State notifies comprehensive framework to boost wastewater reuse, aiming to strengthen urban water security, cut freshwater dependence and promote sustainable resource management
The Odisha government notified a new policy on the reuse of treated used water in the urban areas of the state to strengthen water security and promote sustainable resource management. It laid down an ambitious roadmap to convert urban wastewater into a productive economic resource.
The ‘Policy on Reuse of Treated Used Water of Urban Odisha, 2026’, one of the most comprehensive water reuse frameworks introduced by any state, seeks to address rising seasonal and spatial water stress in urban areas while advancing the principles of circular economy and climate resilience.
The new policy, formulated by the Housing and Urban Development (H&UD) Department, sets clear and time-bound targets for urban local bodies (ULBs) across the state. It aims at ensuring 100 per cent collection, conveyance and treatment of used water by 2030, alongside achieving at least 20 per cent reuse of treated water by the same year.
The state government has further fixed a long-term target to scale up treated water reuse to a minimum of 50 per cent by 2036, marking a transformative shift in urban water governance. In cities where sewerage systems and sewage treatment plants are already functional, at least 20 per cent reuse of treated water will be achieved within six months.
Currently, Odisha generates around 1,104 million litres per day (MLD) of used water, but only about 190 MLD is being treated. With rapid urbanisation, industrial growth and increasing pressure on freshwater reserves, the reuse of treated water is expected to reduce dependence on rivers, reservoirs and groundwater sources, particularly during summer months when many urban centres face water shortages.
Officials said the initiative recognises treated wastewater as a valuable secondary water source rather than waste. “The policy has been designed to bridge this substantial treatment gap by expanding sewerage and treatment infrastructure, ensuring universal access to wastewater treatment systems, and mandating compliance with prescribed quality and safety standards for reuse in non-potable sectors,” said an official of the H&UD Department.
The policy will focus on a wide range of sectors where treated water can be safely utilised. In the municipal and institutional segment, treated water will be encouraged for road cleaning, firefighting, sanitation, gardening, parks maintenance and heating, ventilation and air conditioning (HVAC) systems in large establishments.
The treated resource can be used in power plants, cooling systems, boiler feed, construction activities and process water needs in the industrial sector. For the agricultural and environmental sector, the policy promotes its use in irrigation, wetland restoration, rejuvenation of urban lakes and ponds, and maintenance of green belts.
The state government has also introduced an innovative TUW tariff model under which treated used water will be priced lower than potable freshwater to ensure market acceptance and demand creation. The pricing mechanism is intended to make treated water commercially attractive for industries, institutions and municipalities, the official said.
The H&UD Department has proposed a series of incentives to accelerate adoption. Farmers will receive water credits for using treated water for irrigation, while industries can avail tariff rebates and viability gap funding (VGF) support for infrastructure adaptation. Similarly, residential societies using treated water for flushing, landscaping and common area maintenance will receive rebates. Performance-linked incentives and disincentives have also been built into the framework to improve compliance and accountability.
A robust governance mechanism has been created for proper implementation of the policy. A state High Powered Committee (HPC) will function as the apex body for policy direction, pricing decisions and inter-departmental coordination. It will be supported by a state-level Technical Committee (LTC) and a dedicated treated used water cell to handle planning, monitoring and technical support. The District Coordination Committees (DCCs) will facilitate demand aggregation, local partnerships and implementation at the field level.
According to the policy framework, the H&UD Department will serve as the nodal authority for regulation, standards and policy oversight. Agencies such as Odisha Water Supply and Sewerage Board (OWSSB), WATCO and the Public Health Engineering Organisation (PHEO) will be responsible for infrastructure development, operation and maintenance. The Odisha Urban Academy (OUA) will spearhead capacity building, training, innovation and research.
Urban development experts said the policy can significantly reduce freshwater demand in growing cities such as Bhubaneswar, Cuttack, Rourkela, Sambalpur, Berhampur, Balasore and Angul, where industrialisation, population growth and infrastructure expansion are increasing pressure on conventional water sources. The reuse of treated water can also help lower pollution loads entering rivers and drains by ensuring greater wastewater treatment.
The policy aligns with the National Framework on Safe Reuse of Treated Water, 2023, and the objectives of AMRUT 2.0, positioning Odisha as a frontrunner state in integrated urban water management.
Source: https://tinyurl.com/yn4vtucr
