Water. Desalination + reuse
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Q & A Rajiv Mittal, managing director and group chief executive, VA Wabag "Desalination is, and will continue to be, our growth driver." Wabag is a pure-play water technology multi- national with desalination references globally. These include a 192,000 m3/d seawater reverse osmosis (SWRO) plant in Al Ghubra, Oman, and in Chennai, India, an SWRO facility of 110,000 m/d. We span industrial and municipal and membrane and thermal. We've installed more than 700,000 m3/d of desalination capacity in the past 10 years. Desalination is, and will continue to be, our growth driver. We focus on mid- to large-size projects with a minimum capacity of around 30,000 m3/d. In this context, and given our track record over the past three years, desalination contributes 10 to 15 per cent of our business. We expect this chunk to increase in the future, particularly given the opportunities we foresee in India. Given the rising demand for water security, in mu- nicipal and industrial markets, we expect around 150,000 m3/d to be contracted, on an average, per year, with a compound annual growth rate (CAGR) of seven to eight per cent. Additionally, mega-desalination projects, such as 400,000 m3/d SWRO in Chennai, are in the pipe- line. This provides a capital expenditure visibility of around INR 10,000 crores ($1.4 billion) over next fi ve years. Project requirements are dynamic across ge- ographies and segments. The west of India has places with water availability mixed with saline water ingression turning it brackish, whereas in the south water is scarce. The canvas ranges from 20,000 m3/d to 400,000 m3/d. Industrial desali- nation projects are self-sponsored. In municipal, multilateral agencies such as Japan International Cooperation Agency and KfW Development Bank are active. For the future, public-private partner- ship (PPP) projects are in development which may rationalise the value of water. India's need for an alternative, reliable, feasible and sustainable sources is immediate. The demand refl ects growing populations in urban areas and changes to rainfall patterns owing to climate variation. Most cities, especially on the coast, experience a water shortage of about 30 per cent on daily demand. Per capita availability of water is expected to have dropped 39 per cent by 2050, to 1,140 m3/d - down from 1,860 m3/y in 2001. India is on track to become an economic superpower, propelled by policies to promote a number of industries across the country. Water security is key to sustaining pro- ductivity. A number of leading industry majors have opted for desalination. One more factor that adds thrust to the growth of desalination is the focus on renewa- bles by the government of India. Power, being the most cost-intensive component in desalina- tion, is the subject of much discussion about how to optimise the lifecycle cost of a project. Renewables such as solar or wind, coupled with desalination projects, are being planned: A num- ber of pilots have already begun in south India. Desalination is viewed as an expensive alternative, even though lack of water results in an estimated loss of six per cent to gross domestic product (GDP). The turnaround time is long from concep- tualisation to contract. Delays occur for many rea- sons. Non-availability of funds at local municipali- ties. Water is considered a right and free-of-cost commodity, thus leading to its exploitation. This mindset is a challenge for municipalities that want to rationalise tariff s. Secondly, identifying suitable sites, modalities around land acquisition, envi- ronmental clearances and funding tie-ups with multilateral agencies bring time overruns. However, we expect that desalination, along with water reuse, will gain traction as an alterna- tive source. The pick up will be helped by the na- tional desalination policy that's in the process of being formulated, as well as the success observed at the Chennai desalination plant and the PPP projects is development. We heartily welcome this proactive initiative by the government. The National Mission on Desalination (NMD)'s objective is use desalinated water as a sustainable solution for water supply in the coastal states across India. We, as a reliable and responsible partner to government and mu- nicipalities, are buoyed by this vision for a more water-positive India. The latest update has been a call for enrolment by desalination technology providers. Leading players have provided their inputs. Now a compendium is being prepared for use by central, state and local government organisa- tions regarding selection and use of technolo- gies for ocean and brackish water desalination, including for agriculture. A part of the NMD will be to develop a robust framework to help expe- dite desalination projects. What proportion of your business is from desalination projects in India? What is your expectation for growth in desalination in India during the next fi ve years? What is the most common type of project in India? What are the biggest drivers of growth in desalination in India? What are the biggest obstacles to desalination projects in India? How could these be overcome? What is your view of the government's National Mission on Desalination? Rajiv Mittal, managing director and group chief executive, VA Wabag "Desalination is, and will continue to be, March 2019 Water. desalination + reuse In Site 23