India eyes up water sector in ‘monetization’ drive

8/26/2021 - India eyes up water sector in ‘monetization’ drive

The Indian central government has named water and sewerage networks among key state infrastructure segments being considered for a program of brownfield asset leases aimed at raising INR6 trillion ($81 billion).

The government’s National Monetization Pipeline (NMP) envisages the transfer of operating rights for selected infrastructure assets to the private sector across multiple sectors, including water and sewerage networks. It has not yet been confirmed whether water treatment assets will be included in the plan, which is designed to raise money for new infrastructure development.

The NMP will see licenses issued over pre-defined periods, enabling the private sector to collect revenue from assets in exchange for an up-front payment, a share of the revenue, and a commitment to investing in an upgrade of the assets concerned. Primary ownership of the assets will remain with the original state body.

The NMP is expected to be gradually implemented over the 2022-2025 period.