Back to Resources
Published: 10.05.2023

NITI Aayog’s Wastewater Trading Proposal Incorporates 2030 WRG’s WRC Concept

In a significant development toward water efficiency and security, NITI Aayog, the policy think-tank of the Indian government, recently proposed a wastewater trading mechanism. Notably, the proposal makes explicit reference to the Wastewater Reuse Certificates (WRCs) framework, originally conceptualized by the 2030 Water Resources Group (2030 WRG). The acknowledgement underlines the potential for collaborative efforts in addressing India’s water challenges.

Acknowledging the complexities and socio-economic factors involved, the NITI Aayog’s proposal focuses on wastewater trading primarily among industrial users as a pilot initiative. Additionally, rather than penalizing farmers for excessive water usage, the plan aims to encourage and incentivize efficient water use among agricultural water users.

The WRC concept by 2030 WRG is a market-based mechanism designed to encourage the reuse of treated wastewater. This novel framework aligns with NITI Aayog’s vision for a more efficient water future for India and has piqued the interest of stakeholders across governmental and private sectors.

NITI Aayog’s proposal marks a paradigm shift in India’s water resource management strategies. It leans toward a market-oriented system, as opposed to the traditional state-centered approach. This encourages a more demand-responsive methodology, greater community participation, and a heightened role for the private sector. The proposal also envisions the establishment of Independent Regulatory Authorities (IRAs) with statutory powers to regulate water allocation and pricing, reflecting the broad scope of reforms considered.

As conversations among stakeholders continue to evolve, both NITI Aayog and 2030 WRG remain engaged in dialogues and collaborative efforts to advance water security. The proposal serves as a steppingstone for future multi-stakeholder partnerships that aim to address the pressing challenges of water security in a changing climate.

See more on this news (paywall) >>