Nagpur Municipal Corporation (NMC) and Maharashtra Power Generation Company (MahaGenCo) has partnered up to construct a wastewater treatment plant, funded also by the central and state governments, to promote reuse of wastewater in thermal power plants and reduce pressure on freshwater being diverted for electricity generation.

This project has resulted in a major transformation to improved water quality, with nearly 90% of wastewater being treated, and households having greater access to freshwater for drinking and irrigation. This case study also demonstrates the importance of institutional coordination, presence of national programs and relevant policy, and public-private partnerships.

Due to increasing demand for power, Maharashtra State Power Generation Company (MahaGenCo) had to increase the capacity accross its three of five power plants to 1,980 MW. However, the existing freshwater allocation from the thermal power plants at Koradi of 75 million cubic metres (MCM) per year for cooling and washing was found to be insufficient for the new expansions, and there was no additional freshwater available. Meanwhile, freshwater is also needed for drinking and agricultural purposes.

With the help of USAID, MahaGenCo initiated a study (2005-2007) to assess the demand and feasibility of alternative water sources. The study evaluated the use of high-quality tertiary treated water from the wastewater treatment plant of Nagpur Municipal Corporation (NMC).

Then in 2008, MahaGenCo signed a Memorandum of Understanding (MoU) with NMC to assist in building a new sewage treatment plant of 130 million liters per day (MLD) capacity at Bhandewadi, a tertiary treatment plant, and the transmission network, all at a cost of INR 1.95 billion (around €24 million). As a royalty for the water, MahaGenCo agreed to pay INR 150 million per year (around €1.8 million) to NMC. The partnership takes the form of a build-operate-transfer (BOT) model with a 30- year concession period.

The project received two grants; one from the Government of India, covering 50% of project cost, and another one from the State Government of Maharashtra, covering 20% of project cost. Meanwhile, MahaGenCo contributed 30% of project cost, and NMC contributed 15 acres of land for the project and sewage/wastewater. The project came into operation in 2018.

The project helps to recover potable water which would have been used by thermal power plants and instead uses it to meet the city’s drinking water and irrigation demand. It is estimated that the additional potable water will cater to at least 1.5 million people in the city, thereby providing environmental, health and social benefits. The project also contributed to the formulation of the Maharashtra state policy on wastewater reuse.

The overall concept of treating wastewater for thermal power plants clearly promotes the concept of ‘Nexus’, as it enhances resource use efficiency while addressing externalities across sectors.

In the near future, Nagpur Municipal Corporation also aims to treat 100% of sewage water. With an increase in the number of Sewage Treatment Plants (STPs) in the city, the three major rivers can be expected to be cleaner than before.

Photo by Evangelos Mpikakis on Unsplash