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INNOVATIONS IN WATER
Driving Water Markets
18 November 2010
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1 Water-The Blue Gold
2 Water Scenario India
3 Market Development Innovative Ways to drive the Market
4 Finance
5 Way Forward
CONTENTS
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Water - The Blue Gold
Philips India launchedIntelligent Water Purifier in
2007
WiproWipro Ltd, whichlaunched its venturein the water businessin 2008Wipro Water, adivision of the ITmajor Wipro, isfocusing onexecuting big watertreatment projects, tothe tune of Rs100Crore
Tata forayed into waterbusiness in Dec 2009launching water purifierTata Swach
L& T forayed intoWater transmission & distribution systems.Water treatment plants &Industrial effluent treatment plants.Waste water treatment and disposal.
Gammon
Executed first water projectin 2001
IVRCL Infra & ProjectsExecuted first water project ~1992Water & Environmental projects contribute to 50% share
in revenue ~2006 ~ INR 450 Crs
Aquaguard continues to be the leader indrinking water category, where the penetration
of water purifiers is a mere 2.5 %.
Hindustan Unileverlaunched Pureit in 2005
Warren BuffetBought a water treatmentprovider. A clear signal thatinvesting in water is an untappedopportunity. Water, like oil, is finite.
http://www.google.co.in/imgres?imgurl=http://2.bp.blogspot.com/_M1nrFzOhiWo/TNl7I7VLq5I/AAAAAAAADyU/FWocJFQIg_w/s1600/39197167_gold.jpg&imgrefurl=http://oregonecon.blogspot.com/2010/11/gold-gold-gold.html&usg=__4i1Hq8XYywUuhIg2zKO1bzi_Ih4=&h=300&w=350&sz=26&hl=en&start=2&zoom=1&itbs=1&tbnid=IeBfH2v_LJI4kM:&tbnh=103&tbnw=120&prev=/images?q=gold&hl=en&gbv=2&tbs=isch:18/8/2019 Nutan Zar Water
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Water Scenario-India
Indian industries consumed about50 billion cubic meters of water
Large population still lacks accessto safe drinking water
WaterScarcity-Is a Crisis
loomingahead?
Fresh water available per capitaper annum in India has droppedfrom 5,200 m3 to 1,820 m3 in 01According to WHO, mortality ishigh due to water borne diseases
Text
Surface Water-PollutedGround Water-DepletedRainfall - Wasted
Industry -GrowingWater Reqd- IncreasingWater Recycle- ? ? ?
Quality of water- PoorHealth Issue-IncreasingIndias water future-???
Population IncreasingDemand IncreasingConsumption-Increasing
Establishment of UMPPs will
further strain the thin waterresources
Would the next
world war would
be over water ?
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Market Development - Innovative Ways of Driving theMarket
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Virtual Water-International Water Trading
Countries which imports products containing virtual water from other countries, would becharged extra as scarcity value to the water
Low mean rainfallLow water resourcesLow Fertile Land AvailabilityDry climate and high rate ofevaporation
Low yield of product
Virtual watercontent ofproduct inAustralia= XMm3/yr
Virtual watercontent ofproduct in
Egypt = YMm3/yr
Trade ofproduct
Global Water savings= Y-X Mm3/yr
National Watersavings (Egypt) = YMm3/yr
National Water lossAustralia = X Mm3/yr
Better water management &planningClimatic conditions more
feasibleHigher yield of productBetter productioninfrastructure
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Another Protocol like Kyoto. But this time forWater
An initiative for International Cooperation in the area of water use reduction and conservation.
Primary objective being reducing the consumption of water used
Countries will reduce their aggregate water consumption by certain % below base year
Process of buying and selling of water credits in international market.
Two mechanisms to supplement national actions
To achieve real, long term, measurable & cost effective water reductions
Water Reduction
Mechanism
International
Water Trading(IWT)
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Water Entitlements-National Trading
Process of buying &selling of water accessentitlements Waterrights.
Countries having watertrading-Western states ofthe United States, Chile,South Africa, Australia &Spain's Canary Islands.
Allows scarce waterresources to be transferredto their most productiveuses.
Water Entitlements
Water Allocations
In Australia, the activationstarted in 1980s after the capon Murray-Darling Basin inQueensland
Water trading rules fall underthe Australian Water Act
(2007)
Under the National WaterInitiative (NWI), water trade isthe transfer of water accessentitlements (permanent) andseasonal water allocations(temporary) between differententities
Use
Trade
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Demand Side Management
Water demand management implies actions that influence the quantity of water consumed by users.
DSM will lead to sustainable water systems and markets.
DSM measures should be the first considered and actively incorporated into water policies.
Developing market based mechanism for promoting implementation of DSM measures PerformAchieve & Trade (PAT) for Water.
Trading
DCs exceeding targets
shall be credited with WSCerts
DCs failing to achieve targets
shall either meet target by
buying permits or pay penalties
Goal SettingWater Intensive Consumersshall be measured for Specific Water
Consumption and target will be setfor each Designated Consumer (DCs)
Reduction
Between certain time
period, DCs shall
Reduce their water
consumption to meet
targets
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Recycled Water Certificates -Promoting Recycling
State
regulators
Industry Commercial Residential Agriculture
Recycled waterusage
obligations
Penalty on non-compliance
State agency
RecycledWater
certificates
Recycled water usage obligations (in
% of actual water consumption)can be introduced by waterregulators according to consumption( for above categories)
Certain percentage of obligation canbe obtained by purchasing
Recycled Water Certificates.
The penalty mechanism on non-compliance may be introduced.
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Innovations
Development of Water Savings Companies (WSCos) concept for undertaking waterefficiency projects
Financing of projects based on loan securitization through water credits
Before During thecontract
(less than life span)
After thecontract
Payment
toWSCO E
nd
users
savings
Wate
rBill
Project Start-upContract signed
Transfer of the equipment property
End of the contract
WterBill
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Way Forward
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Way Forward
NationalTrading
WayForward
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Increase inAgriculturalProduction
PovertyAlleviation
Increase inIndustrial
Production
Increase in Agri-based industries
Increase Per capitaIncome
Increased demand forcash crops
Increased demand forIndustrial goods
Education,
Sanitation
Food Supply,Health
EconomicGrowth
Eradicate poverty &hunger
Reduce child mortalityAchieve universal primary
education
Achieve eradication ofHIV/AIDs malaria and
other diseases
SUSTAINABILITY
The lack of clean water and sanitation slows the worlds
economic growth by $556 billion each year.
Water Core For Sustainable Economy
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THANK YOU