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Rapid industrial development in India is escalating demand for fresh water in the increasingly water-stressed country. Owing to India’s large coastline, desalination is considered one of the most viable water supply alternatives.
New analysis from Frost and Sullivan (F&S) has noted that the market earned revenues of Rs 11.20 lakh in 2011 and estimates this to reach Rs 74.80 lakh in 2015.
“Mumbai has high per capita water consumption, while the demand for water in Chennai is expected to increase four times by 2025,'' said a F&S research analyst. “As both Mumbai and Chennai are located near the coast, desalination is deemed the most feasible option.''
However, despite the large market for desalination, plant owners have to depend on external financing agents such as national and foreign banks. This slows down the financial approval process for municipal projects and, therefore, and the market as a whole. With appropriate government initiatives and legislations on water treatment and private partnerships, the desalination market is expected to pick up steam after 2012, said the analyst.
Referring to the growth opportunities in the Indian desalination market, a report from F&S adds that the desalination market is in its growth stage and has substantial opportunities for the next 10 years. Industries such as power, refineries, and chemicals continue to adopt efficient and sustainable technologies for the supply of fresh water.
Apart from industrialisation, the report has said economic diversification and urbanisation make a robust case for desalination. Urban centres account for more than 30 per cent of the total population of India and the rate of urbanisation is estimated at 2.5 per cent during 2010-2015. This directly translates to declining per capita water availability.
The analyst added that the market would get a leg up from larger government funds, municipal desalination projects, and coastal industry power projects.
“Reliability, efficiency, and technical experience are the other key factors considered by end users while choosing desalination suppliers,'' noted the analyst. "A company that provides end-to-end solutions and lowers the operational and energy consumption cost to the end-user will occupy a central position in Indian market.”
>amritanair.ghaswalla@thehindu.co.in
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