and policy. In whatfollows, is a review of these three enabling approaches, illustrating case examples of the

best practices within Indian industry. The detailed case examples are reproduced separately

at the end of this chapter 2.

The intent of the discussion is not to describe the specific techniques adopted by industry

but to analyze the approaches being adopted for arriving at a solution to the industrys water


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Chapter 2: Issues in Industry Water Use and Management $!

problem. These emergent approaches (in grey boxes) would help in suggesting inputs for a

policy framework for sustainable water use and management in industry.

Technological approach

Technological approach refers to the methods adopted by industry to achieve the desired

degree of contaminant removal or destruction, the operability of each process, and

appropriate application of process controls. So far, water management in Indian industry has

revolved around two basic aspects:

Raw water treatment to meet end-use requirements and

Effluent treatment for meeting discharge standards

To successfully confront the challenges of water quality and quantity, Indian industry will

have to aim at zero freshwater demand and zero effluent discharge. Noteworthy

examples of such innovation do exist: the Chennai Petroleum Company Ltd, for instance,

treats municipal sewage to meet its process water requirements and is on its way to close its

water cycle. As another example, the thermal power plant of Indian Aluminum Company,

Limited (INDAL), Hirakud, Orissa has optimized cooling tower operation and is utilizing the

blowdown for coal and ash pond spraying and is virtually operating under zero discharge.

On analysis of the case examples reproduced separately at the end of this chapter, one can

summarize that industry generally employs one or more of the following methods for water

management:

Improvements in process technology; by adding water-efficient technologies

Recycling, reuse and renovation2 of process water

Re-circulation of water; for indefinite use of non-consumption water like cooling water

and steam condensate for the same purpose after treatment

Rainwater harvesting; collecting water within the plants rainwater endowment, for low

water-consuming industries, it could meet their entire requirements

2Note:

Recycling: refers to the use of treated wastewaterReuse: refers to the use of wastewater with no or little treatmentRenovation: treatment to the tertiary level so that it is fit for use like fresh water


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Chapter 2: Issues in Industry Water Use and Management $#

It must also be highlighted that from the viewpoint of a business; core to the adoption of

water management in the cited examples is the instinct for economic efficiency and business

continuity.


Enable assured water supply for business continuity

Mechanism for Information & access to water clean technologies especially for SMEs

Socio-economic approach

Socio-economic approaches refer to involving the stakeholders like employees; immediate

community etc in developing strategies toward minimizing the investment costs, operating

and maintenance costs, enhancing water savings and any associated savings in energy, raw

materials (e.g. in paper industry fiber is recovered). For example, in 1996 severe water

shortage forced Grasimss viscous staple fibre plant in Nagda (Madhya Pradesh) to remain

shut for 46 days, causing a 17 % drop in net profit. Through interaction with their

stakeholders the company developed and implemented water management initiatives in the

plant (see case study for details). During similar situations subsequently the plant remained

in operation, avoiding loss on turnover to the tune of Rs 200 crores per annum, without

considering the multiplier effect from downstream industries and social impact on the local

community.

In the case of Kitply Industries limited, the largest and most reputed name in Indian wood

based industry sector, they developed wasteland in Chattisgarh state, by planting trees.

Especial emphasis was given to address various socio-economic problems of people in

project area, who were mostly landless, marginal farmers and such other traditionally

economically backward communities. This also resulted in improvement and stabilization of

ground water regime especially during summers.

In a majority of industries, such efforts have by and large been voluntary initiatives, often

implemented under the aegis of an environmental management system such as ISO 14001.

Not only did this aid in sustaining employee morale within the industry, but also helped in

strengthening community ties. In Gujarat Ambuja, for example, water resource

development programme has been undertaken to improve the ground water table and to

control and prevent salinity by construction and repair of check dams and percolation-cum-

storage tanks. Approximately 600 wells have also been recharged to improve the ground


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Chapter 2: Issues in Industry Water Use and Management $%

water table (see case study for details). This led to the improvement of the social

environment directed towards enhancing the quality of life of local community like, guiding

farmers on modern farming techniques, supporting integrated programmes for the

development of natural watersheds. This participatory approach with stakeholders is

yielding sustained benefits to the plant.

An analysis of the case examples reveal that a participatory management strategy not only

yields direct financial benefits but also benefits like publicity as a environmentally conscious

company, boost involvement of employees, instill pride in their company translating into their

loyalty resulting in low turnovers. In short a participatory approach heightens the survival

prospects of the companies even under strong competitive forces.

This fact is also borne out by the Kalundborg experience of industrial symbiosis in Denmark

[1]. Industrial symbiosis is based on the idea that one companys waste products are

another companys raw material. Water and wastewater also are exchanged, reducing the

fresh water demand. This successful industrial symbiosis over the last 40 years,

demonstrates that environmental concern and business can go hand in hand.


Encourage voluntary initiatives like ISO 14001

Develop mechanism for participatory approach with stakeholders


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Chapter 2: Issues in Industry Water Use and Management $&

Policy Approach

In the Indian context, industry is essentially governed by the water cess act of 1977.This actrequires designated industries and local governments such as municipalities to pay a cess

(tax) on water consumption [Table 6].

Table 6: Water cess rates

(Source: Water (Prevention and Control of Pollution) Cess (Amendment) Act, 2003, Ministry of Environment and

Forests)

Water consumed for Rates*

Paise / kilolitre

Industrial cooling, spraying in mine pits or feeding

boilers

10

Domestic purposes 3

Processing1 20

Processing2 30

Note: * as per sub-section (2A) of section 3

1. Whereby water gets polluted and the pollutants are: (i) easily bio-degradable; or (ii) non-toxic; or (iii)

both non-toxic and easily bio-degradable

2. Whereby water gets polluted and the pollutants are: (i) not easily bio-degradable; or (ii) toxic; or (iii) both

toxic and not easily bio-degradable

The water cess combines features of both a user charge and an effective fee, while

providing a stream of revenue to the State Pollution Control Boards (SPCBs). However the

implementation experience has been rather mixed. A report by the Asian Development Bank

(ADB) in 2001 [6] cited the following reasons for this:

In its design and intent the cess is not a pollution charge/ effluent fee as it is not

derived on effluent discharge per se and is motivated by revenue considerations

(therefore it cannot be argued that the Cess was really intent to control waterpollution).

The cess does distinguish between different uses of water, with a higher rate being

charged for uses that make the water more dirty and/ or more toxic (i.e. use as a

surrogate pollution charge).


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Chapter 2: Issues in Industry Water Use and Management $'

At the same time, since the rate of cess is low (a maximum of 30 paise/ kL), it has

not had a significant impact on limiting the use of fresh water. Moreover, a true user

charge for water should be on all uses of water and not for designated industries

only.

For instance, though power generation forms nearly 90 % of industrial water demand, the

cooling water cess of thermal power stations, constitutes just 0.265 per cent of their total

power generation costs (Table 7). Hence, the cess acts introduction of such low costs

actively inhibits hopes of any water conservation.

Table 7: Water cess costs as percentage of power generation cost

(Source: Down to earth, June 15, 2003, Centre for Science and Environment)

Total power produced by thermal powerplants (million kwh)

372322.00

Cost of power generation (Rs / kwh) 3.27

Total cost of generation (Rs / crore) 121860.99

Cooling water cess as percentage of power

generation cost

0.20

Total water cess as percentage of power

generation cost

0.265

In view of these observations, the ADB report emphasized the desirability of de-linking the

pollution control objectives of the water cess from its revenue raising and user charge

objectives. The report suggested that apart from identifying additional sources of revenue for

the SPCBs, a mechanism for internalizing the cost of water and cost of pollution be

evolved.


Appropriate water pricing mechanism should internalize water cost and the pollution

cost

From the perspective of conserving water use by industrial units, the supply price of water is

key, as the higher the price of water; the higher will be the incentive to practice water

conservation. A policy solution matching the two requirements shall be an optimal approach.

A study on Full cost pricing of water: Options and Impacts by Ritu Kumar et al (2000) [8],


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Chapter 2: Issues in Industry Water Use and Management $(

explored the impacts of full cost pricing on freshwater demand, recycling and conservation

for Tata Steel, Jamshedpur. Full cost is defined as the price of water at which wastewater

discharges are reduced to zero, thereby eliminating possible environmental damage to

downstream users. The cost includes financial costs, current opportunity costs and the

environmental cost. The study recognized that water has been treated as a free good, rather

than as an economic good. From a policy perspective the Tata Steel study concluded the

following premises:

The choice of economic instrument be revenue neutral. Revenue neutrality is essential

to industrial competitiveness, and any revenue collected through charges be ploughed

back to assist recycling and reuse of water

Stakeholder dialogue on reform measures is essential to ensure implementation and

avoid conflict

A management planforregional water resources based on conflict resolution needs to

be developed on a rigorous technical and economic analysis

These three points thus should form an essential part of any future water policy instrument.


Management plan for regional water resources should have a mechanism for conflict

resolution amongst water use stakeholders

Pointers to a Sustainable Water Management Policy

As has been highlighted in our discussion on technological, socio-economic and policy

approaches, major efforts are taking shape based on industry-based initiatives to improve

water efficiency. To mitigate the risk of water scarcity, businesses are implementing projects

for assuring water supply.

From the viewpoint of a business, core to these case examples is the instinct for economic

efficiency and business continuity. Industrial water management must contribute to these

goals. The case examples cited demonstrate that participatory water management could

directly result in a forty to seventy percent reduction in industrial water consumption along

with other concomitant socio-economic benefits.


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Chapter 2: Issues in Industry Water Use and Management $)

However at the policy level substantial work remains to be done. The wastes discharged by

firms into water (surface and ground) generate a negative externality. At present, there is no

viable mechanism to make the firms internalize these costs. The ADB report in 2001 [6]

analyzed the systemic causes for this to be the:

Precarious financial resources of State Pollution Control Boards (SPCBs)

Excessive emphasis on

End-of-pipe treatment

Concentration based standards

Attainment of source-specific standards rather than ambient water quality

While some recent Supreme Court judgements have involved the polluter-pays-principle

(PPP), this is an ex-post principle and does not allow for the fact that some amount of

pollution is perhaps optimal. This is because all economic activity has some associated

environmental emission. Such judicial judgements place emphasis on end-of-pipe treatment

putting industry under severe financial strain and sometime s even closure. For example, the

Supreme Court judgement on tanneries in Kanpur, Uttar Pradesh forced the closure of many

tannery units.

Efforts by industry to minimize pollution are also hampered by [6]:

Limited access to new (and cleaner) technology by firms because of importrestrictions

Persistence of polluting, sunset industries due to lack of an exit policy (which allows

firms to close and lay off workers)

Incentives to (over) use polluting inputs such as subsidized energy (e.g. supply of

power in agriculture to run water pumps).

It may be worthwhile at this juncture to comment on the plethora of schemes for pollution

abatement/ prevention such as financial assistance for setting up common effluent treatment

plants (CETPs), promotion of clean technology, etc. The main problem is the lack of an

incentive mechanism to induce firms to take advantage of these schemes. In other words, as

long as the cost of these schemes to firms is nonzero (no matter how small), there is no

reason for them to voluntarily participate in them unless there is a risk of non-compliance. At

present, firms show interest in schemes such as CETPs only when there has been strict


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Chapter 2: Issues in Industry Water Use and Management $*

intervention by the judiciary, as is the case with the CETP set up in the industrial estate of

Vatva, near Ahemdabad.

Similarly with respect to incentives for the adoption of cleaner technologies (targeted

primarily at small-scale industries or SSIs), unless there are enforcement or economic

incentives, the vast majority of SSIs will not use these schemes. An argument often made by

those in favour of these schemes, that, pollution prevention pays is only partially true. In

most instances pollution abatement imposes significant net costs on firms. In cases

where it is profitable to abate, one would expect firms operating in a competitive environment

to have already taken advantage of these opportunities to reduce costs. It is, therefore, not

necessary to provide them further subsidies to take advantage of cost-cutting opportunities.

It is however, necessary to remove import restrictions and tariff barriers for import of

clean technologies.


Mechanism to induce firms to take advantage of these common treatment schemes

Remove import restrictions and tariff barriers for import of clean technologies

The results of the study by Ritu Kumar et al [8] also point towards viewing water as an

economic good and pollution as a problem of market failure, and address it through market-

based instruments (MBIs) such as pollution taxes, user charges. However, it is noteworthy

that the study also expresses the need for stakeholder dialogue and development of

regional water management plans. Any new policy initiatives would also need to look into

the aspect of institutional strengthening of SPCBs to enhance their monitoring and

enforcement capabilities.

In the next chapter we shall weave these emergent policy pointers into a proposed policy

framework, the foundations of which arise from the discussion elements in this chapter.


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Chapter 2: Issues in Industry Water Use and Management !"

Note to the Case Examples

As has been highlighted in our discussion on technological and socio-economic approaches,

major efforts to improve water efficiency are taking shape based on industry-based

initiatives. To mitigate the risk of water scarcity, businesses are implementing projects for

assuring water supply and thus business continuity. The case examples cited while

discussing the technological and socio-economic approaches are described in the following

pages.

These case studies have been abridged from a Confederation of Indian Industry publication,

Managing Environment Pays- Success Stories from Indian Industry, published in 2003 [9].


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Chapter 2: Issues in Industry Water Use and Management !$

Industry: Grasim Industries Limited, Viscose Staple Fibre Division, Nagda. The plantmanufactures viscose rayon staple fibre in regular, high wet modulus (HWM) and polynosicvarieties.

Motivation: Working on the premise of "Environmental Protection begins with ME", whereME refers to each and every one of us, the plant has developed strategies for cleanerproduction in close interaction with its stakeholders viz. everyone involved in themanufacturing activities.

What the industry has done: The underlying principles of the strategies developed were:Product Selection, Waste-load Minimization, Energy Conservation and Water Conservation.For effecting water conservation the plant took the following steps:

Good housekeeping

Closer supervision and monitoring of the process, for reducing waste loads of specificpollutants viz. ph, Zinc, T.D.S etc

Equipment design changes, for example, continuous viscomatic filters have replacedconventional plate-and-frame type filter presses, eliminating the need for periodicwashing of the filter cloth and replacement of water cooled electrodes with graphite

electrodes Recycling of various effluent steams to the maximum possible extent for example,

Xanthator cleaning water is recycled for viscose manufacture as mentioned earlier

Benefits

The efforts have resulted in about 70% reduction in water consumption. Increasedproductivity from the equipment has been witnessed, ranging from 25% to 400% at the samewater consumption level. This can be gauged from the specific water consumption leveltoday of 90-100 m3 per tonne of fibre compared to 275-300 m3 per tonne of fibre about 15years ago.

The investment in the cleaner technology initiatives in most cases resulted in economic andenvironmental benefits like:

Saving in cost of pollution control facilities that do not have to be created

Reduced operating costs for pollution control facilities

Reduced manufacturing costs

Retained sales of products that might have been withdrawn from the market on thegrounds of being environmentally unacceptable.

But for water conservation, the plant at Nagda would have remained idle for 3-4 monthsevery year. Loss of turnover on this account would have been Rs 200 crores per annum,without considering the multiplier effect from downstream industries.


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Chapter 2: Issues in Industry Water Use and Management !!

Industry: Gujarat Ambuja Cements Ltd, has two cement plants in Gujarat, one inHimachal Pradesh and a clinker-grinding unit in District Roopnagar, Punjab.

Motivation: The cement industry is inherently known for contributing to atmosphericpollution in terms of particulate matter emitted from stack and other sources. Waterusage is minimal in cement plants, as the entire production process is a dry one and

water is used only for cooling purposes. Water is required for supply to colony, plantutilities like cooling and dust control in mines. However, the plants in Gujarat are situatedin located in areas facing ground water depletion and salinity ingress.

What the industry has done: The treated sewage water from township is utilised forcooling purposes in the plant, greenery development and for spraying on the mines haulroads, as per requirement

Water Resource Development Programme has been undertaken to improve the groundwater table and to control and prevent salinity with initiatives like construction and repairof check dams, percolation-cum-storage tanks. Approximately 600 wells have also beenrecharged to improve the ground water table.

For drinking water, 25 roof rainwater-harvesting structures have been constructed. Thisis a permanent solution for pure and safe drinking water as roof top rainwater iscollected in underground cemented storage tank without any contamination.

The mine pits in this region were connected together and converted into a waterreservoir, and this is now the main source of fresh water for the local population, in theotherwise water scarce region.

Benefits: Once barren, the land now wears a green look on account of the initiatives likewater resource development, cropping and planting trees by the organization, whileenriching the local ecology by attracting various bird species

Improvement of the social environment through its efforts are directed towardsenhancing the quality of life of local community like, guiding farmers on modern farming

techniques, supporting integrated programmes for the development of naturalwatersheds

Employee morale is also high as they feel that the company is concerned about theirwelfare.


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Chapter 2: Issues in Industry Water Use and Management !#

Industry: Sandvik Asia Limited, a subsidiary of Sandvik AB Sweden has its

manufacturing plant at Pune. The plant manufactures - tools and tooling systems for

metalworking, equipment and tools for mining and construction and specialty steels.

Major customers include the automotive, aviation, mining and civil engineering industries

around the world

Motivation: Environmental awareness is integrated as a natural element in Sandviks

total business operations. Environmental consideration is always included in the

development of new products, changes in the processes and production methods and in

the assessment of investments and acquisitions. Echoing the global concern of planet

Earth, the parent company Sandvik AB of Sweden has declared that Sandvik shall

continuously strive to improve with respect to the companys impact on the external and

work environments.Sandvik Asia Limited believes in the philosophy that people are the

real assets of an organization and has been making efforts on a continuous basis in this

direction.

What the industry has done: In the area of water and water conservation the plant has

effectively implemented

Closer supervision and monitoring of the process, for enhancing water efficiency

Treatment of the generated effluents

Zero discharge of domestic effluents, by recycling effluents for gardening.

Benefits

Demonstrate commitment to Environment Policy by reducing consumption of water

and other resources

A positive impact on the morale of the employees. Helped in building Growth, trust,

openness, mutual confidence and better understanding amongst employees

Reduction in the consumption of water by about 27%

Reduction in Effluent generation by about 30 m3 / day by the installation of a

recycling and neutralisation system in one major effluent generating process

The reduction in water consumption has directly benefited the plant by Rs 7.5 lakh


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Chapter 2: Issues in Industry Water Use and Management !%

Industry: Captive thermal Power Plant of Indian Aluminium Company, Limited (INDAL)to run a 30 KTPA Aluminium smelter in Hirakud, Orissa. Plagued by acute shortagesand high tariffs, the company decided to source its own supply in late 80s. Beinglocated in the proximity of collieries, a Coal Based Thermal Power Plant was the obviouschoice.

Motivation: Indian coal has very high ash content, which not only affects the generationefficiency, but also gives rise to high gaseous emissions and solid / liquid discharges. Toreduce water consumption by using cooling tower blow down in ash moisturizing, coalyard spray etc, and recycle at smelter in long term

What the industry has done:

Water conservation audit was conducted in power plant and smelter to identify areas forreduction, recycle and reuse. Based on the recommendations the following steps weretaken:

In water treatment plant, poly-electrolytes were introduced in place of conventionalflocculants like alum. This reduced the clarifier underflow.

Cooling tower operation was optimized Reuse of cooling tower blowdown for coal and ash moisturizing

Benefits:

Though technology and design provide inbuilt advantages in cleaner production, theplant was able to maximize the efficiencies only with management tools like EMS ISO-14001. The above activities resulted in reducing water consumption by 20%, while theplant is virtually operating under Zero-discharge situation.


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Chapter 2: Issues in Industry Water Use and Management !&

Industry: Jubilant Organosys Limited, Gajraula, Uttar Pradesh.

Motivation: JOL is involved in the pro-active thoughtful management of water throughreduction of its consumption, recycling to the extent possible by modifying the systemsand reusing of comparatively clean waste water of one plant in a lower categoryutilisation in another plant, thereby saving fresh water. The ultimate objective is to

achieve Zero discharge.

Water use reduction was not prompted by potential savings in costs of water avoided orbecause water was scarce at Gajraula. Being within 6-7 km of River Ganges, goodquality ground water is available in plenty in the area. The cost of raw water also worksout to a low Rs.0.90/ m3.

What the industry has done: The approach adopted was the 3 Rs i.e. Reduce, Reuse& Recycle.

All the effluent generating systems were thoroughly studied and the characteristics ofthe effluents identified.

The effluents were then categorized broadly into two-streams viz. coloured (mainlydistillery effluents) and colourless effluents.

The coloured effluents were to be necessarily treated in the Distillery ETP, while forthe colourless effluents; possibilities were studied for their re-use elsewhere as it isor with minimum treatment.

The time taken to study the existing system, analyze the problems and scope forsavings, identifying the measures that were needed to be taken and implementation ofthe same, took about 1 years.

Reduce Reduce dilution of spent wash in DistilleryReduce requirement of fresh water for cooling in CO2 compressorAir blower & NH3 compressor in Distillery

Recycle Sealing water of vacuum pumpsReuse Identify second use of water from TEP vacuum pump,

Water from foam trap & yeast vessel of Distillery

Benefits:The fresh water extraction was brought down from 15500 m3/d to approx. 11600 m3/d a reduction of 25%. As a consequence of those efforts the effluent quantity has alsocome down by about 3350 m3/d.

The cost incurred for the above measures was Rs.30.40 Lakhs approx. The financialsavings came from reduction in pumping costs for withdrawal of fresh water, avoidingmajor capital investment for providing treatment arrangement, handling reduced quantityof treated effluent for storage and subsequent use and reduction in water cess amount.However, part of these savings was off-set by pumping costs in the newly introducedrecycling systems replacing the once through arrangements. The net savings worked outto about Rs. 15.0 Lac/yr.


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Chapter 2: Issues in Industry Water Use and Management !'

Industry: Larsen & Toubro, Hazira, India

Motivation: L & T Hazira an ISO 14001 company was grappling with reducing the substantialconsumption of water within the unit. Industry consumes a large proportion of water for processand potable purposes.The firm pays for this water, invests in treatment systems to make it fit for process and potable

use and also invests in effluent treatment systems. All these costs are calculated on the basis ofvolume of water handled. The plant was searching a mechanism to reduce the volume of water.

What the industry has done : A novel solution was developed in-house, an innovative solutionthat is practically free: an orifice. The orifice, made of nylon, has been designed so as to fit intoany standard plumbing as shown in Figure I below.

Fig I: Orifice to control water flow

Initially 2,00,000

Litres of water conserved perday at L&T Hazira works

Orifice to fit insidewater tap

2 mm dia opening

In tests conducted with the orifice, the time taken to fill a given bucket volume was noted andthen the flow rate calculated. Two diameters of the orifice were experimented with 2 mm and 4mm, the results for which are compiled in Table 1.

Table: Experiment water savings using Orifices of two different openings

Condition Time taken (Minutes) Flow rate (Litres/ Minute)

Without orifice 2.5 24

4 mm orifice opening 5.25 11.4

2 mm orifice opening 12 5

Benefits: Fitting these orifices within the L&T unit at Hazira resulted in conserving water upto 2lakh litres per day. The overall savings are pretty much substantial when seen along with thesavings in terms of electrical power consumption for operating various water pumps and alsothe reduced volume required to store the water.

Enthused by the success of the device, nearly 12000 similar nylon orifices have already beenfitted in water taps across many firms in the country viz. Reliance, Essar Steel who havereported similar benefits.


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Chapter 2: Issues in Industry Water Use and Management !(

Industry: Maruti Udyog Limited (MUL), Gurgaon, Haryana is Indias leading

manufacturer with about 55 per cent share of the Indian car market.

Motivation: The management of MUL is sensitive to the issue of sustainable growth.

Efforts are directed towards producing a contemporary product through the use of the

latest technology and production systems acquired from its collaborators M/s. SuzukiMotor Corporation, Japan. Conscious efforts have been made to ensure optimum

utilization of resources and to take effective pollution control measures.

Water table in and around MUL is on a fast depleting trend. The industrial growth of

Gurgaon area after the inception of MUL and the consequent development of residential

colonies and sectors has aggravated the depletion of water table.

What the industry has done: A comprehensive water conservation initiatives

undertaken were:

Reduction in water consumption & minimization of wastage through

measures like Introduction of ultra filtration modules in paint shop, Storage tanks atfar off places to reduce flow/pressure, Conversion of underground lines to overhead

lines for better monitoring etc

Recycle & Reuse, MUL was discharging nearly 18,40,000 cum of treated water

from the Effluent Treatment Plant (ETP), annually till 1995-96. This was a total loss

to MUL. Recycling of various effluent steams to the maximum possible extent

Equipment design changes, for example, modification in weld shops, minimized

the losses of current, thereby reducing the circulating water requirement by more

than 70%, A Reverse Osmosis system was introduced in new paint shop resulting in

a reduction of DM water usage by 40%.

Rain Water Harvesting, the Maruti factory is spread over 300 acres. A factory wide

rainwater harvesting system was designed in consultation with IIT Delhi and put to

use.

Benefits: MUL today is in a position to meet its water requirement with the help of tube

wells, canal and in-house generation of water at ETP & STP. Rainwater harvesting is

being used to re-charge and improve the ground water table. Recharging of groundwater

table is also being considered from treated STP effluent. This shall reduce the net load

on underground water resources due to MUL by 60%, making the balance resource

available to the environment.


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Chapter 3: Conclusion !)

Chapter 3:Conclusion

Policy-makers faced with long term environmental problems often argue that they cannot afford

to worry about the remote and abstract when surrounded by the immediate and concentrate.

The problems that overwhelm us today are precisely those, which, through a similar approach,

we failed to solve decades ago

Dr. Mostafa K Tolba, Former Executive Director

United Nations Environment Programme

Introduction

Growth of Indian economy continues to depend significantly on the adequacy and fairergeographical distribution of rainwater. The strong GDP growth demonstrated by the Indian

economy recently is a manifestation of good monsoons for last couple of years. It is quite clear

that if this growth is to be sustained then mitigation of local water shortages in the so-called

hydro-hot spots is a must. It was in the Dublin principles of 1992, that water was recognized as

an economic good. The Governments recognized that water development and management

should be based on a participatory approach, involving, planners and policy makers at all

levels [7].

This would require a shift towards input oriented environmental policy (start of pipe), compared

to the conventional output oriented policy (end of pipe). Output oriented policy requires active

counter-measures to mitigate the ecological effects of the waste throughout the life cycle. Input-

oriented policy in contrast, aims to reduce the material flows, by focusing on the causes of the

environmental crisis rather than on its symptoms.

Governments are not adopting input-oriented environmental polices as there is a perception that

internalizing the environmental costs shall hinder competitiveness in international markets.

However, as the case of Tirupur industrial complex shows the cost of inaction is much more.

Moreover, evidence for the potential of such policies to hinder competitiveness is vague and

insufficient [1]. For instance, as the famous example of industrial symbiosis in Kalundborg,

Denmark demonstrates, it is possible to do the right thing for the environment in the pursuit of

rational business interests.


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Chapter 3: Conclusion !*

In India, inspite of the absence of government policies, major efforts to improve resource

efficiency are taking shape based on industry-based initiatives. An ever-growing number of

businesses are implementing resource efficiency projects because of the benefits of preventing

waste, rather than cleaning it up once its created.

Policy model for sustainable water use and management in industry

As can be noted from the case examples cited in chapter two, a systematic approach to water

resource management considers a hierarchy of three levels: water conservation, water

reuse, and water recycle. Water conservation covers the most basic of actions such as fixing

leaks, enhanced monitoring of flows, optimizing cooling tower and boiler operation. Water reuse

involves reclaiming water from one source and using it as make-up for another process without

changes in its quality. Examples include wash water being used for horticulture, counter-current

operation in pulp mills and cascading. Water recycling involves reclaiming a water source after

improving its quality. Examples include side stream filtration of cooling water systems and

recycle of filtered white water on low-pressure paper machine showers. Typically, as one moves

from conservation to reuse and recycle, the potential for water efficiency and size of capital

investment increases (Figure 1). This adds to the financial risk of these projects, while allowing

for a greater degree of water savings [1].

Core to the case examples cited in chapter two is the instinct for economic efficiency and

business continuity. From the viewpoint of a business, industrial water management must

Figure 1: Hierarchy of watermanagement in industry


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Chapter 3: Conclusion #"

contribute to these goals. Another point noteworthy is that the efforts have by and large been

voluntary, implemented under the aegis of an environmental management system such as ISO

14001. The efforts had evolved from the participatory approach of involving stakeholders within

the organization, which aided in developing and reinforcing trust and openness within the

industry. This participatory approach when extended to the local community like in the case of

Gujarat Ambuja yielded even more benefits. The Tata Steel study [8] also corroborates this fact

by moving a step further and emphasizing the need for a management plan for regional water

resources based on conflict resolution needs to be developed on a rigorous technical and

economic analysis.

The key elements of the policy

The Brundtland report, Our Common Future, (1987) defines sustainable development as,

economic, social and environmental development that meets the needs of the present without

compromising the ability of future generations to meet their own needs. A working definition is

that sustainable development is the harnessing of resources, the direction of investments the

orientation of technological development, and the institutional cycles, all made consistent with

future as well present needs.

Based on the above definition, the necessary preconditions for sustainable development

are, namely:

Equity and social justice, implies participatory approach

Endogenous choices, implies that the initiatives are voluntary

Economic efficiency, implies that the initiative must be economically viable

Ecologic harmony, implies the initiative must operate within the carrying capacity of the local

eco-system, without causing irreparable damage to it

As is evident from the case examples in chapter two, the initiatives were satisfying some or all

of these preconditions. Thus, the key learnings one can pick from the case examples have

been:

Cradle to cradle closure of the water cycles, for this a shift towards input oriented policy

as described earlier in this chapter is required. This essentially would mean ensuring


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Chapter 3: Conclusion #$

multiple uses of water during a typical industrial water use cycle (cradle to cradle). For this

the hierarchy of water management as shown in figure 1 is a good starting point.

Treat water as an economic good. Appropriate water pricing mechanism should

internalize water cost and the pollution cost. The use of water has to be related to the

water quality (and not just water availability and the economic aspects).

Use of market based mechanisms. Command and control options presently in vogue

should be sparingly used. The choice of economic instrument however should be revenue

neutral. Revenue neutrality is essential to industrial competitiveness, and any revenue

collected through charges be ploughed back to assist recycling and reuse of water . This

should however be done through comprehensive stakeholder dialogue on reform measures,

to ensure implementation and avoid conflict

Develop regional water management plans, especially for hydro-spots. Management plan

for regional water resources should have a mechanism for conflict resolution amongst water

use stakeholders

A policy option aimed at the aspirational goal of sustainable development hence would have to

satisfy the pre-conditions cited above. The policy would need to meet the touchstones of

accountability, participation, predictability and transparency. Such a policy model is depicted in

Figure 2. Figure 2maps out the proposed interventions to be made at a policy level to address

water management issues from an industry perspective. These issues have emerged from the

discussions in case examples in chapter two. The issues have been broadly divided into four

categories based on the stakeholder with whom industry interacts, namely the resource inputs,

market forces, institutional support and the policy framework. The enabling approaches that are

suggested for inclusion in the policy are also listed. Key to the entire process is transparency of

interaction amongst industry and its stakeholders i.e. a participatory approach. A model policy

framework would thus have to:

1. Allocate sufficient priority for water allocation to industry

2. Provide incentive for uptake of water efficiency, especially in the case of water intensive

industry sectors. The policy approaches discussed in chapter two are in this direction

From the case examples it is very clear that, Industry and environment can no longer be

considered mutually exclusive. A sustainable enterprise is not just based on idealism, but also

on enlightened self-interest.


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Chapter 3: Conclusion

Figure 2: Policy Framework for Sustainable Water Management

-

55

Issues Assured access to water

Water quality / quantity

Policy approaches Participatory approach at local

level e.g. water sheddevelopment schemes

Source augmentation e.g. rain-

water harvesting Zero discharge situation

Issues Access to affordable water efficient

technology especially for SMEs Conflict resolution at local level

Policy approaches

Industry R &D linkages Affordable finance options from Financial

institutions Regional water resources management plan

to include mechanism for conflict resolution

Is

P

Issues Low priority to in

Low incentive foespecially for S

recognition and Multi-ministry wa

Policy approache Participatory wa

Water be broughwindow

Mutual trust for s

Recognition and

Revenue neutra


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Chapter 3: Conclusion ##

Similar initiatives need to be initiated in other competing sectors also, like agriculture.

Unfortunately, less attention is given to agriculture, a significant user of water, because of the

political influence and protection of the agricultural sector. As Mr. Anand Mahindra, President

(2003-04), Confederation of Indian Industry puts it, My biggest fear is agriculture. If the growth

is not sustained, industrial growth could well be back to where we started. To ensure that this

does not happen agricultural reforms with a particular emphasis on water resources- from

harvesting to conservation to recharging have to be pushed. We cannot consider ourselves a

robust economy if everything hinges so crucially on the monsoon (The Times of India, New

Delhi).


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-

1. Water Recycling and Resource Recovery in Industry, edit. Piet Lens et al, IWA

Publishing, 2002

2. India Today, June 9, 2003

3. Green India 2047- DISHA, The Energy and Resource Institute, 2000

4. India Development Report-2002, Oxford University Press & IGIDR, 2002

5. The Worlds Water-Biennial report on freshwater resources, Island Press, 1998

6. India: Mainstreaming Environment for Sustainable Development, Asian Development

Bank, 2001

7. Water for the Poor, World Business Council for Sustainable Development, 2002

8. Full cost pricing of water: Options and Impacts, Ritu Kumar et al, UNIDO, February

2000

9. Managing Environment pays- Success stories from Indian Industry, Confederation

of Indian Industry, Environment Management Division, 2003

Documents

Water management in Industry Sector Paper