Policy and governance roadblocks are the biggest challenges to treated water reuse

India stands at a critical juncture in wastewater management, with treated wastewater reuse emerging as a key solution to water scarcity. A recent report by Delhi-based think tank Centre for Science and Environment (CSE) and the National Mission for Clean Ganga, Waste to Worth: Managing India’s Urban Water Crisis through Wastewater Reuse, highlighted its potential while noting disparities among states. 

Haryana, with its dedicated Water Resources Authority, has made significant progress, whereas Uttar Pradesh lags due to the absence of a comprehensive reuse policy. However, nationwide adoption faces hurdles such as policy gaps, weak institutional coordination and financial constraints, which must be addressed to unlock wastewater reuse’s full potential.

Policy evolution: From infrastructure to circular economy

India’s wastewater management initially focused on sewage infrastructure and treatment plants, with little emphasis on the reuse of treated water. Over time, policies have shifted towards a circular economy approach, integrating wastewater reuse into urban water systems.

The Water (Prevention and Control of Pollution) Act, 1974 addresses wastewater treatment but does not actively promote reuse, leaving a gap in transforming treated wastewater into a valuable resource.

The National Environment Policy, 2006 promotes public-private partnerships (PPPs) for wastewater treatment and reuse. A notable success is the initiative by Maharashtra State Power Generation Company and Nagpur Municipal Corporation, where treated wastewater is supplied to power plants. Despite such successes, PPPs for reuse remain sporadic and largely confined to select sectors like power, highlighting the need for more consistent adoption across industries and cities.

The National Water Policy, 2012 primarily focused on pollution control, whereas the Draft 2020 National Water Policy explicitly integrates wastewater reuse into urban water management. It advocates for cities to recycle at least 20 per cent of their water demand from treated wastewater sources. However, without binding regulations or incentives for compliance, most cities struggle to meet these targets due to financial and technical constraints.

The 2016 Thermal Power Plant Policy was a major step, mandating that thermal power plants located within 50 kilometres of a sewage treatment plant (STP) use treated wastewater. However, compliance has remained low due to weak enforcement mechanisms.

Recognising the urgent need for treated water reuse, Namami Gange Programme introduced the Safe Reuse of Treated Wastewater Framework in 2022. The framework aims for 50 per cent reuse of treated wastewater by 2025 and 100 per cent by 2050, positioning water reuse as a key element of India’s water security. However, there still exists scope of development in legal enforcement mechanisms and mandated state specific action plans.

Under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0, cities with over 100,000 people must recycle at least 20 per cent of their wastewater. However, as per CSE’s analysis, most ULBs lack the technical and financial capacity to integrate reuse into city water supply planning. Similarly, Swachh Bharat Mission (SBM) 2.0 emphasises wastewater containment and treatment but does not explicitly outline mandatory reuse strategies. This results in a fragmented approach, where cities focus on treatment but not on the end use of treated wastewater.

One of the critical gaps in wastewater reuse is the absence of clear, sector-specific standards for wastewater quality. For example, there are no unified benchmarks for treated water use in agriculture, industry, or urban landscaping, leaving industries and urban local bodies (ULB) without clear guidelines on how to safely and effectively repurpose treated water.

A state-level analysis of policies reveals that only 11 out of 28 states have established wastewater reuse policies. While a few states have developed robust frameworks, the majority lack well-defined action plans, funding strategies and monitoring mechanisms to effectively implement wastewater reuse initiatives.

The table below outlines the status of wastewater reuse policies across states.

Gaps in institutional framework

India’s institutional framework for wastewater reuse is fragmented, with responsibilities divided across multiple national, state and local agencies. This leads to weak coordination, poor enforcement and limited financial incentives. 

While the Union Ministry of Housing and Urban Affairs oversees urban sanitation programmes like AMRUT 2.0 and SBM 2.0, there is no dedicated agency ensuring wastewater reuse compliance. The Central Pollution Control Board and State Pollution Control Boards (SPCB) regulate effluent treatment but lack sector-specific reuse mandates. 

At the state level, ULBs operate STPs, but their primary focus remains sewage disposal rather than reuse. Without a central coordinating authority, clear sectoral priorities, or enforceable financial incentives, most wastewater reuse policies remain advisory rather than mandatory, limiting large-scale adoption.

Policy challenges

Wastewater reuse policies in India face significant gaps in both adoption and implementation. Only 11 out of 28 states have policies, most lacking structured roadmaps, enforcement mechanisms and compliance frameworks. The absence of a central authority has led to inconsistent adoption across states. 

Financial constraints further hinder progress, especially for ULBs in smaller cities, where limited incentives and the lack of a uniform pricing model discourage reuse. Additionally, the absence of sector-specific standards and public hesitation— driven by health and environmental concerns—continues to restrict large-scale adoption.

How to strengthen institutional and policy management

Enhancing wastewater reuse in India requires coordinated action at both state and national levels. Establishing state-level wastewater reuse cells would improve coordination among ULBs, SPCBs and irrigation departments. Integrating reuse into urban planning could mandate the use of treated wastewater in new developments, promoting sustainability. 

Financial incentives, such as lower pricing for treated wastewater, could encourage industrial adoption, while independent third-party monitoring would ensure compliance with quality standards. Developing national sector-specific reuse standards and mandating state-level implementation roadmaps with funding strategies and time-bound targets would help bridge the gap between policy and practice.