PPP based Water & Sewage Infrastructure Costing

By - Anoop Jha


Cost Comparison of Water Supply, WTP & STP PPP projects 
(Cost in Rs. Cr.)

PPP model water projects

Water related projects vary in scale as well as nature, which ranges from National level river water management to state level irrigation projects to city level flood management to neighborhood level water supply and distribution system. considering the widespread and vital nature of water system these projects demands huge capital and recurring investments in Operation and Maintenance (O&M). Governments revenue inflow might not be sufficient to take care of all demands of water related projects, so long term private participation has been encouraged in recent past in India for commercially viable and attractive projects mainly in form of public private partnership (PPP), mostly in urban infrastructure segments  like water supply and distribution as well as health and sanitation. larger project baskets like flood management, irrigation canals, dams, etc are primarily under control of state and central government.  

Urban Infrastructure : Investment Vs Operations and Maintenance (O&M)

Investment Vs O&M

Urban Infrastructure Cost

Per Capita Investment Cost by Sector

(Rs at 2009-10 prices)

Source:  Report on Indian  Urban Infrastructure and Services 

Per Capita Operations and Maintenance Cost (annual) by Sector

Source:  Report on Indian  Urban Infrastructure and Services 

Urban Infrastructure Investment Requirement (2012-31)

(Rs crore)

                            

Source:  Report on Indian  Urban Infrastructure and Services 

Operations and Maintenance Expenditure by Sector (2012-31)

Source:  Report on Indian  Urban Infrastructure and Services 

Pattern of per Capita investment in different urban infrastructure sectors and O&M cost are somewhat different from each other, while Urban Roads demands more capital investment , Water Supply, Sewage, SWM, Urban Road & Transport require more O&M investment. 

"Water utilities in India are typically able to recover only 30-35 per cent of the operations and maintenance (O&M) cost.Even with current levels of highly inadequate service, solid waste management accounts for 25-50 per cent of a ULB’s expenditure (World Bank 2006), but cities recover less than 50 per cent of the O&M cost, according to a study by the Ministry of Urban Development, Government of India. ULBs will be required to invest 54 per cent on capital investment and close to 25 per cent on the O&M of physical assets by 2021-22. In practice, user charges cover less than 50 per cent of the O&M cost of basic infrastructure services in India, on an average"

Source:  Report on Indian  Urban Infrastructure and Services 

Critically polluted industrial clusters in India

State -wise Polluted Clusters No. and Location

Source: pib.nic.in

State-wise prevalent Public Private Partnership (PPP) format

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