Water Governance Mapping Report INDIA
Water Governance Mapping Report INDIA
2016
1
Executive Summary
Textile industry is one of the oldest as well most important industries in Indian economy. It accounts for around
2% of GDP, 8% of excise and customs revenue collections, 14% of the industrial production and 12% of the total
manufacturing export earnings. The sector is the second-largest employment generating industry in both rural
and urban areas with nearly 35 million workers. Since textile industry is highly water intensive and India had
been identified as a highly water-scarce region, the long term viability of the Indian textile industry hinges
heavily on sustainable water management.
To a large extent, the mismanagement of water resources has exacerbated the problems of water scarcity and
variability, leading to critical situations of water quantity and quality in many parts of the country. Water
governance is the key to ensure that beyond the technical engineering solutions, there exists enabling systems
of coordinated regulations, institutions and incentives to balance various needs for water. With the focus on
textile water use in India, especially in the Faridabad-Ballabgarh cluster in the state of Haryana, this report aims
to: a) assess physical and regulatory water risks; b) investigate water governance landscape; and c) inform
priority areas for capacity building in sustainable water management.
The Faridabad-Ballabgarh cluster was chosen as the focus of the report due to its high concentration of wet
processing units within the STWI Projects in the National Capital Region and enormous environmental
challenges with a high level of pollution from industrial sources and declining groundwater table due to
overexploitation. At the same time, the Zero Liquid Discharge (ZLD) policy by the Central Pollution Control
Board (CPCB), which regulates pollution and water abstraction by industries including the textile wet
processing units, has driven some actions to adopt efficient water use and management in the cluster.
This report discusses two main background contexts: 1) the landscape of the textile industry at the national as
well as state level: its economic significance, outlook to its sustainability, and specific water management
challenges, especially water use intensity and effluent characteristics; and 2) the overall challenges of water
resources management in India.
The report finds four major physical water risks of the textile industry, both at the national and state level:
a) Increasing gap between the supply and demand of freshwater that are required to underpin the growth
and ambition of the textile industry.
At the national level, most basins have a severe scarcity gap (20-80%) and most districts are prone to multi-
year drought. At the state level, the stage of groundwater development is 127% in 2013-2014, which
implies that the annual groundwater consumption is much higher than the annual groundwater recharge.
b) Declining groundwater table due to overexploitation of the resources.
In Haryana state, 55 groundwater blocks were notified as over exploited, 11 blocks as critical and 5 blocks
as semi critical. At the national level, most regions have groundwater development beyond 41% and a few
regions have exploitation rate above 100%.
c) Degrading water quality both for surface water and groundwater.
Over 70% of the water consumed by the rural population in India does not meet the WHO standards
contributing to almost 80% of rural illnesses and 20% deaths among children age up to 5 years old. Only
31% of the total sewage water generated in 23 major cities is treated and the rest is disposed of into 18
major rivers in the country. Haryana state has three river stretches falling under priority 1, the highest risk
of water pollution as indicated by a high level of Biological Oxygen Demand. The groundwater quality is
also a grave problem with salinity, high fluoride, and arsenic as the major concerns.
d) Suboptimal performance of existing individual Effluent Treatment Plants (ETPs) or Common Effluent
Treatment Plants (CETPs).
The CPCB study in 2005 showed unsatisfactory performance for many CETPs due to poor operation and
maintenance, as well as high Total Dissolved Solid (TDS) in raw water. In Haryana, the suboptimal
2
performance of the ETPs are attributed to the under capacity of the installed ETP, lower operation of ETP
than prescribed, and the lack of skilled labours.
To understand how the current water governance landscape in Haryana state is prepared to address those
physical water risks, this report maps the key actors, their roles, regulations and initiatives pertaining to six
components of industrial water governance value chain. The key actors are shown in the figure below.
Key Public Health and Public Health and Industries Haryana State Pollution Control Board (HSPCB)
actor Engineering Engineering Department of Environment (DoE)
Department Department
Public Health and Engineering Department (PHED)
(PHED) (PHED)
Municipal
Corporation of
Faridabad (MCF)
The current water governance landscape has engaged a rather broad range of key actors with relevant
responsibilities, existing laws and regulations, as well as progressive initiatives at the national and state level.
Nevertheless, the main issues of industrial water governance that contribute to regulatory water risks are:
1) The gap between industry readiness in practice and the expected performance of the industry as required
by the regulations, especially but not limited to the small scale industry.
2) Some regulations have not been able to keep up with the fast pace of degrading quantity and quality of
water resources, which require timely adjustment of the regulations so as to provide incentives for
improved water management by the industry.
3) Lack of good governance capacities, especially with regard to coordination across government agencies
and lack of transparency and accountability in the implementation of the regulations and initiatives.
4) The ZLD policy as the most ambitious initiative that the Government of India has launched in terms of
sustainable water management has been seen both as opportunities and risks by the stakeholders,
especially the affected industry, under the implementation challenges regarding financing, technology and
space availability.
The report suggests the following priority areas for capacity building in view of improving industry’s readiness
toward the ZLD policy:
1) Assessment of appropriate financial instruments and mechanisms to catalyse faster adoption of cleaner
technology for the industry, especially for the small scale industry considering its importance in generating
employment.
2) Development of guidelines for selecting cost-efficient and appropriate technology for the industry with
regard to the scale, characteristics, and production line of the textile units. The guidelines can facilitate a
rapid development of customised or mixed solutions for textile units. The assessment shall employ Cost
Benefit Analysis of potential solutions, including the construction of new ETPs or CETPs or improvement of
existing ETPs/CETPs that are suitable to local conditions and current water risk challenges, especially in the
view of limited space availability.
3
3) Improving the skills in operating cleaner production processes and effluent treatment plants, through
capacity building activities across the industry. STWI Projects has undertaken such workshops but this
needs to be replicated on a wider scale across the industry.
4) Improving communication and harmonisation of regulations across government agencies in order to
expedite: a) learning of best practices from other states (e.g. Tirupur) or countries; b) enhance the efficacy
of regulations.
5) Enhancing good water governance through better transparency and accountability of decision making
processes as well as the implementation of various initiatives related to the ZLD policy.
6) Financially incentivize uptake of wastewater as make-up water.
7) Need to create standards for water consumption.
8) Test technologies on pilot basis and create a standard user manual to ensure usage of clean and
efficient technologies.
9) Individual ZLD facilities are more preferable than common facilities.
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Table of Contents
Tables ...................................................................................................................................................................... 6
Figures ..................................................................................................................................................................... 7
Abbreviations ......................................................................................................................................................... 8
Chapter 4 Physical water risk outlook of the textile and leather industry ......................................................... 20
4.1.3. Water Pollution at the National Level and Ganges Basin ........................................................... 22
5
4.2.1. Increasing Water Supply Demand Gap at the State Level .......................................................... 25
5.2.2. Initiatives..................................................................................................................................... 39
5.3.1. Perceptions on Risks and Opportunities Associated with ZLD policy ......................................... 42
5.3.3. The Need for Increased Transparency and Enhanced Coordination .......................................... 45
REFERENCES .......................................................................................................................................................... 54
Tables
Table 1 Textile Industry Effluent Characteristics ................................................................................................... 13
Table 2 Index of Industrial Production for manufacturing sector with base year 2004-2005 .............................. 15
Table 5 Places on the Ganges Basin which do not meet the criteria set by CPCB ................................................ 23
6
Table 6 The Distribution of CETP and Its Capacity ................................................................................................ 24
Table 8 The groundwater resource development potential of Faridabad district of Haryana ............................ 26
Table 9 Categorization of Polluted Stretches of River in Haryana according to the BOD Level ........................... 27
Table 11 The Surface Water Quality Level in Haryana at Some Monitoring Stations ........................................... 28
Figures
Figure 1 Supply Chain Components for Textile Industry ....................................................................................... 13
Figure 3 Share of industrial sector in Haryana state GDP at current prices .......................................................... 14
Figure 12 Categorization of Groundwater Blocks as Over Exploited, Critical and Semi-Critical ........................... 25
Figure 15 Water Governance Value Chain Pertaining to Textile and Leather Industry Water Use in India.......... 31
Figure 19 Understanding Major Implementation Challenges for ZLD in Faridabad-Ballabgarh Cluster ............... 43
7
Abbreviations
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Chapter 1 Introduction
1.1. Background
With over 1.2 billion people or 18% of the world’s population1, India is the second most populated
country in the world and has the potential to be the world’s second largest economy by 2050. This is
a tremendous challenge considering that India has merely 4% of the world’s renewable water
resource. Population increase and economic growth imply greater demands for natural resources
and even greater challenges to deal with increased pollutions and to mitigate environmental
degradation. The Twelfth Five Year Plan (2012-2017) aims to reverse the observed deceleration in
growth and return to nine per cent growth by the end of the period in order to realise the vision of
‘Faster, Sustainable, and More Inclusive Growth’.2
Water risks will largely influence India’s ability to realise its development vision. About 50 per cent of
annual precipitation occurs only in 15 days in a year. Currently, one third of the region lies in water-
scarce areas with water availability of less than 1000 m3/person/year. By 2030, India will face 50%
aggregate gap between water availability and water demand.3 India’s aspired growth will further
strain water availability and brings about further challenges of allocating water among different
types of users. Climate change and variability will render even more erratic distribution of
precipitation over time and region in India and impose higher water-related risks, such as floods,
droughts, and storms. The increasingly scarce resource will make water allocation a very sensitive
issue. If trade-offs are not managed well, increasing conflicts among different groups of water users
can take place.
To a large extent, the mismanagement of water resources has exacerbated the problems of water
scarcity and variability, leading to critical situations in many parts of the country. Leakage and
inefficiencies in the water supply system account for nearly 50 percent of municipal water use. Over
70 per cent of surface and groundwater resources are contaminated.4 Low awareness about water
scarcity and its social economic values as well a lack of a harmornised perspective in planning,
management and the use of water resources underlie this mismanagement.5
Textile industry is one of the oldest as well most important industries in Indian economy. It accounts
for around 2% of GDP, 8% of excise and customs revenue collections, 14% of the industrial
production and 12% of the total manufacturing export earnings. The sector employs nearly 35 million
employees and it is the second-largest employment generating industry in both rural and urban
areas, after the agriculture industry. 6 Since textile industry is highly water intensive and India had
been identified as a highly water scarce region, the long term viability of the Indian textile industry
hinges heavily on sustainable water management in India.
Water governance is the key to ensure that beyond the technical engineering solutions, there exists
supporting systems of coordinated regulations, institutions and incentives to balance various needs
for water.
1.2. Objective
This report aims to:
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a) Assess physical and regulatory water risks pertaining to the textile industry in India.
b) Investigate water governance landscape in relation to the textile industry in India.
c) Inform priority areas for the needs of capacity building in sustainable water management in
the textile industry in India.
1.3. Methodology
The information, analysis and recommendation in this report are built on:
a) Comprehensive desk research and data review of international and local sources.
b) Interviews with a number of stakeholders, which include public actors (government agencies,
researchers, experts, and civil societies) as well as private actors (business associations,
suppliers and technology solution providers).
c) Inputs from the stakeholders gathered during the capacity building workshop held on 24 Nov
2016 in new Delhi.
The Faridabad-Ballabgarh cluster in Haryana has been chosen as the focus area due to its industrial
significance to STWI Projects and severe challenges of water issues as follows.
1. STWI has been closely associated with the textile wet processing units in this region in its
earlier phases (SWAR project), which accounted for maximum concentration (almost 60%,
i.e. 11 out of 18 units) of wet processing units in the NCR region.
2. Recent Zero Liquid Discharge (ZLD) policy currently drives action related to efficient water
use and management in the Faridabad-Ballabgarh region.
The ZLD policy, which requires the textile wet processing units amongst others to adopt
practices to ensure complete recycling of the industrial effluent and concentration of the
solute into a solid mass by means of evaporation by December 2016, is a major initiative
taken by the Central Pollution Control Board (CPCB) to regulate pollution and water
abstraction by industries.
Faridabad and Ballabgarh are major industrial towns in Haryana, having almost 1500
registered factories, such as textile manufacturers, fertilizer, electroplating works that mostly
generate hazardous waste. A decline in groundwater level and its pollution are major
problems for the region that needs immediate attention. Pollution of the shallow
groundwater has partly affected the district with high salinity (electrical conductivity
>3000μS/cm at 250C), fluoride (>1.5mg/l), iron (>1.0mg/l), nitrate (>45 mg/l) and lead (above
0.01 mg/l).7 Concentration of heavy metals in this area has been attributed to the discharge
of industrial effluents.8 Two blocks in the Faridabad district have also been notified as semi
critical highlighting the problem of groundwater decline. In response to the current
groundwater overexploitation, the Municipal Corporation of Faridabad and Ballabgarh have
been notified by Central Ground Water Authority (CGWA) to regulate the state of
groundwater development in the district9, which was estimated to be 81% while the
projected demand for domestic and industrial use by 2025 would be 27.46 mcm.10
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Chapter 2 Textile Industry in India
A number of factors that make India outshine in textile industry are low cost skilled manpower,
availability of cheap raw material, availability of numerous varieties in cotton fiber, a big and
potential national and international market and independent textile industry (Dey and Islam 2015).
Nevertheless, its environmental and social sustainability constitute the key challenges of the
industry. With a long and complicated supply chain, the industry affects the environment adversely
at each stage of the supply chain process. In terms of resource use, freshwater, energy, and other
valuable resources are consumed during the manufacturing process. The most significant effects of
the textile industry to the environment are air and water pollution.
Most of the water used in the manufacturing is returned to nature elsewhere; the demand affects
local availability for other users. In most places where textile production takes place today, the
competition for freshwater between different sectors in society increases rapidly. A large amount of
wastewater is generated especially in the dyeing and bleaching processes resulting in polluted
effluents that often end up in water bodies. The textile sector is one of the major industrial polluters,
especially due to the many micro, small, and medium sized factory units.13
The policy on Zero Liquid Discharge (ZLD) for the textile industry was already started in Tamil Nadu
back in 2008. Many businesses were shut down by the order of the state’s High Court due to their
inability to meet compliance requirements. Surviving businesses set the benchmark on operating
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with very limited amount of water. ZLD policy has now been expanded to cover nine states along the
Ganges basin and applied to five sectors – textile, pulp and paper, distilleries, tanneries, and sugar –
with varying compliance timeline. For the textile industry, the sector is expected to meet compliance
by December 2016.15 Further details on the ZLD policy are discussed in Chapter 5 on water
governance landscape.
India’s textile sector needs a long term roadmap for sustainable growth and increasing
competitiveness across each part of the textile industry value chain. The national textile policy should
provide such a roadmap and have an integrated policy that improve the competitiveness and remove
barriers across the diverse 113 textile clusters across the country. This competitiveness also entails
environmental sustainability that meets international regulations for export markets as well as
domestic regulatory requirements.
In building the awareness regarding cleaner production in the textile industry, CSE has done a
collaboration with the Swedish Environmental Protection Agency (Naturvårdsverket). This
collaboration entails capacity building programme of government officers on environmental
governance and producing a film on the Swedish experience in shifting to environmental-friendly
textile production.i
The production of finished textile product from fibre involves a long, complicated process comprising
of many processes and different permutation and combination of separate processes. Textiles can be
broadly classified into three groups depending on the end use: 1) fashion and clothing; 2) industrial
and technical; and 3) furnishing and domestic. Textile production can be vertically and horizontally
designed depending on whether all parts of production are done by the one company or different
companies specialized in specific aspects of the production. This specialisation is greatly influenced
by the industrial history and geographical location of the companies.
The supply chain for the industry is sketched below. The wet processing unit of the industry is the
most water intensive and has the highest pollution potential. This is the chain that requires most
intervention to improve its water management.
i
The film is available at https://youtu.be/DBwhptqEoFY
12
Figure 1 Supply Chain Components for Textile Industry
13
The state has a substantial presence in terms of industrial growth with more than 1670 large and
medium enterprises that have generated employment for almost 3.36 lakh (336000) people and
around 90,000 Micro and small enterprises providing employment to 8.9 lakh (890000) people.
The state has seen a fairly good economic growth over the years with an Average Annual Growth
Rate of state Gross Domestic Product (GDP) of 7.8% for the year 2014-2015. The industrial sector
contribution to state GDP has also risen over the years, underlining the high potential in Haryana for
industrial growth.
12
10
8
Percent
6
4
2
0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Year
India Haryana
14
Textile Sector: A Key Engine of Growth in Haryana
Haryana saw a continuous growth in the manufacturing sector as shown by the Index of Industrial
Production (IIP)ii, which in general has increased steadily over the years (Table 2). Even though there
was a decline in textile manufacturing sector in Haryana in 2011 – 2013 as a result of global
slowdown of the industry, the sector picked up the pace and grew at a much faster rate in the last
couple of years.
Table 2 Index of Industrial Production for manufacturing sector with base year 2004-2005
Industry group Index
2011-2012 2012-2013 2013-2014 2014-2015
Manufacturing 165.9 173.6 177.8 187.6
Source: Department of Economic and Statistical Analysis, Haryana
The textile industry saw a growth surge in the last few years. Not only did it become an important
contributor in the total growth of the manufacturing sector of the state but it also played a
significant role in the growth of the state economy as a whole. Rising production and exports of
readymade garments resulted in export revenues increased exponentially from 266.21 million USD in
2010-2011 to 492.65 million USD in 2013-2014.
1000
In million USD
500
0
2008-2009 2009-2010 2010-2011 2013-2014
Year
Export of readymade garments (in million USD)
ii
The Index of Industrial Production (IIP) is a key economic development indicator for measuring and analyzing the trend of industrial
production for different sectors like manufacturing, basic goods, electricity, etc. over a period of time with reference to a chosen base year.
It is an abstract representative number to measure the level of industrial performance and the growth of industrial sector in the economy.
It shows the relative change in the volume of industrial production over time and is used by Government Departments, Research Institutes,
Industrial Associations, Academicians, etc. for policy making and research.
15
Chapter 3 Water Resources Management in India
Water management in India is intricately woven into the cultural fabric of the country with its social,
economic, political and ecological significance. Factors like caste-class differences, heterogeneity of
farmers as the major sectoral water user, rural-urban dichotomy, and extremely varied ecological
conditions, have often led to water management being a very contentious and tricky affair.18
After its independence, India has made large-scale water investments in water storage that have
contributed considerable to sustain its economy. According to the World Bank19, India has the
capacity to store 200 BCM of water, an irrigated area of 90 Mha, and an installed hydropower
capacity of about 30,000 MW. Nevertheless, rapid development, increasing population and
mismanagement of water has rendered water demand to far outweigh its supply. Per capita water
availability has shown a sharp declining trend, as shown in Figure 5, from 5177 m3/person/year in
1951 to 1820 m3/person/year in 2001, and now it stands at 1170 m3/person/year in 2010. The latest
figure from the World Development Indicator of water availability at 1130 m3/person/year in 2013 is
even lower than the government’s prediction of water availability at 1140 m3/person/year by 2050.
m3/person/year
(2015)22.
Figure 5 Freshwater availability in India (m3/capita/year) from 1951-2013
3.1.1. India’s
India’s Water Budget
The country’s water budget provides an understanding of a portfolio of available freshwater sources
in India. There are two official estimates from the Ministry of Water Resources (MoWR) that differ in
the assumption of evpotranspiration rate: MoWR’s estimate of 40% evapotranspiration rate and the
global evapotranspiration rate of 65%. Both provide more or less similar insight. The first one puts
the annual utilizable water of 1,123 BCM, which is well above the current water use of 634 BCM
according to the Planning Commission (2010); while the second estimate23 gives the utilizable water
at 654 BCM, which is nearly the same as the current water use. These second estimates invoke a
16
very alarming situation and illustrate a spectrum of water availability that relates to temporal and
spatial variation.
Rainwater
India has the highest long-term average precipitation in the world for its size with 1,160 mm, most of
which occurs during 4-5 months of monsoon season (June to October). There is a high variability of
rainfall across the country with excessive rainfall of 1250-2500 mm in the Western Ghats and the
outer slopes of Himalayas; while arid and semi-arid western and north-western parts have 250-750
mm. The past 100 years meteorological data shows a very significant variation in precipitation across
years and within the year as illustrated in Figure 6. A higher interannual variability is observed both in
areas with very low average annual precipitation, i.e. the north and north-western India, and those
with the highest average annual precipitation, e.g. some parts of Eastern India27. Rainwater
harvesting is increasingly used by the industry to anticipate water cuts during shortages.
Surface water
Surface water system in India comprises of 20 major river basins (Figure 7), with seven rivers and
their tributaries feeding into these river basins. Thirteen of them are large basins with an aggregate
catchment area of 2.6 million km2 and covering 81 per cent of the country. Fourteen of these 20
river basins are already water-stressed. 28
Groundwater
India is the largest consumer of groundwater in the world with an estimated water use of
230 billion m3/year, of which about 90% is for irrigation and the rest for industrial and domestic
purposes. As the main source of water supply for more than 60% of irrigated agriculture and 85 per
cent drinking water, groundwater is very important for rural communities. The urban and industrial
reliance on groundwater is also increasing over time.29 Most textile units rely on groundwater use,
either through own wells or water tank sellers.
17
Source: Devineni et al (2011) in Perveen et al (2012).30
Notes: (a) mean annual precipitation and (b) variability in precipitation
The notion of groundwater as private resources, which are linked to land rights, has led to the
exploitation of the resources with currently over 20 million users, which renders groundwater
management a very challenging issue. The unsustainable use of groundwater resources has led to a
drastic decline of the groundwater table and saltwater intrusion in many parts of India. The way
18
India will manage its groundwater resource will clearly have serious implications for the future
growth and development of the water resources, agriculture, and food sectors in India, as well as the
alleviation of poverty.
The Himalayas provides freshwater resources to India’s three main river basins (the Indus,
Brahmaputra and Ganges) and its water yield per unit area from the region is double that from the
peninsular systems34. The Indian Network for Climate Change Assessment (INCCA) predicts an
increase of annual temperature from 0.9+0.60C to 2.6+0.70C by 2030, resulting in increased water
yield in the Himalayan region while the glacier remains, especially for Indus basin by 5-20%, which
will be good for water supply and hydropower but aggravate flood risks.35 Predicted changes in
precipitation pattern across the country highlights the fact that climate variability will impose newer
future challenges. For example, the shifts in southwest monsoon system in India can imply
catastrophic effects in the form of floods, droughts and famines. Eventually, these hazards will
increase the vulnerability of the communities through ecosystem degradation, reductions in water
resources and food availability, and changes in livelihoods36. The main challenges for the water sector
is to build the resilience to the increasing climate variability.
Coastal aquifers in India already experience degrading water quality due to pressure from
anthropogenic activities, such as high population, intense land-based activities, overexploitation of
freshwater aquifers, and lack of sustainable water management system. Salinity ingress is taking
place in Tamil Nadu and Saurashtra, while inland salinity takes place in Rajashtan, Haryana, Punjab
and Gujarat. Predicted sea level rise will exacerbate salt water intrusion.
In view of those impacts, the NWM identifies five main goals: 1) comprehensive water data base in
public domain and assessment of impact of climate change on water resource; 2) promotion of
citizen and state action for water conservation, augmentation and preservation; 3) focused attention
to over-exploited areas; 4) increasing water use efficiency by 20%; and 5) promotion of basin level
integrated water resources management.
The NWM undertakes critical action points and timeline for each of the goal above and the latest
timeline was scheduled in 2017 for rainwater harvesting and groundwater recharge programme,
under goal (3). The critics underscored lack of attention to water sector in NAPCC compared to the
energy sector. Moreover the goals have insufficient targets and actually require a significant
paradigm shift in the institutional mechanism of how water resources are governed in India at
different levels. Considering the vast geographical and socioeconomic profile across the region, the
necessary adaptive decision making processes prove to be very challenging.
19
Chapter 4 Physical water risk outlook of the textile and leather industry
Meanwhile, declining availability of freshwater resources at a much faster rate than predicted (Figure
5), resulting in an increasing gap between future water demand and water availability. The demand-
20
supply gap at the basin level according to 2030 Water Resources Group indicate that merely a few
basins will experience surplus, while the rest of the basins will mostly have moderate (0-20%) or
severe (20-80%) scarcity gap.3 Climate-induced water variability adds further water stress across
spatial and time scale, especially at the district level. A study by the Columbian Center for Water
produces water stress index that takes into account the variations of water demand and renewable
water supply within and across the year (Figure 9). Considering increased competition of water use
across sectors and different policy across states, this information will be most meaningful for the
industry at a district level to better anticipate and manage water risks within a year and overtime.27
The stage of groundwater developmentiii increased to 61% in 2009 from 58% in 2004 depicting
increasing pressure on the groundwater resources39. The Indus-Ganges-Brahmaputra basin, covering
the states of Punjab, Haryana, Uttar Pradesh, Bihar, West Bengal and North Eastern Valley, has a
relatively high replenishable groundwater recharge of 0.25m to more than 0.5m.39 However,
unprecedented exploitation has caused the development status to be higher than 100%, implying
much higher annual groundwater abstraction than the recharge rate. As a result, the groundwater
tables decline by 0.4m a year according to Delhi Jal Board, which is responsible for water supply.
iii
Stage of groundwater development is defined as the annual gross groundwater draft divided by the net
annual groundwater availability. http://planningcommission.gov.in/aboutus/committee/wrkgrp12/wr/wg_susgm.pdf
21
Source: Groundwater Year Book, CGWB, 2013-2014
CPCB monitors the water quality in the country under the National Water Quality Monitoring
Programme through different monitoring units. This monitored data is analysed and categorized
according to priority depending on the BOD levels at the monitoring stations.
The Ganges basin is the world’s largest and most populous river basin that covers 9 states in India,
(including Haryana), Bangladesh, Nepal and Bhutan. Water quality monitoring of the Ganges Basin is
conducted by the State Pollution Control Boards of Uttarakhand, Uttar Pradesh, Bihar, West Bengal,
Haryana, Himachal Pradesh, Rajasthan, Madhya Pradesh, Jharkhand, Central Pollution Control Board,
Central Ground Water Board and the Central Water Commission.
22
monthly or quarterly observations for 68 parameters of surface water quality, while CPCB observes
six quality parameters (pH, conductivity, Dissolved Oxygen or DO, Biological Oxygen Demand or BOD,
total coliform and fecal coliform) at 233 locations. The monitoring results in 2009 show that organic
pollution persists to be the predominant pollutant as indicated by high BOD and conductivity values.
Table 5 Places on the Ganges Basin which do not meet the criteria set by CPCB
Parameter Desired range Observed range Places not meeting criteria
According to the CGWB, the Ganges basin is severely affected by arsenic, fluoride, nitrate, chloride
and salinity. Haryana has higher than permissible levels of salinity, chloride, fluoride and nitrate.
Salinity hotspots in Haryana are Faridabad, Gurgaon, Jhajjar, Panipat, Rewari, Rohtak, Sonepat
districts of Haryana. Nitrate is the most common contaminant of ground water43 and can cause
serious health issues.
Until 1990 India had just one Common Effluent Treatment Plant (CETP) in Jeedimetla, near
Hyderabad. This number rose to 150 by 2011. The distribution of these CETPs across India is shown in
Table 6. Eventhough these CETPs were built and even upgraded to the best available technology, the
CPCB study of 78 operating CETPs in 2005 (Table 7) showed unsatisfactory performance for many of
23
them. The sub-optimal performance of the CETPs could be attributed to the poor operation and
maintenance. Furthermore, high TDS content in the influent compromised the efficiency of CETPs.44
24
4.2. Physical
Physical Water Risks in the State of Haryana
25
Faridabad and Ballabgarh are major industrial towns in Haryana, having almost 1500 registered
factories like textile manufacturers, fertilizer, electroplating works, etc., of which many generate
hazardous waste. Decline in the groundwater level and its pollution are major problems for the
region, which needs immediate attention. STWI Projects in particular has been closely associated
with the textile wet processing units in this region in its earlier phases through the SWAR project.
Almost 60% (11 out of 18) of the participating factory units within SWAR Project are wet processing
units in the NCR region. Therefore, the Faridabad- Ballabgarh cluster in Haryana been chosen as the
focus area for the purpose of the study for the industrial water governance project.
Faridabad district, with two blocks notified as semi critical has a major problem of groundwater
decline plaguing it. In response to the current overexploitation in the region, Municipal Corporation
of Faridabad and Ballabgarh have been notified by CGWA to regulate the state of groundwater
development. The annual replenishable ground water resource of Faridabad as on 2011 was
202.28 mcm. The stage of groundwater development in the district was estimated to be 81% and the
projected demand for domestic and industrial use upto 2025 was reported to be 27.46 mcm.9
Irrespective of the increasing gap between the supply and demand for water, not much increase in
the pricing of water by the Public Health and Engineering Department has been seen. The industrial
water supply rate has increased merely from 0.05 USD/ kl in 2006 to 0.06 USD/ kl. The wastewater
disposal charges in 2006 were 0.02 USD/kl (wastewater discharge was taken to be 70% of the water
consumed), which was changed to 25% of the total water charges. Considering substantial increase in
water demand for industrial use, it is necessary to have a revision of water pricing.
26
4.2.2. Increasing Water Pollution Problem of Haryana
Apart from water availability, the problem of water pollution also plagues the industrial belt of
Haryana. Haryana state has three river stretches falling under priority 1 and one stretch each under
priority 3 and 5.45 Priority level of river stretches is set by CPCB based on the risk defined as a product
of frequency of violation of criteria and magnitude. The degree of violation is with respect to water
quality criteria for drinking water source with conventional treatment with respect to BOD.
Table 9 Categorization of Polluted Stretches of River in Haryana according to the BOD Level
River Polluted stretch Source/town Monitoring location BOD
(mg/l)
Polluted River Stretches: Priority 1 (BOD>30mg/l and BOD exceeding 6mg/l on all occasions )
Ghaggar Interstate border of Industrial & 1. Before Ottu Weir (Before Mixing of Satluj 50
Punjab & Municipal waste Canal Water)
Haryana to Ottu from Patiala, 2. Gh-1 At Road Brdg. Sirsa,Debwali 33
wier at Sirsa Derabassi, Sirsa Road
3. Gh-2 At Chandarpur Syphon 40
4. Near Bankarpur, Dera Bassi 22
5. U/S Dhakansu Nallah 21
Markanda Kala Amb to Industrial & 1.Kala Amb D/S 590
Narayan Garh Domestic waste
from Kala Amb
Western D/s of Yamuna Yamuna Nagar 1. 100 meter D/s after receiving 247
Yamuna Canal Nagar Industrial & Industrial & Sewage effluent
Domestic
wastewater 2.At Damla d/s of Yamuna Nagar 188
Polluted river stretches: Priority 3 (BOD between 10 & 20 mg/l and BOD exceeding 6mg/l on all occasions)
Gurgaon D/s of Delhi Delhi 1. GC-1 Near Badarpur Border 24
Canal
Polluted river stretches: Priority 5 (BOD between 3 & 6 mg/l)
Yamuna Kalanaur to Sonepat - 1. Hathnikund 3
2. At Kalanaur 4
3. At Sonepat 5
4. U/s Paonta Sahib 3
Source: Central Pollution Control Board
River stretches having BOD more than 30 mg/l and more than 6 mg/l on all occasions is categorized
as priority 1 because the associated risk is the highest. BOD of 30 mg/l is the criteria for sewage
treatment plant and in the river without dilution. BOD beyond 6 mg/l greatly reduces the DO level
and BOD greater than 5 mg/l forms complex chemicals on chlorination for municipal water supplies,
thus the associated rivers are considered as high risk zones. Priority 3 has relatively less risk because
the BOD ranges between 10 and 20 mg/l and exceeds 6mg/l on all occasions. Priority 5 is considered
to have the least risk because the BOD level is much lower than the rest and only the areas having
BOD greater than 3mg/l and less than 6 g/l.
River Yamuna is one of the most important tributaries of Ganges, having a catchment of 21265 km2 in
Haryana state alone. Almost 500 km stretch of this river is in deteriorated condition and unsuitable
for designated best use.
27
Table 10 Observations for river Yamuna
Parameter Value
pH 7.0-9.4
Conductivity 80-3040 μmhos/cm
DO 0.0-17.9 mg/l
BOD 0.2-103 mg/l
Fecal coliform 9- 21, 00,00,00,00 MPN/100ml
Total coliform 4- 23,00,00,00,000 MPN/100ml
Source: Ministry of Water Resources, 2009
Table 11 The Surface Water Quality Level in Haryana at Some Monitoring Stations
Parameter Value
Gurgaon canal Gurgaon canal Yamuna river u/s at
upstream downstream Manjhawali village
Fecal Coliform (MPN/100ml) 1100 1400 1700
Total Coliform (MPN/100ml) 3300 5000 7000
Dissolved Oxygen (mg/l) 1.6 1.2 2.3
Biochemical Oxygen Demand (mg/l) 2.04 2.95 1.82
Conductivity (microsiemens/cm) 922 952 1214
pH 7.04 7.08 7.17
Sodium Absorption Ratio 2.3 2.12 2.26
Chemical Oxygen Demand (mg/l) 98 112 134
Source: India Water Tool, 2013
The groundwater quality is also a grave problem with salinity, high fluoride, and arsenic as the major
concern for the state.9
28
Decline in groundwater level and its pollution have become the main concern for the region.
Depleting groundwater level was unanimously stated as one of the greatest challenges for the textile
industry. It also degrades the quality of the groundwater, which then increases the challenge for the
water intensive industry. The declining groundwater table also increases abstraction and processing
cost for the industry.
The indiscriminate disposal of waste in the last decade by the industry has brought about the
deterioration of water. Pollution of the shallow groundwater is the reason for high concentration of
fluoride, chloride, sulphate, nitrate in most parts of the region. Concentration of heavy metals in this
area is attributed to the discharge of industrial effluents and needs immediate attention.47 The three
primary reasons that has brought about deterioration of water quality are:
The Faridabad-Ballabgarh region in Haryana suffers from the problem of very high Total Dissolved
Solids (TDS) value. The high TDS levels of the region drives the industries to depend greatly on
tankers for water availability. The TDS in the region is in the range of 2500-3000 mg/l, while the
water supplied by the tankers has TDS value of about 1000 mg/l. The maximum TDS allowed for the
operation of the boiler is 200 mg/l, for which the industries need to depend on RO systems with an
efficiency of about 50%. It implies that 50% of the water fed into the RO system is discarded and due
to its high TDS value it cannot be used for other purposes. The majority of the industries in this
region partly or completely depend on tankers for water supply. The water is purchased at the rate
of about 8.84 USD/ 12 kl, which acts as an incentive to minimize the amount of water used.
Driven by the ZLD policy, the region is currently motivated to take up measures to ensure that toxic
waste from the industries does not further degrade the streams, rivers and other water bodies.
29
Chapter 5 Water Governance Landscape Pertaining to Textile Industry
Industry
Each of those regulatory bodies play crucial roles in the value chain of water governance to ensure
sustainable development of the textile industry by means of various laws, regulations and initiatives
which can be delineated as below. These value chains of textile water use entail water allocation to
the industry; water abstraction or water use permits and pricing by companies; water savings or
water use efficiency in the production process; water pollution prevention and control, including
permits and pricing, water reuse and return flow to water environment.
30
Key actor Central Ground Water Board Central Ground Water Board Industries, Central Pollution Control Board (Ministry of Environment, Forest and Climate Change)
(Ministry of Water Resources, (Ministry of Water Resources,
River Development and Ganges River Development and Ganges Ministry of Textiles
Rejuvination), Rejuvination)
Laws/ 1) National Water Policy, 2012 1) National Textile policy, 2000 1) The Water (Prevention and Control of Pollution) Act, 1974
regulations 2) The Water (Prevention and Control of Pollution) Cess Act, 1977
Figure 15 Water Governance Value Chain Pertaining to Textile and Leather Industry Water Use in India
31
5.1.1. Key Actors and Their Roles
a) Advisory on matters relating to the prevention and control of pollution and restoration of the
quality of water and Coordinate the activities of the boards at the state level and resolve disputes
amongst them.
b) Monitoring and regulation of water pollution prevention and control, e.g. by establishing and
modifying standards for wells or streams.
c) Training and capacity building, i.e. through technical guidance and all types of assistance for the
state boards; prepare guidelines and manuals on treatment of effluents; plan and organize
nationwide programmes; conduct mass awareness campaign; and collate and publish technical
and statistical data on water pollution.49
The NRCP was launched in 1985 as the Ganges Action Plan (GAP) Phase I with the primary aim to
prevent the pollution and improve the quality of the Ganges. GAP Phase II approved Yamuna and
Gomati Action Plan in 1993. Other major river conservation programmes were approved in 1995. In
1996, GAP II and NRCP were finally merged.51
The NPCA programme of NRCD aims at improving and conserving aquatic systems such as lakes and
wetlands by means of uniform policy, guidelines and conservation strategies. 52
32
B. Ministry of Water Resources, River
River Development and Ganges Rejuvination
The Ministry of Water Resources, River Development and Ganges Rejuvination (MoWR), is primarily
responsible for the development, management and conservation of India’s water resources. The
ministry performs its functions through its 2 attached offices, namely Central Soil and Material
Research Station and the Central Water Commission. It also has 7 sub-ordinate offices which helps
the ministry in its functioning: Central Ground water Board, Ganges Flood Control Commission,
Central Water and Power Research Station, Farakka Barrage Project, Banasagar Control Board, Sardar
Sarovar Construction Advisory Committee and Upper Yamuna River Board.53 The functions allocated
to the ministry are as follows:
a) Advisory: plan and coordinate policies for the water resource sector; facilitate resolution of
disputes relating to inter-state rivers, and carry out negotiations with riparian countries regarding
shared water resources.
b) Monitoring and regulation through groundwater management and ensuring conjunctive use of
ground and surface water
c) Training and capacity building, i.e technical, infrastructural and research support for water
development; central and external financial assistance for specific projects; and determine water
balance of different basins and sub-basins for the consideration of inter basin transfers.54
33
Central Ground Water Authority
The Central Ground Water Authority was constituted to regulate, develop and manage the ground
water resources of India under Section 3 (3) of the Environment (Protection) Act, 1986. The CGWA
has three key regulatory functions:
a) Regulate the ground water withdrawal by industries or projects for the over exploited and critical
assessment units. SPCB and MoEFCC need to refer to CGWA for permission to establish a new
industry or process in critical zones.
b) Notify critical/overexploited areas, e.g. in Haryana for control and regulation of the resources.
c) Prohibit construction of new groundwater structures in notified area,s except drilling of tube-
wells for drinking water supply by government agencies.55
a) Advise the government on water resources development and act as Central Bureau of
Information relating to water resources, including production of relevant statistical data.
b) Undertake river valley development project on behalf of the national and state government .
c) Training and capacity building through investigations and surveys for development of the river
valleys for various purposes including water supply, power generation, flood management,
irrigation and restoration; undertake research on various aspects of river valley development
schemes; and promote modern data collection techniques such as remote sensing technology.
CWC also has a Yamuna Basin Organization who is responsible for observation of relevant data and
flood forecasting in relevant states including Haryana; monitoring of schemes such as the
Accelerated Irrigation Benefit Program (AIBP), Common Area Development (CAD) Programme and
restoration of water bodies.56
D. Ministry of Textiles
The Ministry of Textiles is responsible for formulating policies, planning, developing, promoting
exports and regulating trade of the textile industry, which includes all types of natural and man-
made cellulosic fibres used in the making of textiles, handicrafts and clothing. The Ministry’s vision is
to improve industrial production capacities to ensure a global standing in the manufacturing and
exports of all the types of textiles. It also works towards preserving the cultural heritage associated
34
with the industry and promote handlooms and handicrafts for economic development. The Ministry
also promotes growth and technological upgrade for sustainable development of the industry.58
a) Ensure expeditious and effective disposal of cases related to conservation and protection of
environment and its natural resources.
b) Enforce legal right relating to environment and giving compensation and relief to persons and
property for damages.
c) Handle environmental disputes.59
a) Establishes CPCB (Subs. by Act 53 of 1988, s. 3) and SPCB (Subs. by Act 53 of 1988, s. 4).
b) Authorizes the CPCB to pass directions to SPCB. In case of inconsistency between the directives
from CPCB and the state government, the matter is to be referred to CPCB.
c) Empowers state governments to restrict the act to certain area in consultation with SPCB.
d) Authorizes SPCB to carry out survey of any area and keep the records of the characteristics, flow
or volume of a stream and collect samples of any trade effluent, sewage or stream for the
purpose of analysis.
e) Prohibits the disposal of polluting matter into a stream or well.
f) Restricts the establishment of a new industry, process or treatment disposal system, which is
most likely to discharge effluent or sewage without previous consent of SPCB.
g) Authorizes SPCB to refuse or withdraw consent in the absence of treatment and disposal system
for an industry, operation or a process.
4 Pollution as defined In the act is “contamination of water or such alteration of the physical, chemical or biological properties of water or
such discharge of any sewage or trade effluent or of any other liquid, gaseous or solid substance into water (whether directly or indirectly)
as may, or is likely to, create a nuisance or render such water harmful or injurious to public health or safety, or to domestic, commercial,
industrial, agricultural or other legitimate uses, or to the life and health of animals or plants or of aquatic organisms”
35
h) Prescribes a time frame to install a treatment plant to meet the provisions of the act and
empowers the Central Board to establish and modify standards.60
C. The Water (Prevention and Control of Pollution) Cess Act, 1977(amended in 1992, 2003)
The Water Cess Act was passed in 1977 and further amended in 1992 and 2003 with the aim to
augment the resources of the Central and State Pollution Control Boards. The Act made provisions to
charge and collect cess (taxes) from specified industries mentioned in Schedule I for various
operations and process specified in Schedule II. The amendment in 2003 omitted the Schedule I and
defined Industry as “any operation or process, or treatment and disposal system, which consumes
water or gives rise to sewage effluent or trade effluent, but does not include any hydel power unit”.
Schedule II includes various processes in which water is consumed, such as cooling, spraying in boiler
feeds or mine pits; for domestic purpose; processing which may pollute the water. The cess charge
depends on the process involved. The amendment also authorizes the Central Government to
exempt cess from any industry consuming water less than mentioned in the after considering: the
nature of raw material, manufacturing process, source of water abstraction, effluent receiving water
body, and production data, including water consumption per unit production, in the industry and the
location of the industry.62
The act supports the formulation of National Framework Law as a guiding statement for assisting
governance in each state. A number of issues are addressed within the NWP, such as the minimum
amount of potable water and its adaption due to climate induced variability; water footprint in of
industrial projects; water reuse and recycle; the use of new strategies like rainwater harvesting,
avoiding evapotranspiration, desalination, and water pricing issue. It views that water needs to be
fairly priced to ensure its efficient use and equitable access for all purposes, as decided by an
independent Water Regulatory Authority established by each state after stakeholder consultation .63
A National Water Board was constituted in 1990 under the chairmanship of Secretary of MoWR to
review the implementation and progress of NWP and report periodically to National Water
Resources Council that has the Prime Minister as its chairman.64
36
Source: Ministry of Haryana
a) Advise state government on the prevention and control of pollution and the location of any
industry which is likely to pollute a stream or well.
b) Monitoring and regulation of policy by inspecting industrial effluents and plants; setting
standards for industrial effluent and ambient water quality; varying or revoking any orders as
well as requiring construction or modification of systems for the prevention, control and
abatement of water pollution.
c) Planning and implementation of reliable and economic methods of effluent treatments.
d) Training and capacity building, e.g. through comprehensive programmes, publishing information,
research and investigations, training programmes and mass education, for the prevention and
control of pollution. 65
B. Department of Environment
The Department of Environment was established in 1989 to coordinate the working of the HSPCB to
ensure effective implementation of all the laws and acts regarding environment and pollution
control.66
37
Key actor Public Health and Public Health Industries Haryana State Pollution Control Board (HSPCB)
Engineering and
Department Engineering Department of Environment (DoE)
(PHED), Department
(PHED) Public Health and Engineering Department (PHED)
Municipal
Corporation of
Faridabad (MCF)
Roles PHED: PHED: Industries- HSPCB:
1) To supply water 1) To fix the 1) To adopt water 1) To provide No Objection Certificate for establishment of
to urban and rural price for water efficient a new industry
areas except supply to technologies 2) To monitor the quality and level of pollution in the
panchkula and industries receiving water
Faridabad 3) To plan and execute programmes for prevention and
Abstraction of control of water pollution.
MCF: groundwater is 4) To advise state government on prevention and control
1) To supply water overlooked by of pollution
to Faridabad regional offices
district. of the Central DoE:
Groundwater 1) To assist in implementation of pollution prevention
Authority policies
(CGWA)
PHED:
1) To fix the price for wastewater discharge by industries
38
C. Public Health and Engineering
Engineering Department
The Public Health and Engineering Department (PHED) under the state government of Haryana was
established to provide adequate water supply and sewerage facilities, except in Faridabad and
Panchkula towns where Municipal Corporation of Faridabad and HUDA are responsible respectively.
The main functions of the department are:
5.2.2. Initiatives
In spite of the existence of various laws and regulations, the water resources have had a decline in
quality as well as quantity. Degrading quality of water resources pertaining to industrial wastewater
has called for effective initiatives to monitor and prohibit further pollution. The Government of India
has launched some major initiatives for regulating industrial water pollution, such as monitoring of
water quality, assistance to upgrade to water efficient technologies, development of Common
Effluent Treatment Plants, in order to ensure the protection and management of water bodies. The
following section discusses these initiatives.
39
1) Plan and prioritize pollution control strategies.
2) Gauge the extent and nature of pollution control measures required.
3) Evaluate and assess the effectiveness of existing measures for pollution control.
4) Assess the trend of the water quality.
5) Evaluate the assimilative capacity of the water body to reduce pollution control costs.
6) Understand the fate of pollutant in the water body.
7) Evaluate the suitability of water body for different uses.70
In 2007 the scheme for cluster development Small Industries Cluster Development Programme
(SICDP) was renamed as Micro and Small Enterprises – Cluster Development Programme (MSE-CDP).
The Integrated Infrastructural Development (IID) Scheme was also merged with MSE-CDP to upgrade
existing infrastructure and develop sites for new enterprises. The objective of MSE-CDP was to
address common issues, such as technology upgrade, improving skills and quality, enhancing market
access, developing self-help groups for capacity building, infrastructure upgrade, and setting up
common facility centres, such as raw material storehouse, testing centre and effluent treatment.71
The total cost for the project was to be jointly funded by a mix of equity or grants from the Ministry
of Textiles, state government, State Industrial Development Corporation, industry, project
management consultant and finally loans from banks and financial institutions. The support of the
central government is limited to 40% of the total project cost and a maximum of Rs. 40 crorev (US$ 6
million) by means of grant or equity for the textile park.
v
1 crore equals to 10 million.
40
1) Group A: Water treatment and effluent treatment plant and technology (including marine,
Riverine and ZLD), which is supported by mandatory grant from central government.
2) Group B: Common infrastructure, such as captive power generation plants on technology
preferably renewable/green technology.
3) Group C: Common facilities such as Testing Laboratories and R&D centres.
The cost of land is not part of the total project cost and the Indian Government shall not give grants
for the procurement of land which under the scheme is to be arranged by the Special Purpose
Vehicle (SPV). The total project cost shall be borne in the ratio 50:25:15:10 by the centre, state,
beneficiary, bank loan.73
G. Technology
Technology Upgradation Fund Scheme (TUFS)
The Technology Upgradation Fund Scheme (TUFS) aims to catalyze investment in the textile sector by
providing subsidies and assistance to upgrade existing technologies. The scheme covers technologies,
such as wet type venture scrubbers and dry type bag filter, which may be used in pollution control
and prevention.75 The subsidies motivates textile industries to switch technology to improve water
efficiency in the textile mills. An assessment by M/S CRISIL revealed that TUFS was helpful in
improving the quality of the entire value chain and reducing cost and waste.76
41
5.3. Regulatory Water Risk
Policy is currently driving action in the Faridabad-Ballabgarh textile cluster. The Zero Liquid Discharge
policy calls for adoption of practices to ensure complete recycling of industrial effluent and
concentration of the solute into a solid mass by means of evaporation by December 2016. This is a
major step which has been undertaken to ensure that the heavily polluting, water intensive industry,
such as textile units, does not further degrade the quality of the ground and surface water resources.
The region already has immense water scarcity and quality issue and in such a scenario it is a ray of
hope for the region.
However, this is also a big hurdle for the industries, which face the risk of increased production cost
and loss of market competitiveness, compared to those who do not face the same regulation.
Moreover, there are many challenges in the implementation of this policy. For this very reason
various stakeholders from industries, service providers, government representatives and educational
institutions were interviewed to trace out the implications, challenges and perceptions to risks with
regard to this recent ZLD policy.
“In the short run, textile industries may think that ZLD is not feasible but they need to learn from Tirupur and see
this as an opportunity of recycling water and hence saving on money”
“The small scale industries are employment generators and hence the government needs to be flexible in their
approach and should assist and support them”
The industries also stated that in a scenario wherein the policy is not properly implemented, the
medium and large scale industry may adversely get affected as the units that will implement ZLD will
face an increase in end-product cost and hence lose their competitiveness, in comparison to units
that do not need to comply with the policy.
However, most of the textile wet processing units in the focused clusters in Haryana view the ZLD
policy as an opportunity in the long run. These units believe that they will have enhanced
opportunities as the larger brands would prefer environmentally sustainable production and they will
not face undue competition from smaller units, which currently use non-compliant, low-cost
materials and processes, that do not properly treat their effluent.
“It was also stated that the increase in production cost would be most likely absorbed by the exporters. India would
not lose its competitive advantage in the global market due to low end product cost impact of the textile industry.
The ZLD initiative is also likely to reduce the gap between buyers and sellers and hence an opportunity for the
factory.”
- Creative Dyeing and Printing Mills
42
Moreover, since the impact on end product cost is not very high and ZLD would reduce the overall
chemicals and water requirement, the industries would benefit from the change in process
efficiencies. Hence, the ZLD policy may create shocks initially but would eventually consolidate the
industry and help it become more competitive both in domestic and international markets.
Financing
ZLD is likely to increase the cost of dyeing and coloring segment of the textile value chain by as much
as 6% to 10%. The capital cost and operational cost associated with the technology to achieve zero
liquid discharge is very high, which is a major risk for the industry. The capital expenditure for ZLD is
as high as Rs. 6 Crores for a typical 1000KLD plant, while the operating expenditure is three times
the amount for running the plant for just 6 years according to Business-as-Usual.77
The difficulty in the disbursement of loans and funds under some of the existing scheme (eg: TUFS) is
one of the key implementation barriers for the industries. The industry believes that there should be
incentives, such as low cost interest loans and fast tracking of loan processes, that ensure that the
industries do not bear undue losses in the process of implementing the policy.
“There is no subsidy for setting up ZLD units by individual industries and it is also difficult to avail
subsidies under the TUF scheme.”
43
It was also pointed out by different stakeholders that incentivizing the implementation of the policy
by proper financial instruments, especially for the small scale enterprises, is extremely important.
“There should be a roadmap which if followed by us would help us in getting funds from the financial
institution. Moreover, banks should be asked to fast track cases concerning loan for ZLD
implementation”
- Richa Industries
Technology
There are a plethora of technology options available in the market to achieve ZLD. However, all the
companies stated that too many options had created confusion for them and made them unsure
which technology would best fit them economically and otherwise. Lack of confidence and technical
knowledge about the Zero Liquid Discharge is a large implementation hurdle for them.
“Technology is a major barrier. No one seems to know exactly about the practical difficulties. Technologies like
Membrane Bio Reactor are being offered, which is not appropriate for textile wastewater”
-Richa Industries
The technology provider interviewed suggested that because the OPEX was much higher, the
industries should have a synoptic vision when they selected the ZLD technology as lower cost
technology might in the longer run incur higher operating cost and lead to plant shutdown.
“Technology is not a barrier, the industries should learn from Tirupur and the government should facilitate the
process, so the best can be made out from the Tirupur experience”
The companies also pointed out that lack of skillsets and difficulty in changing the mindset of the
skillsets was a major barrier.
“Changing the mindset of the operator is difficult and yet very important for optimizing water use and hence
capacity building is required”
Space
Setting up a ZLD plant requires a lot of space. Industry representatives pointed that most of the wet
processing units in the Faridabad-Ballabgarh region do not have enough space to install ZLD plant
within their factory premises.
Because industrial units in the region are dispersed and the collected wastewater may be
heterogeneous in nature, a Common Effluent Treatment Plant might not be a feasible solution,
unlike Tirupur, where the textile parks were already established.
“Nano-filtration alone requires about 25 sq. km. area, hence setting up a ZLD unit is difficult due to lack of space,
especially for the small scale industries”
“A CETP will be atleast 10-12 km far from the factory and getting clearances for it from different government bodies
will be nerve wrecking”
Tirupur has already implemented Zero Liquid Discharge and can be taken as an example for
implementation of the policy in the Faridabad-Ballabgarh region. Nevertheless, communication gap
between the authorities render provide a challenge to learn from the experiences of Tirupur. Hence,
most of the stakeholders were of the opinion that there was a lack of coordination and
communication that needed to be addressed to enhance learnings from past experiences.
It was stated by majority of the stakeholders that there is corruption, lack of transparency and
disclosures at both ends – industry as well as government agencies. There is lack of transparent
disclosure from the industry on parameters such as amount of groundwater extracted, installed ETP
capacity, effluent quantity and quality, etc.
“Transparency is low with very little disclosure from both industries and government and low participation as no
feedback is taken from the mill, however we are hopeful about increase in accountability with time.
On the other hand, the government agencies released the policy without prior consultation with the
industry. Though concerns raised by the industries after the policy was passed were forwarded to
Ministry of Environment, Forests and Climate Change (MoEFCC), the industry is still unsure to what
extent they would be addressed.
“There were a lot of complaints and queries raised after putting up of the notification in October which have been
forwarded to MoEFCC and shall be catered to”
45
Chapter 6 Capacity Building Workshop
6.1. Workshop
Workshop Organisation
Stockholm International Water Institute (SIWI) in collaboration with Sustainability Outlook under the
Sweden Textile Water Initiative Project organized a multi-stakeholder capacity building workshop
with a focus on driving innovations toward sustainable textile industry in India through ZLD Policy.
The workshop focused on the risks, opportunities and challenges faced by the industry in the
implementation of ZLD as an industrial water governance policy. This workshop also provided a
forum for the stakeholders to discuss potential incentive instruments and solutions to catalyse
technological, business and governance innovations toward sustainability as a competitive advantage
of the industry.
The capacity building workshop took place at the 6th Annual Summit of the Sustainable Business
Leadership Forum on 24th November 2016 at Hotel Taj Palace, New Delhi.
The first session saw participation from representatives from Central Pollution Control Board and key
textile industry representing both large and medium scale units. The opening remarks for the session
were provided by Ms. Josa Kärre, Head of Economic and Trade Section, Embassy of Sweden.
A snapshot of the Industrial Water Governance Report prepared by Stockholm International Water
Institute (SIWI) in collaboration with Sustainability Outlook was presented during the session. The
presentation elaborated on the evolution of policy in India with respect to industrial water
governance.
It was identified, that though there is high upfront and operational cost, the impact of ZLD on a shirt
would be less than 1% impact on the end product pricing. Hence, it does make sense to go for ZLD in
the industry. However, all the participants agreed that some major challenges which are decelerating
the uptake are lack of space, high implementation cost, by-product disposal, escalated carbon
footprint, lack of understanding of appropriate technology and lack of financing sources
46
5) The standalone large scale units were notified to meet the new standards; the large scale
units in environmentally sensitive /critical areas could be mandated to achieve Zero Liquid
Discharge by CPCB or SPCBs /PCCs with prior approval of CPCB.
The workshop also provided a forum for the stakeholders to discuss potential incentive instruments
and solutions to catalyse technological, business and governance innovations toward sustainability as
a competitive advantage of the industry. The participants for the group discussions included
representatives from textile wet processing industry, water treatment solution providers and catalyst
agencies.
1) What are the innovative ways for ZLD implementation through following interventions:
• Good Governance
• Incentivizing through Policy Instruments
2) How do we create standardization in operating performance and applicability of technologies
to enable different stakeholders (industry, policy makers, etc.) for smoother roll-out and
reliable implementation.
3) Given the pros and cons of individual vs. Central ZLD Systems, what would emerge as a
preferred and reliable way forward, why and what steps need to be taken to enable it.
Key Takeaways:
It was also highlighted that there is a need to financially incentivize uptake of more sustainable
techniques like waiving away of the cess for units using partially or untreated wastewater for the
amount of make-up water being consumed in excess of the benchmark. Moreover, a stick and carrot
approach needs to be introduced as per the benchmarks to ensure better compliance.
Comparison between common treatment facilities and individual ZLD facilities was made based on
the criteria of accountability, effluent characteristics, financial aspects and longevity. It was
concluded that due to greater accountability and much more stable and better monitored effluent
characteristics in case of individual facilities, the concept of individual ZLD makes more sense as this
also increases the longevity of the system. In terms of the expenditure involved, though the burden
on the units is reduced in case of a common treatment facility but it is achievable in both the
scenarios. Moreover, setting up the two-way pipelines to send the effluent to the common facility
and taking back the recycled water in itself is a huge hassle and hence individual ZLD is a preferred
option.
The workshop hence took stock on ZLD implementation and addressed the major challenges and
risks associated thus building capacity as a step towards a more water efficient textile industry.
47
Chapter 7 Conclusions and Recommendations
7.1. Conclusion
As outlined in the first chapter, this report aims to look at the physical and regulatory water risks as
well as the water governance landscape pertaining to the textile industry in India, with a special focus
on the Faridabad-Ballabgarh cluster in the state Haryana. Based on the desk research as well as
interviews to the stakeholders, the report finds that:
1) To a large extent, the key physical water risks related to the textile industry at the national level
are similar to those at the state level and even at the industrial cluster level. The main physical
water risks are:
a. Increasing gap between the supply and demand of freshwater that are required to
underpin the growth and ambition of the textile industry.
b. Declining groundwater table due to overexploitation of the resources.
c. Degrading water quality both for surface water and groundwater.
d. Suboptimal performance of existing individual ETPs or CETPs.
There is a vicious circle between declining groundwater table, degrading water quality due to
increased salinity or pollution, higher costs of water use in the textile production due to either
declining water table or degrading water quality, and sub-optimal effluent treatment by the
industry. It is clear that appropriate intervention is needed to address each of the key water risks
and break the vicious circle.
2) The government, both at the national and state level, has had in place a water governance
landscape with a broad coverage regarding the types of key actors and their responsibilities,
existing laws and regulations, as well as progressive initiatives at the national and state level.
The institutions involved in the governance of water for textile industry entail beyond the typical
line ministries in charge of water resources, but also the Ministry of Textile and the Ministry of
Law and Justice. The initiatives target not only the monitoring of the situations of the water
resources (both quantity and quality) and stringent effluent standards, but also on upgrading
technologies for cleaner production, including efficient water use and effluent treatment at
textile unit as well as at industrial parks.
3) Lack of good water governance contribute to regulatory water risks in the form of:
a. The gap between industry readiness in practice and the expected performance of the
industry as required by the regulations, especially but not limited to the small scale industry.
b. Some regulations have not been able to keep up with the fast pace of degrading quantity and
quality of water resources, which require timely adjustment of the regulations so as to
provide incentives for improved water management by the industry. For example, water
price for water abstraction by the industry that does not substantially change over time
despite increasing water scarcity; and CETP that allows effluent with high TDS, which
ultimately contribute to the suboptimal performance of CETP.
48
the regulations and initiatives. This will add not only higher costs to the industry and also
demotivate the industry in adopting cleaner technologies for better water management in
their production processes.
4) The ZLD policy as the most ambitious initiative that the Government of India has launched in
terms of sustainable water management has been seen both as opportunities and risks by the
stakeholders, especially the affected industry, under the implementation challenges regarding
financing, technology and space availability.
7.2. Recommendations
Based on the findings of the report and the inputs from the capacity building workshop, the report
suggests the following priority areas for capacity building in view of improving industry’s readiness
toward the ZLD policy:
10) Assessment of appropriate financial instruments and mechanisms to catalyse faster adoption of cleaner
technology for the industry, especially for the small scale industry considering its importance in generating
employment.
11) Development of guidelines for selecting cost-efficient and appropriate technology for the industry with
regard to the scale, characteristics, and production line of the textile units. The guidelines can facilitate a
rapid development of customised or mixed solutions for textile units. The assessment shall employ Cost
Benefit Analysis of potential solutions, including the construction of new ETPs or CETPs or improvement of
existing ETPs/CETPs that are suitable to local conditions and current water risk challenges, especially in the
view of limited space availability.
12) Improving the skills in operating cleaner production processes and effluent treatment plants, through
capacity building activities across the industry. STWI Projects has undertaken such workshops but this
needs to be replicated on a wider scale across the industry.
13) Improving communication and harmonisation of regulations across government agencies in order to
expedite: a) learning of best practices from other states (e.g. Tirupur) or countries; b) enhance the efficacy
of regulations.
14) Enhancing good water governance through better transparency and accountability of decision making
processes as well as the implementation of various initiatives related to the ZLD policy.
15) Financially incentivize uptake of wastewater as make-up water.
16) Need to create standards for water consumption.
17) Test technologies on pilot basis and create a standard user manual to ensure usage of clean and
efficient technologies.
18) Individual ZLD facilities are more preferable than common facilities.
49
Annex A: Workshop Notes
50
Testimonials
51
Pictures
52
53
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