1. Gurgaon First Challenges in Water and Sewerage October 2013 www.pwc.com

2. PricewaterhouseCoopers Private Ltd Outline National Issues and Local Challenges Lessons Learnt Way Forward Slide 2 October 2013 Gurgaon First

3. PricewaterhouseCoopers Private Ltd Water usage and availability in India 3 In 2006 India’s water usage was approximately 829 billion cubic meters of water every year which by 2050 is expected to double and exceed 1.4 TCM Per-capita water availability in India is decreasing, with potentially very high water stress expected (less than 1000m 3 per capita per year) Currently 30% of rural population lacks access to drinking water, and of the 35 states in India, only 7 have adequate availability of drinking water for rural inhabitants. According to Ministry of Water Resources, industrial water use in India is about 50 BCM or ~6% of total freshwater abstraction. This demand will only increase, given the forecasts and thrust on industrial/ urban growth. While some of India’s water-related problems are due to scarcity, many can be directly seen to be due to mismanagement of water usage

4. PricewaterhouseCoopers Private Ltd Impacts of scarcity of water & competition for water allocation Environmental o Drying water sources o Disruption of natural habitats Social o Increased out-migration from water-scarce places o Increased pressure on a few urban centres o Self-perpetuating process that results in more water transferred to the few urban centres o Increasing conflicts over water Economic o Rising costs of water as an input to economic processes 4 Need for reducing water use without compromising on growth translates into need for enhancing efficiency of water use

5. PricewaterhouseCoopers Private Ltd Local Challenges 1.Rapid urbanisation entails challenges at policy and operational levels 2.Policy-level challenges: allocation of roles and responsibilities, accountability structure, and grievance redressal mechanism (e.g., rural-urban & agri-industrial water transfers emerging as key conflict areas) 3.Operational challenges: managing groundwater extraction, efficiency of water use, and water allocation 4.Reforms addressing devolution of responsibilities need to be accompanied by ring-fencing, and appropriate financial authority to the municipal authorities 5.Accountability relationships are not well-established, leaving scope for over-politicisation of issues rather than the issues being addressed October 2013 Gurgaon First Slide 5

6. PricewaterhouseCoopers Private Ltd Overview of Gurgaon’s Urban Water and Sewerage 1.Normal annual rainfall in Gurgaon district is about 600mm, most of it during the monsoon: -Conservation of water for year-round use is therefore critical 2.Currently Yamuna is a chief source of water for Gurgaon 3.HUDA supplies most of the piped water in Gurgaon (piped systems owned by HUDA) 4.Rain Water Harvesting taken up as a municipal-level initiative by MCG - master plans prepared with support from Jamia Milia Islamia University 5.Sewage treatment is not yet a priority - Najafgarh canal reported as a drain October 2013 Gurgaon First Slide 6

7. PricewaterhouseCoopers Private Ltd Urban Water and Sewerage in Gurgaon – Issues Water: 1.42% gap in water demand (184 MLD) and supply (107 MLD) met through extraction of groundwater 2.Close to 86 MLD groundwater extracted from over 30,000 borewells in the city 3.Rise in % of water demand met from groundwater from 6% to 70% since 2005-06 Sewerage: 1.Official numbers estimate 80MLD sewage generation, while other estimates are at 130MLD 2.50-60% of the sewage is reported to flow through Najafgarh drain, while rest is reported to seep into the ground Source: Centre for Science and Environment, New Delhi October 2013 Gurgaon First Slide 7

8. PricewaterhouseCoopers Private Ltd Learning from examples - Chennai Severe water shortage plagued the city, despite receiving abundant rainfall and being flooded during rains More than 30% of the city’s water demand was met through groundwater, sourced from as far as 40km away from the city Sea-water ingress observed to be significant, due to excessive extraction of groundwater Peri-urban to urban water transfers were rampant, sometimes sparking disputes within the surrounding communities Managed groundwater recharge (through construction of percolation ponds & recharge pits, and making RWH mandatory for various categories of buildings), and reduction in water leakage /pilferage have resulted in alleviation of some of the water problems October 2013 Gurgaon First Slide 8

9. PricewaterhouseCoopers Private Ltd Lessons Learnt Well-defined and authoritative regulatory institutions are essential for: -Monitoring compliance to principles of Transparency, Accountability, and Participation, in ◦Policy-making, ◦Decision-making, and ◦Grievance redressal -Assigning and monitoring responsibilities of various stakeholders including governing agencies and the beneficiary population. Building capacities of governing agencies to appreciate and address multi-dimensional issues Systems to collect and analyse data/ information are essential Slide 9 October 2013 Gurgaon First

10. PricewaterhouseCoopers Private Ltd Way Forward 1.Strategic steps: i.Establishing through comprehensive studies the principles and guidelines for conservation of water resources ii.Holding transparent multi-stakeholder dialogue for incorporation of the principles and guidelines in working plans for water resource conservation iii.Translation into practice the principles and guidelines for all sectors of water use categories: design of water conservation norms and standards iv.Evolving a roadmap for water conservation in urban sector 2.Short-term action plan: i.Project water demand and supply gap ii.Assess investment requirements iii.Build capacities and systems to address the requirements iv.De-politicisation of water tariff: ‘RPI-x’ could be a basis for auto tariff revisions 10

11. Visioning is essential to build the reality we want This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, [PricewaterhouseCoopers Private Limited, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.. © 2013 PricewaterhouseCoopers Private Ltd. All rights reserved. “PwC”, a registered trademark, refers to PricewaterhouseCoopers Private Limited (a limited company in India) or, as the context requires, other member firms of PwC International Limited, each of which is a separate and independent legal entity. Ranen Banerjee Executive Director PricewaterhouseCoopers Private Limited ranen.banerjee@in.pwc.com