The IIT Consortium (IITC) which is responsible for preparing the master plan for Ganga rejuvenation, has shared a draft blueprint to finance the rejuvenation and restoration of the river, at India International Centre in New Delhi.
The Consortium has already submitted the Ganga River Basin Management Plan 2015 (GRBMP) to the Government of India earlier in January.
The blueprint was a collective output of a multi-stakeholder group, IITC+ (IITC Plus) that has more than 150 national and international members. IIT Kanpur and Oval Observer Foundation, which is one of the working group members of the IITC+, has jointly organised the workshop.
Presenting a plan, Dr. Vinod Tare, Professor at IIT-Kanpur and Coordinator for GRBMP, outlined that the policy requires a paradigm shift in the approach to addressing the underlying problem.
Dr. Tare stressed the need to focus on developing Urban River Management Plans (URMPs) for the various strands of the Ganga River Basin.
GRBMP suggests that the magnitude of the problem requires a capital expenditure of nearly 6-7 lakh crores rupees (appx $100 bn) just to address the sewage, industrial effluents and municipal solid waste that is dumped into the river. It is essential that PPP models succeed as private sector capital base is crucial to compliment what the Government plans to spend.
The organisation laid down several conditions including making zero liquid discharge essential for large industrial polluters and creation of a market for treated sewage.
“The fundamental risk in a PPP type structure that the Government has to address is the counter party payment risk. If that is addressed through guarantee instruments, then this market can indeed take off,” said Sanmit Ahuja, a subject matter expert and a member of the IITC+ group.
He also presented ten advanced financial and economic instruments that can further make the PPP framework robust and bankable. These include, Ganga Blue Bonds, Shadow Tariffs, Credit wrapping and Enhancement, Water Quality Trading, Take-out Financing, F/x and Interest Rate Derivatives.