In response to rising water shortages, both urban and rural, caused by inadequate infrastructure, excessive ground water pumping and rising demand by industrial and commercial users, the U.S. Government, through the U.S. Agency for International Development (USAID), supported the development of a large scale water reuse project in collaboration with the Nagpur Municipal Corporation (NMC).

In response to the ongoing water crisis, USAID’s Water and Energy Nexus Activity (WENEXA) team developed a water reuse project jointly with NMC in recognition of the fact that water reuse is a critical component in NMC’s long-term water resources master plan. Next, the WENEXA team developed detailed pre-feasibility studies and engaged various end-users and stakeholders to begin project development. NMC reached an agreement with MahaGenco (the 12,000 MW state-owned power generation company) to use treated waste water as a source for the substantial water needs of its power plants. 
 
Separately, NMC entered a project agreement with MahaGenco to supply up to 110 million litres per day (MLD) to a new 1,000 MW coal-fired power station to be owned and operated by MahaGenco. NMC will build a new sewage treatment plant capable of producing and conveying high quality water to MahaGenco, some 15 kms away.

This will result in the increased availability of fresh water for NMC from regional water reservoirs to serve its growing needs – some 1m people will directly benefit by this water reuse scheme. USAID is also pleased that NMC and MahaGenco have received a co-financing commitment of 70% of the INR 1.3 billion (US$28m) total project costs in the form of a capital grant from India’s JnNURM (Jawaharlal Nehru National Urban Renewal Mission) for the construction of this project.