India is witnessing a paradigm shift in its approach to wastewater (referred to as used water lately) management through a combination of regulatory reforms, policy frameworks and infrastructure-driven programmes at both the national and state levels.
A key development in this direction is the notification of the Liquid Waste Management Rules, 2024, by the Ministry of Environment, Forest and Climate Change (MoEFCC), which emphasises the minimisation, collection, treatment and reuse of used water, including sludge. These rules introduce extended user responsibility and set clear reuse targets for bulk users and industrial units. In line with these regulatory measures, key flagship programmes of the central government collectively aim to enhance used water treatment capacities and the rehabilitation/upgradation of associated infrastructure. In addition, a wide range of collaborative and technological interventions are being made across municipal and industrial segments. Urban local bodies, water utilities and research organisations, along with private players, are also exploring new avenues for the reuse of treated used water as well.
Intensified government support
In recent years, the Indian government has significantly ramped up its efforts to facilitate used water treatment, aligning with the broader goals of resource efficiency and its subsequent reuse. Its multiple programmes are directed towards creating this impact. Under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), the government has made substantial progress in expanding sewage treatment capacity. As of March 2025, AMRUT 1.0 had established around 4,450 million litres per day (mld) of treatment capacity, with around 1,430 mld earmarked for recycling and reuse. Additionally, approximately 1,850 mld of capacity is under implementation. AMRUT 2.0 has further intensified this effort with around 6,740 mld of new or augmented capacity approved, including approximately 2,090 mld dedicated for reuse. Complementing this, the recently launched Jal Hi Amrit scheme incentivises states and union territories to adopt used water reuse practices through the optimisation of sewage treatment plants (STPs), with around 880 STPs already listed across the country. Water boards across cities like Bengaluru and Surat are availing of incentives under the scheme.
Parallelly, the National Mission for Clean Ganga has also incorporated a strong used water treatment component. As of March 2025, 143 of 227 sewage treatment projects have been completed, contributing significantly to Ganga river rejuvenation efforts. Under the scheme, around Rs 159 billion has been spent, out of a sanctioned cost of Rs 338 billion. Moreover, the Swachh Bharat Mission (SBM) has contributed significantly, with 2,086 urban wastewater processing facilities constructed under SBM (Urban), and liquid waste management systems implemented across more than 526,700 villages under SBM (Grameen) as of May 1, 2025.
Scaling-up municipal segment
Municipal bodies and water utilities are undertaking several major works to upgrade their existing used water treatment infrastructure and expand it by developing new related facilities. The scale of such activities has increased over the years, especially gaining traction in major metropolitan cities, owing to the rising water crisis. The Delhi Jal Board (DJB) is one such parastatal that has been proactively working on improving the efficiency of its facilities. Of its 37 operational STPs, 18 are undergoing upgradation for performance improvement, while one of its largest STPs, in Okhla, with 564 mld capacity, has been recently completed. Operationalised in April 2025, the Okhla STP has significant potential to benefit around 4 million people residing in different parts of Delhi. Further, to bring clarity on its actual treatment of used water, the Delhi government has directed the DJB to conduct a third-party audit of all its 37 STPs. Another major leap made for the enhancement of water infrastructure in the capital city is the approval of Rs 31.4 billion by the Expenditure Finance Committee for setting up 27 decentralised STPs and sewer lines. On similar lines, the Uttar Pradesh government is also undertaking initiatives to treat the sewage discharged in rivers by tapping overflowing sewers identified through drones. It has been treating 4,800 mld of the total 5,500 mld sewage discharged to curb river pollution in the state.
Other cities are also following suit. For instance, the Kolkata Municipal Corporation (KMC) collaborated with IIT Kharagpur in January 2025 to implement a pilot project for treating about 50,000 litres of used water. In this effort, IIT Kharagpur will provide technology for establishing a filtration system at KMC’s drainage pumping stations. Meanwhile, smart city authorities are focused on improving river water quality by setting up STPs. The Ranchi Smart City Authority is planning to rejuvenate the Latma and Naiti rivers by constructing an advanced STP and a 40 km long stormwater drainage system. The STP aims to treat used water generated by households before releasing it into the Subarnarekha and other rivers.
Technology uptake in industrial used water treatment
Industries across-India have begun deploying more technologically advanced used water treatment systems. They are adopting zero liquid discharge (ZLD) systems in line with state-level used water recycling policies and regulatory frameworks such as the National Guidelines on Zero Liquid Discharge issued by the MoEFCC and the Central Pollution Control Board. In fact, the textile, tannery and distillery industries are under close regulatory scrutiny to ensure compliance with stringent used water discharge norms. Further, private sector participation is also growing. For instance, VA Tech Wabag is setting up a ZLD plant along with a used water treatment plant at GAIL Limited’s petrochemical complex in Pata, Uttar Pradesh.
Research institutions are also contributing significantly to technological innovations. In March 2025, IIT Guwahati developed a sustainable method to treat industrial used water using biochar produced from fruit waste through pyrolysis. Similarly, in January 2025, NIT Rourkela introduced an eco-friendly process to efficiently treat industrial used water contaminated by dyes. This process has achieved a 95.4 per cent decolourisation of persistent dyes and a 94 per cent reduction in chemical oxygen demand.
Facilitating treated used water reuse
Consistent and concerted steps are being taken to promote the recycling and reuse of treated used water through both policy initiatives and on-ground applications of setting up related infrastructure. In Uttar Pradesh, the State Mission for Clean Ganga is drafting a comprehensive policy aimed at optimising the reuse of treated used water. The policy, currently open for public feedback, envisions its use across the agricultural sector and industries, and for groundwater recharge. It also seeks to enhance and upgrade the efficiency of the state’s used water infrastructure, which includes 144 operational and 73 under-construction STPs.
At the municipal and industrial levels, several initiatives are already under way. One such case is the establishment of three tertiary treatment plants with a combined capacity of 45 mld by the Navi Mumbai Municipal Corporation to supply recycled water to construction sites, thereby conserving potable water. On a larger scale, in FY 2025 (up to February 2025), coal and lignite PSUs supplied around 390 million kilolitres of treated mine water to nearby communities for domestic and agricultural use, significantly reducing their reliance on groundwater sources.
Underlying constraints and anticipated market projection
Despite the growing momentum in used water treatment, several systemic challenges continue to hinder its widespread adoption and scalability. High capital investment requirements for establishing STPs and associated infrastructure remain a major barrier, especially when coupled with the high operational costs of advanced technologies. India’s research and development ecosystem in this domain is underfunded, limiting technological innovation and the potential for automation, which could otherwise reduce labour intensity and operational expenditure. Private sector participation is relatively limited, and the availability of skilled personnel remains inadequate. Furthermore, most state-level reuse policies lack clear guidelines on treatment processes, technology selection and business model frameworks, impeding effective implementation. Water reuse efforts are largely urban-centric, and only 11 of 28 states have formal reuse policies, most of which fall short on actionable plans and measurable targets, resulting in fragmented progress.
Nevertheless, the sector’s maturation suggests a positive trend in the coming decades. Industry estimates project that used water generation will increase from over 52,500 mld in 2023 to more than 91,500 mld by 2051. With this, treatment capacity is expected to expand at a faster pace from over 22,500 mld in 2023 to more than 67,500 mld by 2051. This growth is being facilitated by evolving public-private partnership models, while integrated approaches such as the “one city, one operator” model are being adopted to streamline operations and enhance efficiency in used water management.
Shubhangi Goswami
