Water Use Efficiency in the Industrial Sector Rita Roy Choudhury Senior Director Head – Environment, Climate Change, Renewable Energy & Water Division, FICCI Head – India Sanitation Coalition Secretariat, India Water Week April 8, 2016

Key Drivers for Water Use Efficiency in Industries Business risks Poor Availability or Non-Availability of Fresh Water Higher Specific Water Consumption Increasing Cost of Pumping & treatment High Effluent Discharge Restriction on effluent disposal to any Recipient Media Leakages & Spillages Corporate Image Many sectors are continuously minimizing their water footprint thus setting standards for SPECIFIC WATER CONSUMPTION in their units.

Initiatives by industry to improve water use efficiency: Case Studies

Cement Sector

Dalmia Cement (Bharat) Limited Year Water use in industrial process only (in m3) Water use in utilities and other services (in m3) Actual production of the plant (tonnes) Specific water consumption (m3 per unit of production) 2011-12 160735 24886 1236127 0.13 m3/T 2012-13 153268 21114 1225223 0.11 m3/T 2013-14 133139 13662 1473825 0.10 m3/T Birla Cements Works Year Water use in industrial process only (in m3) Water use in utilities and other services (in m3) Actual production of the plant (tonnes) Specific water consumption (m3 per unit of production) 2011-12 262990 117111 2223313 0.16 m3/T 2012-13 335688 166813 2548165 0.18 m3/T 2013-14 366429 127083 3180978 0.14 m3/T

Measures taken in the cement sector Process optimization for water saving Utilization of STP discharge Stepwell for artificial discharge Water-cooled condensers replaced with air-cooled condensers Roof water harvesting Awareness generation and capacity building: Developing awareness among employees Adopting best practices Micro-level monitoring Appreciation & reward scheme Cross functional focus team on water improvement

Oil & Gas Sector

Indian Oil Corporation Limited Year Water use in industrial process only (in m3) Water use in utilities and other services (in m3) Actual production of the plant Specific water consumption (m3 per unit of production)- Fresh Water 2011-12 15151662 15655787 MT 1.01 m3/MT 2012-13 14218621 13857873 MT 1.23 m3/MT 2013-14 14725612 14045326 MT 1.22 m3/MT Oil & Natural Gas Corporation Limited Year Water use in industrial process only (in m3) Water use in utilities and other services (in m3) Actual production of the plant (tonnes) Specific water consumption (m3 per unit of production) 2011-12 196843 141149 2.50 (MMToE) 0.37620 2012-13 238715 136702 2.46 (MMToE) 0.37154 2013-14 175536 141313 2.51 (MMToE) 0.35411

Measures taken by the oil & gas sector 100% reuse of treated effluent of ETP-1 & ETP-2 Re-use of UF backwash and RO feed Re-use of stripped sour water in coke-cutting and as wash water Rain water harvesting in refinery and township areas Awareness generation and capacity building

Chemicals Sector

Water Use Efficiency in Chemicals Sector Lanxess India Pvt Ltd. Tata Chemicals Ltd. , Year Production capacity (MT) Specific water consumption (m3/MT consumption) 2010-11 2899 47.97 2011-12 9352 33.71 2012-13 16660 21.41 Year Production capacity (million MT) Specific water consumption (m3/MT consumption) 2010-11 1.85 0.92 2011-12 2.09 0.76 2012-13 2.36 0.39

Water Use Efficiency in Chemicals Sector At TCL’s Mithapur plant, Gujarat more than 97% requirement is met through sea water and water generated through vacuum evaporation, thermal distillation, etc. Across the sector measures undertaken range from: groundwater remediation, rain water harvesting, reuse of polymer effluent, etc.

Beverages Sector

PepsiCo India Holdings Year Water use in industrial process only (in m3) Water use in utilities and other services (in m3) Actual production of the plant (cases) Specific water consumption (m3 per ‘000 cases) 2011-12 92370 14607 8948660 13.4 2012-13 77583 12238 7823147 12.9 2013-14 79871 13310 8490901 12.2 Water conservation Rain water harvesting- both surface and roof water 100% backwash water recovery Recovery system for seal cooling water, vacuum pump water and rinse water

Challenges: Industrial Sector Water Demand Increasing water demands due to population pressure and Urban Sprawl Industrial growth Increasing Irrigation and Agriculture demands Over exploitation of water resources Capacity Building and Skills Water quality for various applications and availability Political and Regulatory disputes Effective recycling and reuse by industry and need for cost effective technology

Water Requirement Projections (Mm3/year) Category of industry Water requirement (2010) (Actual) Projected water requirement (2025) (change in % over 2010) Water requirement (2050) Iron & Steel 5837.70 6013.00 (3%) 12035.00 (106%) Smelters 24.14 32.31 (34%) 44.35 (84%) Textiles & Jute 19019.00 36701.00 (93%) 46924.00 (147%) Leather Products 65.74 93.08 (42%) 147.83 (125%) Inorganic Chemicals 1600.00 3346.00 (109%) 615.00 (-62%) Pharmaceuticals 209.25 276.20 (32%) 429.15 (105%) Distillery 66.31 318.00 (380%) 5203.90 (7747%) Paper & Pulp 207.00 10240.00 (4847%) 19490.00 (9315%) Source: Twelfth Plan Working Group on Water

FICCI Water Mission Launched in 2011 Chaired by Naina Lal Kidwai, Past President, FICCI & Former Chairperson, HSBC India Members from industry, private sector water companies and service providers, multilateral and bilateral agencies, and experts The Mission has three Task Forces: Water Efficiency Private Sector Participation in Water Water Stewardship

Initiatives of FICCI Water Mission Policy recommendations to the government Stakeholder dialogues and consultations Annual FICCI Water Awards – 3 editions held (recognizes excellence in water conservation and management among industry, communities, and NGOs) FICCI-HSBC Knowledge Series on Sector specific case studies of water use efficiency Thermal Power Plants Agriculture Chemicals & Petrochemicals FICCI Water Conclave – an annual platform for policy dialogue and sharing of best practices Capacity building programmes for specific sectors Case Studies of water efficiency, conservation and management from industry, community-led or community-focused initiatives, and NGO engagement Reports/White Papers on topical themes (latest to be launched is the FICCI-2030 Water Resources Group White Paper on Urban Wastewater PPPs, released at India Water Week on April 6, 2016) Bilateral business dialogue on water conservation and management with visiting country delegations FICCI has a Resource Conservation and Management Division that carries out industry specific water audits and training programmes on water management

Suggested Policy Interventions Groundwater management: Revision of Model Ground Water Act of 2005 to address the fundamental problem of limiting groundwater extraction Groundwater management has to be implemented through a mix of regulatory interventions and economic tools. Implementation of the interventions has to be done by a high level of user participation. Incentives and penalty: Methods to incentivize conservation and penalize wastage have to be developed Incentives can be provided to communities, utilities, states, and industry associations adopting water harvesting and conservation measures. Incentives can be in form of priority and speedy implementation of development works and schemes, relief in taxes, etc. Enhancing investments in Water sector: Prioritize available public investment towards the construction and maintenance of water infrastructure and facilities. Measures have to be taken to encourage private investments from interested groups to improve inefficiencies in water supply, distribution and cost recovery.

E: watermission@ficci.com; rita.roychoudhury@ficci.com THANK YOU E: watermission@ficci.com; rita.roychoudhury@ficci.com