India’s Water and Sanitation 3.0: A Blueprint for Sustainable Development

Commentary by Bhawna Prakash

Published April 25, 2024

This summer, 969 million Indians will vote for their national government. From increasing access to portable water to widescale implementation of hygiene promotion programs, Prime Minister Modi's government has made commendable efforts since 2014. However, the new government will face the challenge of establishing robust water and sanitation delivery mechanisms amid escalating climate crises and water shortages. These systems must ensure universal, equitable, affordable, sustainable, and safely managed services, as envisioned under the United Nations' Sustainable Development Goal 6. To address this challenge, the government should implement a revamped water, sanitation, and hygiene (WASH) program focusing on three strategic priorities: performance enhancement and system reforms, a thriving WASH market for the private sector, and integrated planning and management.

The Journey So Far

In the last decade, India made strategic WASH investments through national missions. The first iteration, "WASH 1.0" (2014-19), prioritized basic sanitation to address the dignity of millions and launched the Swachh Bharat Mission (SBM) across urban and rural areas. Notably, SBM Rural built over 100 million household toilets and 230,000 community and public toilets between 2014 and 2019.

"WASH 2.0" (2019-24) introduced water as a strategic focus. The budget for SBM Urban increased from $7.6 billion for 2014-19 to $17.3 billion for 2021-26. The Jal Jeevan Mission achieved significant progress in portable water access. Additionally, the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) focused on basic urban infrastructure, including WASH for cities with populations exceeding 100,000.

India requires further enhancements in solid waste processing. Embracing circularity across value chains and wastewater treatment are necessary. Additionally, as India elects the new government, the focus must be on WASH systems and markets.

The Road Ahead: WASH 3.0

The incoming government should double down on its efforts, broaden their scope, and execute three strategic imperatives as part of a "WASH 3.0" program:

1. Prioritize performance enhancement and system reforms. Most water, wastewater, and waste services are provided by government bodies. Inadequate data and reporting limits their assessment. These agencies should be required to regularly publish detailed operational, financial, and management data. The sustainability of these services hinges on their ability to recover costs, whether partially or in full, and to demonstrate operational excellence. Accountability for financial performance is crucial.

   The government must prioritize service charge recovery to prevent waste of valuable resources. Pricing decisions tend to be influenced by political economy. While ensuring equitable WASH for all, the government can selectively implement recovery mechanisms in progressive cities, balancing value recognition with public goods. Addressing the issue of "non-revenue water"-water that remains unbilled-would significantly enhance the sector's financial health.

   Responsible governance, accountability, and transparency are vital in the sector, further necessitating an evaluation of an economic regulator for WASH.

2. Create a thriving WASH market for the private sector. Water and sanitation are not only public responsibilities but also economic opportunities. By fostering a vibrant WASH market, India can unlock innovation, efficiency, and accountability. While public funds have driven water and sanitation initiatives, limited private sector involvement exists through corporate social responsibility and some public-private partnerships. The government should strengthen private sector participation by leveraging the recent surge of start-ups in the sector and companies committed to environmental, social, and governance (ESG) investments. Energy, transport, consumer goods, cement, construction, infrastructure, and technology companies can play a critical role by emphasizing resource efficiency, developing a circular economy, and optimizing supply chains.

   WASH 3.0 should adopt a market-based approach, incentivizing micro, small, and medium enterprises (MSMEs) and community-based initiatives. Forming innovative financing partnerships with development financial institutions (DFIs) and philanthropic organizations, in addition to leveraging civic and IT innovations, will be crucial. The government should primarily play an enabling role, setting policy and enforcing it.

   The future of the sector hangs in the balance. Is India ready for privatization of WASH utilities and services? As the government evaluates this question, it must confront the challenges of delayed payments, regulatory approvals, contractual risks, working capital gaps, inadequacy of trained resources, and safety concerns.

3. Integrate planning and management. A unified approach is needed to break silos to forge a resilient and interconnected system of water, sanitation, wastewater, and waste. The water shortages in Bangalore and Chennai are glaring examples of WASH emergencies exacerbated by climate change and the inefficacy of erstwhile water management approaches.

   Integrated water planning often gets lost amid the complexity of multiple government schemes, departments, and silos. To address this, the government should envision an integrated water-security management platform for cities and states to bridge gaps between agencies, fostering collaboration and improving planning. Through this new platform, states should prioritize water security, ensuring safe water and sanitation services across regions while breaking down operational barriers.

   A digitized view encompassing water sources, deployment, usage, infrastructure, costs, and charges is urgently needed. For instance, in water-scarce Rajasthan, responsibilities are divided: the Public Health and Engineering Department handles infrastructure, the Water Resource Department oversees canals and dams, and the Panchayati Raj Department manages rural sanitation and wastewater. An integrated approach to optimize planning and ensure safe water supply for newly constructed taps is essential.

   For WASH 3.0, the challenges lie in effective resource management. While water remains a public good that is critical for India's growth, performance enhancement and private sector participation can alleviate sectoral pressures. To achieve India's $5 trillion economy vision, valuing water-both fresh and wastewater-is paramount. Initiating progressive discussions on planning, resourcing, and management is imperative for a sustainable future.

Bhawna Prakash is a non-resident fellow with the Chair in U.S.-India Policy Studies at the Center for Strategic and International Studies in Washington, DC.

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