Wastewater Reform Takes Centre Stage as Finance Commission Pushes Urban Overhaul — Experts Say Rainwater Harvesting Must Be Made Non-Negotiable
Highlighting the critical importance of scientific wastewater management and the slow momentum of India’s urban transition, the 16th Finance Commission has proposed a massive ₹56,100 crore grant aimed at revamping drainage and wastewater infrastructure in select cities, along with a ₹10,000 crore “urbanisation premium” to speed up the shift from rural to urban governance.
The Commission’s report, tabled in Parliament of India on Sunday, made it clear that India’s future water security hinges on proper treatment of wastewater and smarter urban planning.
It noted that while major metros can mobilise funds independently, mid-sized cities struggle to upgrade drainage systems — making central fiscal support essential.
Under the Special Infrastructure Component, 22 cities will benefit from targeted wastewater projects. These include Pune, Jaipur, Lucknow, Kanpur, Nagpur, Patna, Rajkot, Amritsar, Madurai, and Howrah, among others.
The Commission pointed to Indore as a model of effective liquid waste management.
By intercepting sewage outflows, strengthening sewer networks, and preventing untreated wastewater from entering rivers and storm drains, the city achieved top rankings in Swachh Survekshan for seven straight years — though recent contamination-related deaths underline the need for constant monitoring.
Beyond infrastructure, the report flagged a deeper structural issue: India’s painfully slow urbanisation.
Many rapidly growing areas continue to remain under rural governance despite having urban characteristics, leaving them ill-equipped to handle population pressure, sanitation, and water needs.
To fix this, the Commission proposed the ₹10,000 crore urbanisation premium to encourage faster conversion of census towns and the merger of peri-urban zones into municipal bodies.
Overall, urban local bodies are set to receive ₹3.56 lakh crore between 2026–27 and 2030–31, covering basic grants, performance incentives, wastewater infrastructure, and urban transition support.
The Bigger Picture: Wastewater + Rainwater Harvesting = Water Security
While the funding push is a major step, experts believe true long-term water security will only come when two priorities are enforced together — scientific wastewater treatment and mandatory rainwater harvesting for every household and building.
If wastewater is recycled efficiently for non-drinking purposes and rainwater harvesting systems are made strictly compulsory — not just on paper — India could dramatically reduce groundwater depletion and urban flooding.
With serious enforcement and public participation, the country may never face a water crisis in the decades ahead.
The message is clear: infrastructure investment must go hand in hand with strict environmental discipline.
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