‘With $1.5 bn already invested, another $3 bn needed to make Ganga clean’

‘Govt. schemes in water infra alone has investment potential of $270 bn’

The government has already spent $1.5 billion so far to complete 28% of the 150 sewage treatment plants (STPs) under the “Namami Gange” project to clean River Ganges and needs another $3 billion to complete the project, according to Bank of America Merrill Lynch.

“Around one-third of the work on STPs in the Namami Gange project has been completed in the last three years. It could further see execution step-up with additional capex of $3 billion in the next 5 years,” said Amish Shah, co-head of research — India at Bank of America Merrill Lynch.

Overall, government scheme in water infrastructure alone has investment potential worth $270 billion in the next 5-15 years, according to estimates by the brokerage house.

The controversial river-linking project alone will account for $168 billion in investments over the next 15 years, while the ambitious plan to supply piped water to every home will entail another $94 billion.

The report comes when increasing policy thrust on water got amplified amidst the ongoing crisis plaguing Chennai and other drought-prone areas elsewhere in the country.

“It is very difficult for the government to find all the resources needed to be invested in such projects and it is important for revenue models to evolve to ensure private sector participation,” said Mr. Shah, adding that investments in water-related infrastructure have grown at a compounded annual growth rate (CAGR) of 15% to tocuch $21 billion last fiscal.

Entire investment of $21 billion was put in by the States alone as water is a State subject but the Centre had pitched in with some investments of its own, especially in the ‘Namami Gange’ project.