The Hindu Business Line : Experts stress need for restriction on packaged water companies

Bangalore, June 30 Overexploitation of ground water mainly by packaged water companies and the borewell segment may push the country to the brink of water scarcity by 2040, said senior officials at a seminar on the packaged water industry here on Tuesday.

The seminar was organised by CII.

Mr T. M. Hunse, Regional Director, Central Ground Water Board, said India was the tenth largest bottled water consumer in the world. The country’s lucrative packaged water industry is worth Rs 1,000 crore and is among the fastest growing in the world, growing at 40 per cent a year.

Industries using water as raw material – such as packaged water sector, breweries and distilleries – should be treated separately from other industries and their tapping in safe areas should be restrained. The industry has social obligations on safety and resource conservation, he said.

He said ground water meets 80 per cent of rural and 50 per cent of urban water needs. “Ground water is the cleanest and cheapest source for all, but in some places we have over-extracted and polluted it. We will have to recharge and revive our groundwater bodies and for this existing laws will have to change.”

Giving a glimpse of hard times to come, Mr Hunse said the per-capita availability of water a year fell from 5,000 cu.m in 1947 to 2,000 cu.m in 2000. “It will be designated water-stressed if this figure falls below 1,800 cu.m, and we are approaching it. The availability may go below 1,000 cu.m by 2040 and India may become water-scarce by 2040 if the trend continues,” he said.

Speakers said the sector was driven by southern consumers. Going by the large number of applications received by the Bureau of Indian Standards, the water industry is poised for a high growth, according to the Director of BIS, Mr S. Ranganathan.

He said Karnataka, Tamil Nadu and Andhra Pradesh accounted for half the industry. Hygiene standards dominate over 50 per cent of the BIS guidelines for the packaged water sector, he said.

Mr Ram Mohan Mishra, Joint Secretary, Ministry of Water Resources, urged the industry to think of the long-term impact on society. The seminar discussed issues facing the bottled water sector, ranging from water and hygiene standards, manufacturing processes, R&D to disposal of plastic waste.

According to Mr Pratik Pota, Head-South, Pepsico India, “Innovation that is going to happen in the packaged drinking water sector will surprise Indian industry.” Water pouches manufacturing and retail make up half of it. The market is highly fragmented, but it is one of the fastest growing markets across the world.

He said while all regions show a healthy growth pattern, the South was higher with 28 per cent growth rate a year. This was due to higher disposable incomes, mobility, increased awareness of hygiene and increased availability.

Mr T. Parabrahman, Chairman, CII Karnataka, said companies generated a big demand of safe drinking water among their employees.

Dr A.B. Harapanahalli, Director (S), Ministry of Environment and Forest, and Dr Sania Akhtar, Deputy Director & Head, Central Institute for Plastic Engineering and Technology, spoke on the impact of plastics on environment and safe recycling of used water bottles.

Mr Jeffrey Smith, GM, and Dr T.N.V.V. Rao, Regional Head, Underwriters Laboratories, and Mr Sankar, GM-Technical, Ion Exchange India, made presentations.