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"Water, water, everywhere, And all the boards did shrink; Water, water, everywhere, nor any drop to drink" - As i sit down to write this article, this part of some old poem that i have read somewhere comes to my mind. In fact, the lines reflect the crisis in which a part of the world is already in and many more being added at a faster pace. Let's not talk about the crisis in Africa or some other Asian countries. Let's speak about our very own country.
Providing utilizable water for domestic and industrial applications has become a major issue to India as the demand is rapidly rising due to various factors like population and economic growth and increasing urbanization. World Economic Forum has indeed classified Water management as one of the top problems that could impact India's growth story.
Drinking water scarcity is very high in coastal regions when compared to the interior part of the country, since the groundwater tends to be saline making it not suitable for drinking. However, it is good that the problem itself has a solution in it. Since these are coastal areas, desalination of sea water becomes an ideal solution to bridge the gap between the growing needs and the scarcity in these coastal areas. Supplying water from dams or getting it from other states or transporting through tankers have proved to be a costlier option than the water supplied by desalination.
There around 20 major cities including Mumbai, Chennai, Surat and Kolkatta that lie on the coast line and the water requirement for these cities recorded around 6000 million liters per day. The projected water requirement for all coastal cities is expected to be around 23,000 million liters per day by 2025.
The major reasons to go the desalination way for these cities include
$ Desalination being economic compared with other current methods of supply
$ Depleting groundwater and surface water can be saved
$ Rate of replenishment is very high in desalination compared to other methods
$ Population explosion and rapid urbanization
$ Very high scalability
Considering that around 20% of the water requirements by these coastal cities are met by desalination, it would require an investment of around 400 billion USD. The capacity installed will need to be around 5000 MLD to meet this 20% demand. Clearly the governing bodies at level will not be able to invest even a small part of this money and hence PPP seems to be the only solution.
A classic example is the Country's first large scale desalination plant at Chennai which is executed by a partnership between IVRCL - BEFASA consortium and Chennai water board. The plant currently extracts around 273 million liters of sea water, processes them through reverse osmosis and supplies 100 million liters of water to the Chennai metro. The remaining 173 MLD will be let back into the sea. The plant is close to completion.
The interest in desalination has been fast catching and there could be huge opportunities opening up. Already Gujarat has floated a tender for 150 MLD desalination plant and Chennai has floated a tender for the next desalination plant with a higher capacity. Andhra is not let behind and is probing the probabilities.
There are a host of companies which have already executed and there are others which have the capabilities to execute or be a part of these projects. The opportunity is huge and when the idea gets momentum, you will see some of these companies getting some big ticket orders. The companies could be one of the Pump suppliers, Construction companies, Equipment suppliers, Design engineering services companies and Technology suppliers.
- Team HBJ Capital
Providing utilizable water for domestic and industrial applications has become a major issue to India as the demand is rapidly rising due to various factors like population and economic growth and increasing urbanization. World Economic Forum has indeed classified Water management as one of the top problems that could impact India's growth story.
Drinking water scarcity is very high in coastal regions when compared to the interior part of the country, since the groundwater tends to be saline making it not suitable for drinking. However, it is good that the problem itself has a solution in it. Since these are coastal areas, desalination of sea water becomes an ideal solution to bridge the gap between the growing needs and the scarcity in these coastal areas. Supplying water from dams or getting it from other states or transporting through tankers have proved to be a costlier option than the water supplied by desalination.
There around 20 major cities including Mumbai, Chennai, Surat and Kolkatta that lie on the coast line and the water requirement for these cities recorded around 6000 million liters per day. The projected water requirement for all coastal cities is expected to be around 23,000 million liters per day by 2025.
The major reasons to go the desalination way for these cities include
$ Desalination being economic compared with other current methods of supply
$ Depleting groundwater and surface water can be saved
$ Rate of replenishment is very high in desalination compared to other methods
$ Population explosion and rapid urbanization
$ Very high scalability
Considering that around 20% of the water requirements by these coastal cities are met by desalination, it would require an investment of around 400 billion USD. The capacity installed will need to be around 5000 MLD to meet this 20% demand. Clearly the governing bodies at level will not be able to invest even a small part of this money and hence PPP seems to be the only solution.
A classic example is the Country's first large scale desalination plant at Chennai which is executed by a partnership between IVRCL - BEFASA consortium and Chennai water board. The plant currently extracts around 273 million liters of sea water, processes them through reverse osmosis and supplies 100 million liters of water to the Chennai metro. The remaining 173 MLD will be let back into the sea. The plant is close to completion.
The interest in desalination has been fast catching and there could be huge opportunities opening up. Already Gujarat has floated a tender for 150 MLD desalination plant and Chennai has floated a tender for the next desalination plant with a higher capacity. Andhra is not let behind and is probing the probabilities.
There are a host of companies which have already executed and there are others which have the capabilities to execute or be a part of these projects. The opportunity is huge and when the idea gets momentum, you will see some of these companies getting some big ticket orders. The companies could be one of the Pump suppliers, Construction companies, Equipment suppliers, Design engineering services companies and Technology suppliers.
- Team HBJ Capital
