1. Water Resources in Karnataka Emerging Challenges & Options Presentation by V.P. Baligar IAS., Principal Secretary to Government Commerce & Industries Department

2. Status  Karnataka - a pioneer in industrial development, presently among the industrially most advanced States in the Country  Strong industrial base : 3,50,000 SSI units & 2,000 medium / large units  Industry contributes substantially to the GSDP, revenue to the Government, exports & employment

3. Investment Approvals in Karnataka YearsNo. Investment (Rs. cr.) Employment (lakh Nos.) 1991-03 (12 yrs.) 1991-03 (12 yrs.) 1793 1793 1,32,421 1,32,421 7.27 7.27 (1991-03 ) Average p.a. (1991-03 ) 149 11,035 0.61 2003-04194 12,638 2.02 2004-05231 36,243 2.47 2005-06359 73,164 13.10 2006-07946 1,02,210 15.06 2007-08758 1,63,757 21.75

4. Investment Approvals in Karnataka

5. Employment Opportunities in Karnataka

6. Rapid Industrialization  Investment approvals averaging Rs. 11,000 cr. p.a. (during 1991-92 to 2002-03)  Last four years - phenomenal growth  Investment approvals increased from Rs.12,638 cr. (2003-04) to Rs.1,63,757 cr.(2007-08) - 13 fold increase in 4 years  Nearly 10% of the population of Karnataka can get employment

7.  Water-intensive mega projects in Core Sector (Steel & Cement) in Krishna Basin, adding value to mineral resources  Cauvery Basin : IT, ITES, automobile, hardware, hi-tech industries, etc.  More investment in Integrated Townships around Bangalore Consequence - huge spurt in demand for water Rapid Industrialization (contd.)

8. Constraints & Challenges  Meeting this unprecedented demand for water with limited availability  Besides water, there is substantial demand for land, power and other infrastructure  Increased demand for potable water due to large scale employment by hi-tech / IT industries in Bangalore & Mysore districts in Cauvery basin

9.  Low water allocation for industry (barely 3% in Krishna Basin & 0.4 % in Cauvery Basin) by Tribunals  Current National industrial water consumption is 6%.  Projected to be 10 % by 2050 - National Commission for Integrated Water Resources Development (1999) Constraints & Challenges (contd.)

10.  No separate allocation for Power Sector - Industry to share with Power Sector  Of the 20 TMC allocated for industry, over 50 % is used by thermal power plants in Krishna Basin  Annual industrial water (excl. power projects) requirements by 2025 projected at : - 1.85 lakh MG (29.70 TMC) in Krishna Basin (20 TMC) - 3.02 lakh MG (48.50 TMC) in Cauvery Basin (available 4 TMC) Constraints & Challenges (contd.)

11. Main Challenges Ensuring adequate water supply to the new industrial and service sector projects

12.  Mandatory recycling of water  Treatment of sewage water through PPP  Rainwater harvesting to be made compulsory  Rewarding industries for conservation of water  Monitoring allocations vis-à-vis availability Strategic Options – Short-term

13.  Explore the possibilities of re- appropriating unutilized allotment to irrigation for industries  One TMC water is earmarked for irrigating every 1000 ha. of land Strategic Options – Short-term (contd.)

14.  Siting of water-intensive industries around perennial sources of water  Evolve norms for water consumption  Mandatory Water Audit for water-intensive industries Strategic Options – Medium-term

15.  Seek higher & separate allocations of water for industry and power sectors  Identify potential / untapped resources of water & harness to augment availability Strategic Options – Long-term

16. Outcome  Enhanced investment flow into the State - accelerated economic growth  Leverage mineral & other natural resources for value added products  Development of backward regions  Greater awareness amongst all stakeholders on optimum / judicial usage of water

17. Thank you