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Arun Lakhani shares his views on Urbanization and public participation at the Lokmat event

Honorable Chief Minister of Maharashtra Shri Devendraji Fadanavis, Chairman of Lokmat Group Shri Vijaybabu Darda, Guardian Minister Shri Chandrashekharji Bavankule, Honorable Mayor Shri Praveenji Datke, respected MPs, MLAs, Officers and dear friends,

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Firstly, I congratulate Lokmat Group and Shri Vijaybabu for creating this progressive, much needed and useful platform. Bringing decision makers and stakeholders together on such a platform will definitely provide a push for the development. The discussions on this platform will help create Vision 2020.

The need of such a dialogue has become all the more important in this era of rapid urbanization. In any developed country, where basic needs such as water, electricity and housing have been fulfilled, smart city seeks public participation. However, public participation is also important when the development is going on. While executing ‘24×7 water system’ we have experienced this. Communication with citizens makes execution easier.

We should understand that all projects related to city development are social projects. Whenever a new project is launched, citizens will naturally have questions about those projects. If we satisfy their queries, citizens will look at these projects with a positive view. And to have meaningful dialogues with citizens, platforms such as this are necessary.

Active people participation strengthens any project. Citizens become part of shortcomings, challenges as well as ownership of that project. In PPP projects, we present it as a 4P model. P-People/Public as Government, P-Private and P-People as citizens. This 4th P strengthens PPP structure. It is difficult to build projects of duration of 25 to 30 years without this 4th P.

Even Government, NMC and NIT should stress on communication. In the whole life cycle of a project, there should be a provision for public dialogue and feedback. It will speed up the execution of the project.

Even as Nagpur could not find a place in the first list of Smart Cities, Nagpur city is well-known across the country and globe for its progressive initiatives. Nagpur is known for the physical execution of Metro in record time as well as for Ethanol Buses. The 24×7 water system was presented with the Best Recognition by the Government of India in the presence of Honorable Prime Minister Narendra Modi. Honorable commissioner Mr. Hardikar gave a presentation to 500 Mayors. The Government of India and the Government of Maharashtra has developed the policy of using treated water in Thermal stations taking a cue from the Sewage Treatment with Reuse of Water project in Nagpur. Sewage Treatment and Reuse Project has a unique peculiarity. The income that will be generated by providing processed sewage water to thermal stations will cover the total cost of the project thus making it absolutely free for the Municipal Corporation. More importantly, 20 crore litre water reserved for electricity generation can be used for drinking purpose in the city. Considering the standard norm of 135 litre per day per person, it will fulfill the drinking water need of 15 lakh population. Water that is used by power stations will be available for lakhs of people for drinking. It will bring down the rate of water-bourne diseases which is 21 per cent at present. With big rise in urban population, this project is considered path-breaking. Many such long-term projects are thought of and there are many more things to do in Nagpur. It is necessary to discuss how these models will become efficient, accountable and sustainable. Models built on these norms will be successful.

While thinking of Vision 2020, it should have a base of this interaction. And while defining the vision, it is imperative to understand the needs, thoughts and priorities of the stakeholders. A city cannot tread the development path on the vision of another city – be it a vision of London or Singapore for that matter. Even to provide services like Singapore, vision and priorities should be of Nagpurkars. A foundation for this has been laid in today’s interaction. Once again, I thank Vijaybabu and Lokmat Group for help building this vision. Thanks!

VIL and Arun Lakhani

India has vast requirement of Infrastructure building and improvement. The PPP route was established in last decade also saw some lean time. With New government initiative the PPP has again come with better risk sharing matrix between private and public. Vishvaraj Infrastructure Limited (VIL) has been a proponent of PPP model, and has established track record in Road and highways sector.  With Urban Infrastructure foray in Water, it is today the only Indian Utility with ongoing projects in Water distribution as well as Waste water treatment and Reuse. With Water scarcity hitting the country in a big way, with sustainability point of view, VIL’s example of Total Integrated water management at Nagpur is being followed by the whole nation. Treating Sewage as Water Source and reuse for commercial/industrial purpose is key to releasing fresh water used by Industry for drinking, without augmenting fresh sources. Government also realized the rational, and is supporting with policies promoting treated water use after the successful endeavor of Nagpur. This   has opened gates for USD 45bn+ drinking water and USD 25 bn+ sewage and reuse market for Private participation in India. Large Programs like Namami Gange ( Ganga Cleaning) is based on Hybrid Annuity PPP model. The objective is to create Sustainable, efficient & Accountable – environmental services and infrastructure, with People Participation.

With the understanding and sensitivity towards Indian culture, we see huge opportunities by improvising processes and effectively implementing the 4P model with the addition of a 4th P i.e. People —the citizens at large. In our opinion no business model can be sustainable in the long run without benefiting and involving the largest stakeholder i.e. the people.

Our insistence on benefits to all stakeholders, ability to structure the proposals accordingly, flexibility and management skills, sensitivity towards Indian culture resulted in the successful acquisition, assimilation and execution of various such projects. I foresee an extremely exciting future for VI L and can confidently state that we shall be the thought leaders in our chosen domain.

Nagpur 200 MLD by VIL

Globally water companies are developing technologies and management systems to deal with challenges faced with water scarcity and sewage water treatment. Vishvaraj Infrastructure Limited (VIL) however understands that the Indian context is different and it needs solutions which are local, competitive and socially acceptable. We develop implementation strategies keeping local situation in viewpoint as water is a very sensitive subject in our country. For us, driving innovations, creating sustainability, technological advancements, environmental friendliness and people’s involvement are the key drivers for the company in this sector.

Vishvaraj Infra saw this as a community requirement and a industry break. In contrast the demand for fresh water is growing rapidly, estimated to go from 813 BCM today to 1,447 BCM by 2050, whereas the resource base remains constrained at 1,122 BCM. The industrial sector, which is one of the major users of fresh water, mostly puts fresh water to non-potable. Wastewater treated up to secondary level can easily be utilized for this purpose freeing up huge amounts of freshwater for domestic consumers. This can easily be achieved by improving the municipal wastewater collection, treatment and reuse thus not only recycling wastewater which is otherwise lost but also save the downstream water bodies from pollution. This is the win-win proposition of VIL’s model for the all the stakeholders, a unique example of creating value from waste whilst contributing positively to environmental sustainability. Amongst the challenges thrown up by increased urbanization in India one of the bigger ones is massive increase in wastewater generation. The Central Pollution Control Board (CPCB) estimates that about 80 percent of the water supplied for domestic use is discharged as wastewater. This pollutes the downstream areas as it enters untreated into these water bodies. Around 38,250 MLD of wastewater is generated by class I and class II cities in India, which is estimated to grow 3.5 times to 132,250 MLD by 2050. The current wastewater treatment capacity can handle only 30 percent of the total generation, out of which only 55 percent is operational. This translates to an investment gap of over USD 7 Billion for class I and class II cities by 2016-17. Nagpur 200 MLD STP Treatment and Reuse on PPP basis. Nagpur is 10th largest Indian city with 2.5 Mn populations; Population is expected to grow to 5 Mn in the next 25 years and 3rd largest and most industrialized city after Mumbai and Pune in Maharashtra. The Objective is Providing Sewage Treatment for 200 MLD and possible reuse by potential Customers in Nagpur. Features include: Option to sale the treated water with revenue share with Client, 100% capital investment by Operator and Annuity based payment post construction period.

Water and Waste Water Treatment

Vishvaraj Pvt Ltd did some research and realized 89% of the total available water of around 890 cubic meter goes into agriculture, of the balance 11% goes to industry and drinking water needs are met. We need better supervision of water. The coverage of piped water, the metering of water and the adequate supply of 24 hours of pressurized water these are the three steps. So to bring first to the equitable water, we need to design the system, invest capital into the infrastructure and more importantly have budgets to maintain it what we have already built.

Here’s what Mr. Arun Lakhani has to say: What is necessary is an integrated approach to water management, by integrated approach we need to see the complete water cycle as a whole. So we detect it from a source, then the treatment part then the distribution part then the customer service part. So if you have 24×7 in the distribution part that absolutely improves not only the water quality & drinking water but also saves water. Then comes the second very important part is the sewage treatment. Sewage treatment and the reuse of sewage treated water complete the cycle.

The important part of Nagpur 24×7 contract is that it is very inclusive model. It provides for a tap in every household, irrespective whether it is in the slum area or the flat schemes and the bungalow area. Second thing, it is the sovereign rights are with the Nagpur Muncipal Corporation, the rights of connection disconnection, the rights to decide tariff to be charged to people: citizens and the ownership of all the assets remains with the Nagpur Municipal Corporation.

This is a joint venture of (VIL India) Vishvaraj Environment Limited and Veolia Water France. It is a 50-50 joint venture with a joint management. They bring in the worldwide expertise and knowledge across the globe and their experience which is very critical. I would say in half a year of 2487 water scheme for the whole of city is going on, we are a part of PPP, we have invested our part of the amount into the project almost 500 kilometers of pipeline changed. Over 100 thousands house connections have been replaced. First it was to bring equitable water distribution, some of the areas were getting two hours water and some of the areas were getting alternate day, some of the areas were getting 6 hours day water. So in these three and half years we have brought them to a minimum level across the city. Now we are converting area by area into 24×7 water. So out of the population of 25 lakh people 10 lakh people have been touched with an improved service. Fourth P that is the largest stakeholders the people, unless they are on boarded   and unless they become  part of the program and not just the user of the program it will always be difficult because communicating to them making them understand the difficulty and the benefits both. And giving them the responsibility of monitoring as well as communicating to the larger people, larger masses are essential.

Awards won by VIL

Nagpur 24×7 is one of the magnificent project of Vishvaraj Infrastructure Limited (VIL). Here are few things about the project: The City – Nagpur the 3rd major city & winter capital of Maharashtra state, Nagpur is India’s loath largest city with a populace of over 2.5 million people. It became the first city of its size in the nation to outsource its water supply to a private operator under the PPP model for 25 years. The one big objective was to provide l00% safe drinking water 24×7 to l00% of the population including the slum-dwellers within 5 years. The second major objective was to reduce Non Revenue Water below 25% in 10 years time. The contract was awarded to Orange City Water Limited — a 50:50 joint venture SPV company incorporated with equal equity stake of Vishvaraj Environment Pvt. Ltd. and Veolia Water of France. The project covers management of the entire water cycle from production, treatment (657 MLD), transport (2100 Kms of network), storage and delivery to the last point of usage i.e. the customers tap. This involves replacement of more than 3,00,00 house service connections, rehabilitation of treatment facilities, service reservoirs and pipeline. Social Inclusiveness was that every household including slums to get individual continuous piped water supply connection.

Mr. Arun Lakhani a man with a grand vision and a forward thinker makes India proud as a nation. India has vast requirement of Infrastructure building and improvement. Vishvaraj Infrastructure Ltd, which is heading Orange City Waters – Nagpur’s core Water Supply Manager, has managed to bring some moments of proud to the city. In the recently held World Water Leadership Congress and Awards in Mumbai, the company headed by Arun Lakhani has managed to make the cut with two prestigious awards. While Arun Lakhani, Chairman and Managing Director, Vishvaraj Infrastructure Ltd has been individually honoured with World Water Leadership Awards for his Outstanding Contribution towards Water, his company Vishvaraj Infrastructure bagged the award for Best Water Reuse Project.

The PPP route was established in last decade also saw some lean time. With New government initiative the PPP has again come with better risk sharing matrix between private and public. VIL India has been a proponent of PPP model, and has established track record in Road and highways sector.  With Urban Infrastructure foray in Water, it is today the only Indian Utility with ongoing projects in Water distribution as well as Waste water treatment and Reuse.

Mr. Arun Lakhani lives by what he says “This award is the recognition of my team’s hard work which put in their efforts. It’s never a one person; it’s a team work – Satyajeet, Suresh and all of them. My congratulations to them.” His humility and respecting people has got him a far way.

Mr. Arun Lakhani goes on to say people are important to every project. And if we take their views and opinions, it benefits only only the citizens of the country but also India as a nation.

Smart Water Management by Arun Lakhani

The Chairman & Managing Director of Vishvaraj Infrastructure Limited – Arun Lakhani says “Currently, the industrial sector, which is one of the biggest consumers of water, is supplied fresh treated potable water. They can easily use waste water treated up to the secondary level. As much as 80% of the water being supplied to cities is right there. It only needs to be treated and supplied to industries. Good potable water that industries get can be swapped for residential and drinking purposes.”

With the understanding and sensitivity towards Indian culture, VIL India sees huge opportunities by improvising processes and effectively implementing the 4P model with the addition of a 4th P i.e. People —the citizens at large. In our opinion no industry model can be sustainable in the long run without benefiting and involving the chief stakeholder i.e. the people. Our insistence on benefits to all stakeholders, ability to structure the proposals accordingly, flexibility and management skills, sensitivity towards Indian culture resulted in the successful acquisition, assimilation and execution of various such projects. I foresee an extremely exciting future for VI L and can confidently state that we shall be the thought leaders in our chosen domain.

Nagpur’s smart water management also known as Nagpur 24×7 is an example for other cities across India. A special train carried around five lakh litres of water for parched Latur in Maharashtra’s Marathwada region in April this year. The first batch of 10 wagons, each with a capacity of around 50,000 litres, travelled a distance of around 350 kilometres to reach their destination where water was stored in a well located near the Latur railway station. While these steps are necessary, such measures might not have been required in the first place had these cities managed their water systems well. And with the smart cities list being announced, it’s time these cities took a smart look at their water management systems.

The first city to take the lead is Nagpur, Maharashtra. Now included in the smart cities list, it has a population of over 2.5 million people and is the first city of its size in the country to outsource water supply to a private operator under the PPP model for 25 years. Under the scheme the main objective was to provide 24-hour 100% safe drinking water to 100% population including slum dwellers within five years. The second objective was to reduce non-revenue water (50% water supplied to towns which is untraceable, not recorded and not paid for) to below 25% in 10 years. The project included management of the entire water cycle from production, treatment, transport, storage and delivery to the customer’s tap. It involved replacement of over three lakh house service connections, rehabilitation of treatment facilities, service reservoirs and pipelines.

The aim of the project was to address problems of water that was being wasted and not getting billed. The city was supplying 575 million litres per day (mld) of treated water of which only 175 mld was getting billed and paid for. Most meters were either non-existent or non functional. Also, the city was receiving water supply for eight to 10 hours or on alternate days. The tanker mafia added to the problem. On the sewage side, the city was generating 550 mld of sewage and had the capacity to treat only 100 mld. The remaining untreated sewage was polluting water bodies that supplied water to the city.

Waste Water Treatment By Arun Lakhani

The water scenario in India has been on the uproar of the nation. With areas hit with drought and no water to drink it’s been a major concern for one and all in the country.  Amongst the challenges thrown up by augmented urbanization in India one of the bigger ones is enormous increase in wastewater generation. The Central Pollution Control Board (CPCB) estimates that about 80 percent of the water supplied for domestic use is discharged as wastewater. This pollutes the downstream areas as it enters untreated into these water bodies. Around 38,250 MLD of wastewater is generated by class I and class II cities in India, which is estimated to grow 3.5 times to 132,250 MLD by 2050. The current wastewater treatment capacity can handle only 30 percent of the total generation, out of which too only 55 percent is operational. This translates to an investment gap of over USD 7 Billion for class I and class II cities by 2016-17.

Here is what Mr. Arun Lakhani CMD of Vishvaraj Infrastructure Limited, VIL India has to say about the situation at hand – What is required is an integrated approach to water management, by integrated approach we need to see the complete water cycle as a whole. So we detect it from a source, then the treatment part then the distribution part then the customer service part. So if you have 24×7 in the distribution part that definitely improves not only the water quality & drinking water but also saves water. Then comes the second very important part is the sewage treatment. Sewage treatment and the reuse of sewage treated water complete the cycle. Sewage treatment or waste water treatment has been on Mr. Arun Lakhani’s mind for a while.

In Mr Arun Lakhani’s opinion if waste water is treated it can be used for industrial purpose, which gives leave way for fresh water to be used in household and agricultural activities in India. Currently the industrial sector, which is one of the biggest consumers of water, is supplied 89% of fresh, treated portable water. They can easily use waste water treated up to the secondary level. This not only frees up huge quantities of fresh potable water but also saves the downstream water bodies from pollution. As of now the household and agricultural sector receivers only 11% of fresh water. Vishvaraj Infrastructure Limited has been advocating this model for quite some time now and they are of the opinion that the operator need to invest 100% in infrastructure and technology for this model to be a complete success.

Successful implementation of Waste Water in India by VIL is the 200 MLD Waste Water Treatment Project in Nagpur. Nagpur City now has 24×7 pressurized water supplies for all the citizens of the city. Another waste water reuse opportunity is the Namami Ganga Program. VIL and the authorities of Namami Ganga are already working on this project.

The reuse of waste water opens up avenues for a more sustainable environment and fresh water supply to the citizens of the nation.