Frequently Asked Questions
Planning & Project Formulation
1What is the objective of UWM in SBM?
The objective of UWM is to achieve 100% used water treatment using the right mix of solutions, to meet the requirements for ODF++ and Water+ certification.
To treat all the used water discharged, it is important to address various ULB contexts, such as, densely populated areas, isolated developments in fringe areas etc. Each type of development may require a different solution, and multiple solutions may be available too. Cities are encouraged to find a combination of solutions based on local conditions (hydro-geological, topographic, citizen preferences, ability to undertake O&M) and available funds.
2What is used water?
Used water (wastewater) is all the water discharged after use. Under SBM, the focus is on management of used water from households, commercial, and institutional establishments. The two main types of used water include black water (used water from toilets) and grey water (used water from bath, kitchen, laundry, and other non-toilet uses).
In a majority of small and medium sized ULBs (eligible for SBM funding for used water management), liquid waste is discharged in two ways –
(i) the used water flowing in open drains (or storm water drains), and
(ii) the faecal sludge/septage emptied periodically from single pits/septic tanks. Used water in drains may comprise of either grey water (the non-toilet discharge, where toilets are connected to single/twin pits or septic tanks with soak pits) or grey water mixed with overflows/effluent from septic tanks. The drain may also contain other kinds of water like storm water, industrial effluent or black water (in case, the toilets are directly connected to drains). A small number of ULBs do not discharge any used water into drains as households have soak pits for both toilet and non-toilet discharge. Such ULBs only generate faecal sludge.
(i) the used water flowing in open drains (or storm water drains), and
(ii) the faecal sludge/septage emptied periodically from single pits/septic tanks. Used water in drains may comprise of either grey water (the non-toilet discharge, where toilets are connected to single/twin pits or septic tanks with soak pits) or grey water mixed with overflows/effluent from septic tanks. The drain may also contain other kinds of water like storm water, industrial effluent or black water (in case, the toilets are directly connected to drains). A small number of ULBs do not discharge any used water into drains as households have soak pits for both toilet and non-toilet discharge. Such ULBs only generate faecal sludge.
3How to assess the gaps in used water management in the ULB?
To assess the gaps, it is important to
1. Understand the current scenario of sanitation, for which one needs to review available data across the sanitation chain and collect primary data from an appropriate sample. To understand what data to collect and how, please refer to baseline and data collection section under stage 1
2. Identify and analyse existing sanitation/UWM infrastructure (water supply systems, Toilet typology, desludging trucks, STP/FSTP capacity, drain end points etc.)
3. Evaluate present and future demand for UWM infrastructure
4. Identify gaps to propose appropriate interventions to meet the demand of projected population
1. Understand the current scenario of sanitation, for which one needs to review available data across the sanitation chain and collect primary data from an appropriate sample. To understand what data to collect and how, please refer to baseline and data collection section under stage 1
2. Identify and analyse existing sanitation/UWM infrastructure (water supply systems, Toilet typology, desludging trucks, STP/FSTP capacity, drain end points etc.)
3. Evaluate present and future demand for UWM infrastructure
4. Identify gaps to propose appropriate interventions to meet the demand of projected population
4How much fund is available under SBM for UWM?
UWM funds are allocated on per capita basis. The estimated population of year 2021 is used to arrive at the total funds. Approximately Rs 1240/capita is the central share available for used water management. Please refer Annexure 4 of SBM guidelines for state wise budget allocation for UWM.
5What all components of used water management are eligible for funding under SBM-U 2.0?
Under SBM-U 2.0 (Swachh Bharat Mission – Urban 2.0), funding is primarily available for three key components of used water management.
1. Implementation of Sewage Treatment Plants (STPs), with provision of co-treatment, to expand used water and faecal sludge treatment capacity. This helps strengthen used water management of the ULBs, supporting SBM-U 2.0’s vision of a Water-Secure Urban India.
2. In case the ULB is not able to arrange funds for sewerage network, as an interim solution, funding for interception and diversion (I&D) systems is available. These systems are designed to capture and redirect used water flowing in storm water drains, that would otherwise flow untreated into natural drains and/or water bodies. By channelling this used water toward sewage treatment plants (STPs), cities can significantly reduce pollution of water bodies and enhance water quality.
3. The third is desludging equipment, which plays a crucial role in improving faecal sludge and septage management (FSSM). Regular emptying of septic tanks, using these equipment helps prevent untreated used water and faecal sludge from contaminating the environment. ULBs can also use these funds to procure Personal Protective Equipment (PPE) to ensure safety of desludging operators. States and cities are encouraged to augment the funds available under SBM with additional funds to achieve UWM objectives.
1. Implementation of Sewage Treatment Plants (STPs), with provision of co-treatment, to expand used water and faecal sludge treatment capacity. This helps strengthen used water management of the ULBs, supporting SBM-U 2.0’s vision of a Water-Secure Urban India.
2. In case the ULB is not able to arrange funds for sewerage network, as an interim solution, funding for interception and diversion (I&D) systems is available. These systems are designed to capture and redirect used water flowing in storm water drains, that would otherwise flow untreated into natural drains and/or water bodies. By channelling this used water toward sewage treatment plants (STPs), cities can significantly reduce pollution of water bodies and enhance water quality.
3. The third is desludging equipment, which plays a crucial role in improving faecal sludge and septage management (FSSM). Regular emptying of septic tanks, using these equipment helps prevent untreated used water and faecal sludge from contaminating the environment. ULBs can also use these funds to procure Personal Protective Equipment (PPE) to ensure safety of desludging operators. States and cities are encouraged to augment the funds available under SBM with additional funds to achieve UWM objectives.
6Population projection for which year should be considered while planning and designing used water management systems
While planning and designing used water management systems, the population projection (for both permanent/resident and floating) should be considered for the design period of the proposed infrastructure, as per CPHEEO Manual, to ensure long-term sustainability.
Under SBM, however, it is proposed that population in 2026 should be considered, to address the present problem and not create infrastructure for future, as it is difficult to predict the direction in and extent to which the town will grow. Moreover, with advancement of technology more efficient systems will be available, in future, that can be added to installed infrastructure, in modular fashion, to cater to future demand.
Nevertheless, ULBs can still implement systems for projected population beyond 2026. It is expected that additional expenditure for catering to the demand of population beyond 2026 will be accommodated through State government funds or other financial sources. The Detailed Project Report (DPR) should document this funding approach, showing expenditure for 2026 demand being met from mission funds and expenditure for future demand met from separate state or other funds.
7How to estimate used water and faecal sludge generation for the projected population?
Used water generation depends on the projected population (including both fixed and floating population) and water consumption/discharge of the ULB, while faecal sludge generation depends on the population dependent on the onsite sanitation systems (like pits and septic tanks). One can refer to gap analysis section to understand in detail how to compute the used water and faecal sludge generated in a town.
8What is a drain end point and how to identify it?
An open or a closed channel that conveys storm water is known as a drain or a storm water drain. It can be a natural or a constructed drain. While natural drains convey water from uphill areas to generally a water body like lake or a river. Constructed drains are developed to drain out excess rainwater from paved surfaces. But, in absence of a dedicated conveyance mechanism for used water, it often finds its way into these natural and constructed drains. Locations, like water bodies/open areas where existing drains are discharging used water, are known as outfall or Drain End Points. Drain end points can be identified through tracing the drain path manually or by following a drainage map.
9Is it necessary to identify endpoints of all the drains in the ULB?
It is necessary to identify and map all the drain end points, to ensure that no used water generated in the ULB goes unchecked. Minor drains, which cannot be diverted towards the main drain (generally not less than 75 cm in width) and are not carrying enough used water may be avoided in this first phase of investment or can be handled through a decentralised approach.
10Why do we need to measure the flow in drains, when we are estimating the used water generation?
To ensure that the treatment plant is designed according to the used water (that can be tapped through drains) generated in a ULB, it is necessary to validate the estimate used water at the town level with the flow measured in the drain(s). This will ensure that the systems are neither under designed nor over designed.
11Is it mandatory to plan and design treatment system keeping 2026 as the design year, or can the design adhere to the CPHEEO Manual guidelines?
The SBM funding is restricted to 2026 as the volume of used water that could be tapped through the drain endpoints or partial sewers is a small fraction of total used water generated in the ULBs. And designing systems for 15 years or more would only lead to over-designed structures. However, it is not mandatory to keep 2026 as design year, and one can design the systems as per CPHEEO Manual guidelines, but States will have to arrange the funds for additional modules and capacity.
12How to decide the best suited used water treatment technology for one’s ULB. What factors should be considered while selecting treatment technology?
This flowchart can be used to filter out the best suited treatment technology for a given ULB.
13If the land is not available for STPs and FSTPs, what measures to be adopted?
If adequate Government-owned land is not available for STPs and FSTPs, the state should prioritize land procurement or purchase, as establishing a used water treatment facility will eventually become necessary for the ULB. Acquiring land at an early stage ensures cost-effectiveness, as land prices are likely to increase over time. Delaying the purchase may lead to higher costs and space constraints in the future, making it even more challenging to set up essential used water infrastructure. Investing in land now will secure space for future expansion and ensure long-term sustainability in used water management.
If one land of adequate size is not available, ULBs can look for smaller parcels of land and plan for decentralised used water management.
14How should ULBs with no existing sewer network approach used water management?
ULBs with no sewerage network should follow an incremental approach by first ensuring that a treatment plant is implemented and is made operational by bringing in used water to common point(s) through interception and diversion of drains. The STP(s) should be designed to also co-treat septage generated in the ULB. The STP should be located such that in future when sewerage network is implemented the same STP (with expanded capacity, if required) can treat the used water conveyed via sewers. Smaller ULBs and pockets in larger ULBs that do not discharge considerable used water in drains can also consider onsite and community level decentralised used water management.
15Is it necessary for each town to have only one STP?
It is not necessary. The number of STPs may be decided based on topography, availability of land parcels, and life-cycle cost of infrastructure and pipelines. Having multiple STPs may help avoid pumping of used water and long pipelines which add to costs. It is suggested that both options (with one and multiple STPs) along with their respective conveyance systems should be compared to find an optimum cost for the entire system.
16How should used water be managed in fringe areas/pockets which aren’t possible to cover through drainage/sewer networks?
Used water management in fringe areas or pockets that are not feasible to connect to drainage or sewerage networks should explore onsite or community level decentralised approach to ensure proper treatment and disposal of Used water.
If the volume of used water is less than 10 KLD, check feasibility of leach pit or dispersion trench. Feasibility of DEWATS or multiple leach pits (of maximum 10 KLD each) can be checked in case the used water is more than 10 KLD.
17Are there any norms for costing key components, including cost per kilometre of interception & diversion (I&D) sewer, Sewage Treatment Plant (STP) costs, and other related expenditures.
Here is a rough estimate for reference:
• Interception & Diversion (I&D) - The average cost considered for I&D works is Rs.50-60 lakh per kilometre. This cost may increase in towns with catchment population more than 75,000.
• Sewage Treatment Plant (STP) - The cost ranges from 1.2 crores/MLD to 1.8 crores/MLD depending on the capacity of the plant and the technology selected.
• Desludging Vehicles - Standard rates from GeM (Government e-Marketplace) portal can be considered.
• Faecal Sludge Treatment Plant (FSTP) – The cost ranges from 2.5 lakhs/KLD to 7 lakhs/KLD depending on the capacity of the plant. The final cost of the components should be finalized based on the prevailing Schedule of Rates (SOR).
• Interception & Diversion (I&D) - The average cost considered for I&D works is Rs.50-60 lakh per kilometre. This cost may increase in towns with catchment population more than 75,000.
• Sewage Treatment Plant (STP) - The cost ranges from 1.2 crores/MLD to 1.8 crores/MLD depending on the capacity of the plant and the technology selected.
• Desludging Vehicles - Standard rates from GeM (Government e-Marketplace) portal can be considered.
• Faecal Sludge Treatment Plant (FSTP) – The cost ranges from 2.5 lakhs/KLD to 7 lakhs/KLD depending on the capacity of the plant. The final cost of the components should be finalized based on the prevailing Schedule of Rates (SOR).
18Is there any exception or criteria under which ULBs/states can request additional funds?
While the funding is sub-component wise capped, and informed, but if still the States seek additional funds for certain components, respective State Mission Director can write an email to Joint Secretary, SBM requesting for the same along with proper justification of the additional funds. Advisor in Charge, CPHEEO should be copied in the email.
19Can the ponds/lakes currently receiving used water be modified for treatment purposes rather than diverting water away? If yes, clarity is needed on necessary permissions and approval process.
The local administration should take a decision based on the perceived utility of the pond. Ideally, the encroachment of ponds/lakes should be avoided, and land adjacent to the water body could be considered to setup the treatment units, while the pond/lake can be used as the polishing pond.
In dire circumstances a portion of the pond (not more than 30%) may be considered for installing the treatment system, provided permission from the concerned department is sorted.
20How to choose ideal land(s) for developing used water treatment facility.
Ideally, land(s) should be identified or acquired near the discharge points of major drains. The selected plot should be sufficiently large to accommodate a higher-capacity treatment facility in the future, in accordance with the projected requirements for the design period.
DPR Preparation
1What key information must be included in the Detailed Project Report (DPR)?
• Introduction – City/Ward Map, Existing drainage, mapping of the drain(at-least all drain end points)
• Baseline Assessment- Data collection & analysis, Population, Used water generation, existing toilet and containment infrastructure, sewerage coverage, drainage system status, effluent discharge points, existing infrastructure with capacity and year of completion, ongoing projects with capacity and year of completion
• Population projection
• Gap Analysis – management of black water, grey water and faecal sludge
• Land availability
• Possible conveyance and treatment options
• Proposed Solution & Technology based on Life Cycle Cost Analysis
• Project Components & Design – Design methodology, design period, design of various components
• Cost Estimates - BOQ of individual components
• Implementation Strategy
• Detailed Operation & Maintenance plan for 5 years with specific details on the different revenue streams.
• Baseline Assessment- Data collection & analysis, Population, Used water generation, existing toilet and containment infrastructure, sewerage coverage, drainage system status, effluent discharge points, existing infrastructure with capacity and year of completion, ongoing projects with capacity and year of completion
• Population projection
• Gap Analysis – management of black water, grey water and faecal sludge
• Land availability
• Possible conveyance and treatment options
• Proposed Solution & Technology based on Life Cycle Cost Analysis
• Project Components & Design – Design methodology, design period, design of various components
• Cost Estimates - BOQ of individual components
• Implementation Strategy
• Detailed Operation & Maintenance plan for 5 years with specific details on the different revenue streams.
2Will the funding per ULB remain as approved in the City Sanitation Action Plan (CSAP), or can it be revised during the Detailed Project Report (DPR) development stage?
The funding approved in the City Sanitation Action Plan (CSAP) is based on a preliminary assessment for rough fund allocation. However, during the Detailed Project Report (DPR) development, a more accurate evaluation of project costs is conducted. Since DPR is the final stage for determining actual costs, any increase due to design modifications, revised project scope can be proposed for consideration.
3Is there a model DPR available, which one can refer to, while preparing DPRs for their respective towns?
There is no specific model DPR available for reference. However, the Ministry has shared DPRs received from various states as good examples for guidance.
4Is it mandatory to consider 70% of projected population in 2026 for designing the Used-water Treatment Plant?
Under SBM-U 2.0, it is not mandatory to consider only 70% of the projected population in 2026 while designing the Used Water Treatment Plant (or STP) for small and medium towns with a population of less than 1 lakh (as per Census 2011). It is advised to consider 70% of proposed population (this number will differ if there are more than one treatment plants in the ULB) due to following reasons:
• Many ULBs do not yet have a sewer network or complete coverage with storm water drainage, and designing an STP for 100% of the projected population could result in inefficient utilisation of funds.
• To ensure that at-least 70% of the populations’ used water is treated
• To ensure that used water that can be efficiently collected, is treated
• Based on core zone concept when the network is provided to high density area(s), coverage in 30% of the area will be able to cater to 70% population
However, if a ULB already has a sewer or storm water drains network and it is expected that used water collection efficiency and plant utilization will be optimal, then the STP can be designed for 100% of the projected population as well.
• Many ULBs do not yet have a sewer network or complete coverage with storm water drainage, and designing an STP for 100% of the projected population could result in inefficient utilisation of funds.
• To ensure that at-least 70% of the populations’ used water is treated
• To ensure that used water that can be efficiently collected, is treated
• Based on core zone concept when the network is provided to high density area(s), coverage in 30% of the area will be able to cater to 70% population
However, if a ULB already has a sewer or storm water drains network and it is expected that used water collection efficiency and plant utilization will be optimal, then the STP can be designed for 100% of the projected population as well.
5What are the discharge standards for effluent to be considered for designing STPs and FSTPs?
The discharge standards for effluent must follow the Environmental Protection Act (EPA), 1986, as per Central Pollution Control Board (CPCB) guidelines. However, if a ULB intends to recycle treated used water, it can opt for more stringent treatment standards that are “fit for the purpose” of reuse and recycle, for the quantity of used water being reused.
6Apart from the treatment unit, what other components can/should be considered in a DPR for used water management?
Apart from the treatment unit, a DPR for UWM may include essential components such as the interim used water collection system, which comprises of pumping stations and Interception & Diversion (I&D) structures, including screens, gates, weir systems, pipe size and material , desludging equipment, PPE kits, and other necessary equipment.
7Can the SBM-U funds be used for operation and maintenance of sewerage infrastructure?
No, the SBM-U funds cannot be used for the operation and maintenance (O&M) of sewerage infrastructure. The O&M costs must be borne by the State and ULBs through their own resources.
8How to verify the costing proposed by a consultant/contractor for developing/ implementing a DPR is not inflated?
Please refer to decision matrix to get an idea about the cost of implementing various types of treatment systems and the I&D systems. Variation (based on local considerations), if any, that is analysed and justified, of up to 20% could be accepted in case of extreme cases. An independent techno-financial review, including the BOQ and technical designs could also be conducted preferably by a technical institute like IIT/NIT.
9Why is it necessary to map and include major drain details in the DPR?
Mapping and including major drain details in the DPR is crucial for identifying used water flow patterns, key interception points, and suitable treatment locations. It helps determine how many people and how many wards contribute used water to each drain, ensuring appropriate design of STPs, FSTPs, and I&D structures. Proper mapping also supports drainage upgrades, integration with future sewer networks, and compliance with environmental norms, making the system more efficient and sustainable.
Procurement and implementation
1Are there any model bid documents available for states?
Yes, model bid documents are available for reference. Bid documents from other states have been provided as examples, which can be referred to.
2What kind of equipment can be procured through the GeM portal for used water management projects?
Various equipment for used water management projects can be procured through the GeM (Government e-Marketplace) portal. For Sewage Treatment Plants (STPs), essential equipment such as pumps, blowers, aerators, diffusers, clarifiers, and sludge dewatering units can be procured. Desludging vehicles, safety gears and sewer cleaning machines can also be procured.
3If small projects or projects with lower funding are not attracting bidders during tendering, what measures can be taken to address this issue?
If small projects or projects with lower funding are not attracting bidders during tendering, certain measures can be taken to resolve this issue. One approach is to combine multiple components within a single tender, such as Interception & Diversion (I&D) with STP, to make the project more attractive for bidders. Alternatively, a cluster-based approach can be adopted, where multiple ULBs are grouped together under a single contract, ensuring better economies of scale and increased bidder participation. These strategies help in making the project financially viable and more appealing to contractors.
The state may also make it mandatory for bidders of larger projects (generally in larger towns of the state) to also take up a cluster of projects in small towns.
The state may also make it mandatory for bidders of larger projects (generally in larger towns of the state) to also take up a cluster of projects in small towns.
4In what all ways can one involve private sector in implementation and operations of components of used water management?
By leveraging private sector expertise, innovation, and financing, ULBs can significantly enhance their used water management systems. For instance: -
Planning - Smart Data collection - Smart Data collection and analysis – GIS mapping, topographic survey
Designing - Project formulation and DPR development
Implementation - Construction of infrastructure (Public private partnerships for used water treatment)
Operation - Operation and maintenance of conveyance structure, STPs and desludging equipment
Financing - Bank loans for CapEx, Corporate Social Responsibility (CSR) funding for certain component of used water management
Monitoring - IoT based monitoring of systems
Re-use - Potential buyers (industries) for treated water and bio-solids
Planning - Smart Data collection - Smart Data collection and analysis – GIS mapping, topographic survey
Designing - Project formulation and DPR development
Implementation - Construction of infrastructure (Public private partnerships for used water treatment)
Operation - Operation and maintenance of conveyance structure, STPs and desludging equipment
Financing - Bank loans for CapEx, Corporate Social Responsibility (CSR) funding for certain component of used water management
Monitoring - IoT based monitoring of systems
Re-use - Potential buyers (industries) for treated water and bio-solids
5What role do Swachhta Knowledge Partners (SKPs) play in implementation?
There are 23 Swachhta Knowledge Partners empanelled by the Ministry of Housing and Urban Affairs (MoHUA). The states can use their services for building capacities of officials in planning, designing, implementation, and operation & maintenance of various components of used water management. They can also seek handholding support in development of DPRs, Tenders etc. The scope of work can be mutually decided amongst the States and the respective SKPs through an MoU signed between the two parties. Capacity Building funds under SBM can be used for the same. Here is the list of SKPs for your reference:
• Administrative Staff College of India (ASCI)
• All India Institute of Local Self Government (AIILSG)
• Amity University, UP (Ritnand Balved Education Foundation)
• CDD India
• Center for Good Governance, Dr R.S.T. Uttarakhand Academy of Administration, Nainital (ATI)
• CEPT Research & Development Foundation
• Feedback Foundation Charitable Trust
• Goa Waste Management Corporation
• Hasiru Dala
• Himalayan Institute for Environment, Ecology & Development (HIFEED)
• IORA Ecological Trust
• Mahatma Gandhi State Institute of Public Administration
• National Institute of Urban Management
• Regional Centre for Urban and Environmental Studies (RCUES)– All India Institute of Local Self Government, Mumbai
• Regional Centre for Urban and Environmental Studies (RCUES), Lucknow
• Saahas
• Shriram Institute for Industrial Research
• Skill Council for Green Jobs
• Consortium of TERI School of Advanced Studies and Indian Pollution Control Association
• TNIUS
• University of Science and Technology Meghalaya
• Urban Management Centre (UMC)
• Water Sanitation and Hygiene Institute (WASHi)
Note: Not all SKPs can deliver training programs in all subjects, states should do their due diligence in selecting SPKs. And hire agencies based on their areas of expertise.
• Administrative Staff College of India (ASCI)
• All India Institute of Local Self Government (AIILSG)
• Amity University, UP (Ritnand Balved Education Foundation)
• CDD India
• Center for Good Governance, Dr R.S.T. Uttarakhand Academy of Administration, Nainital (ATI)
• CEPT Research & Development Foundation
• Feedback Foundation Charitable Trust
• Goa Waste Management Corporation
• Hasiru Dala
• Himalayan Institute for Environment, Ecology & Development (HIFEED)
• IORA Ecological Trust
• Mahatma Gandhi State Institute of Public Administration
• National Institute of Urban Management
• Regional Centre for Urban and Environmental Studies (RCUES)– All India Institute of Local Self Government, Mumbai
• Regional Centre for Urban and Environmental Studies (RCUES), Lucknow
• Saahas
• Shriram Institute for Industrial Research
• Skill Council for Green Jobs
• Consortium of TERI School of Advanced Studies and Indian Pollution Control Association
• TNIUS
• University of Science and Technology Meghalaya
• Urban Management Centre (UMC)
• Water Sanitation and Hygiene Institute (WASHi)
Note: Not all SKPs can deliver training programs in all subjects, states should do their due diligence in selecting SPKs. And hire agencies based on their areas of expertise.
Financing & operating models
1What is the cost-sharing pattern between Centre, States, and ULBs for used water management?
The cost-sharing pattern for used water management under SBM-U 2.0 varies based on the category of the state:
1) For Union Territories (UTs without legislature): 100% funded by the Central Government.
2) For UTs with legislature: 100% Central funding for UT share, with additional contributions from ULBs if required.
3) For North-Eastern and Himalayan States: 90% by the Centre and 10% by the State/Urban Local Bodies (ULBs).
4) For Other States: 50% by the Centre, 30% by the State, and 20% by ULBs or other sources.
1) For Union Territories (UTs without legislature): 100% funded by the Central Government.
2) For UTs with legislature: 100% Central funding for UT share, with additional contributions from ULBs if required.
3) For North-Eastern and Himalayan States: 90% by the Centre and 10% by the State/Urban Local Bodies (ULBs).
4) For Other States: 50% by the Centre, 30% by the State, and 20% by ULBs or other sources.
2What kind of Public-Private Partnership (PPP) models be used for used water management?
PPPs in used water management can help bridge the financing gap, improve efficiency, and ensure sustainable water reuse. Different PPP models vary in terms of risk sharing, financing and operational control. The key feasible models include:
1) Build-Operate-Transfer (BOT): The private sector builds the treatment infrastructure, operates it for a fixed period, and later transfers ownership to the Government.
2) Design-Build-Operate (DBO): The private partner is responsible for the design, construction, and operation of the facility for a pre-defined period, while the ownership remains with the government.
3) Performance-based contracts: The private player is paid based on performance indicators like effluent quality, cost savings, or plant efficiency.
4) Hybrid Annuity Model: The government provides an upfront payment (e.g., 40%) during the construction phase, while the private partner raises the remaining funds and is paid back over time via annuities.
There can be other models like service contracts where Government contracts a private firm for specific services like O&M. The private entity can also lease an existing treatment facility to operate and earn revenue from user fees.
1) Build-Operate-Transfer (BOT): The private sector builds the treatment infrastructure, operates it for a fixed period, and later transfers ownership to the Government.
2) Design-Build-Operate (DBO): The private partner is responsible for the design, construction, and operation of the facility for a pre-defined period, while the ownership remains with the government.
3) Performance-based contracts: The private player is paid based on performance indicators like effluent quality, cost savings, or plant efficiency.
4) Hybrid Annuity Model: The government provides an upfront payment (e.g., 40%) during the construction phase, while the private partner raises the remaining funds and is paid back over time via annuities.
There can be other models like service contracts where Government contracts a private firm for specific services like O&M. The private entity can also lease an existing treatment facility to operate and earn revenue from user fees.
3How are funds released for used water management projects?
The new fund release model, SNA-SPARSH, has been introduced to ensure Just-in-Time funding for projects, including UWM. Under this model, funds are released in real-time through an integrated system involving PFMS, State IFMIS, and RBI’s e-Kuber platform. This eliminates delays, prevents fund parking, and ensures efficient cash management
Procedure for Fund Release
• State Government Designates a Single Nodal Agency (SNA) for each State Linked Scheme (SLS).
• SNA opens dedicated accounts in RBI for the project.
• The Ministry of Government of India releases funds directly into these accounts based on project needs and compliance.
• Payments to vendors/beneficiaries are made through State IFMIS and PFMS, ensuring real-time fund transfer without delays.
Procedure for Fund Release
• State Government Designates a Single Nodal Agency (SNA) for each State Linked Scheme (SLS).
• SNA opens dedicated accounts in RBI for the project.
• The Ministry of Government of India releases funds directly into these accounts based on project needs and compliance.
• Payments to vendors/beneficiaries are made through State IFMIS and PFMS, ensuring real-time fund transfer without delays.
4Is there any financial reporting required for Used water management projects?
Yes, financial reporting is required for Used Water Management projects under the SNA-SPARSH model. Expenditures are monitored through PFMS and State IFMIS to ensure transparency. Regular audits and reconciliations are conducted to track utilization and prevent fund mismanagement.
5What happens if funds are underutilized or expenditure goes beyond the sanctioned amount?
If funds are underutilized in a particular ULB after the cost has been approved during the CSAP process, the remaining amount can be reallocated to another ULB where it is needed. This ensures that while the total approved cost remains unchanged, any unspent funds are effectively utilized for other projects within the scheme, maintaining a balanced fund distribution.
On the other hand, if the expenditure for projects in a ULB is going beyond the allocated funds, additional funding will require approval from the Ministry with a justification.
6Can states re-allocate funds from other SBM components to used water management projects?
Yes, states can re-allocate funds from other SBM components to used water management projects. However, it is essential that the component for which the funds were originally allocated, is fully saturated. For example, if a state no longer requires funding for Solid Waste Management (SWM) components or if a certain ULB has already met their SWM funding needs, the remaining funds can be utilized for used water management (UWM) projects. Decision should be endorsed by High Powered Committee.
7How can states leverage additional funds apart from SBM-U 2.0?
States can leverage additional funds apart from SBM-U 2.0 through various sources. The 15th Finance Commission grants and the Urban Infrastructure Development Fund (UIDF) offer crucial financial support for urban sanitation infrastructure, helping bridge funding gaps and enhance coverage of Used water management projects. Other sources of funds like loans and grants from international agencies, municipal bonds (including green bonds), CSR and philanthropic contributions can also be considered.
8Can funds also be utilized for personal protective equipment (PPE) kits, sewer cleaning machines, and other facilities related to Safai Mitra Suraksha?
Funds allocated to states should be first utilised to fill the gaps in used water management in all the ULBs. If any funds remain after fulfilling these primary requirements, they can be utilized for procuring PPE. In case of sewer cleaning machines, a ULB should already have a sewer system in place in order to request funds for sewer cleaning machines.
9Can the central share of funds under SBM-U 2.0 be used for developing Faecal Sludge Treatment Plants (FSTPs)?
It is strongly recommended to adopt a holistic used water management approach, such as setting up Sewage Treatment Plants (STPs) with co-treatment facilities. This ensures the treatment of both septage and used water, aligning with the goal of comprehensive used water collection and treatment to prevent environmental pollution.
But if States feel that FSTPs are suitable solution for some ULBs (especially where effluent of septic tank is infiltrated into ground without polluting ground water and grey water flowing in drains is minimal), they can propose the same, as an interim solution, for funding. It is to be noted that the ULBs where FSTP is being proposed, grey water flowing through the drains needs to be tapped via I&D and treated as well.
10What components are eligible for funding for interception and diversion of drains?
Under Swachh Bharat Mission - Urban 2.0 (SBM-U 2.0), the following components required for the interception and diversion (I&D) of drains are eligible for funding:
1) Pumping stations
2) Screens (for debris and solid waste removal)
3) Gates (sluice gates, flap gates, etc.)
4) Civil infrastructure costs, including:
_Construction of weirs
_ Pipelines/Open channels for diverting used water to treatment facilities
These components are covered to ensure effective used water management and prevent untreated sewage from flowing into environment.
1) Pumping stations
2) Screens (for debris and solid waste removal)
3) Gates (sluice gates, flap gates, etc.)
4) Civil infrastructure costs, including:
_Construction of weirs
_ Pipelines/Open channels for diverting used water to treatment facilities
These components are covered to ensure effective used water management and prevent untreated sewage from flowing into environment.
11Can the SBM-U 2.0 funding be used for sewer network laying or expansion?
No, the Swachh Bharat Mission - Urban 2.0 (SBM-U 2.0) funding cannot be used for laying or expanding the sewer network. States must arrange funds for this through their own resources or other financial sources.
However an I&D arrangement which can be used as trunk sewer at a later stage can be funded under SBM (provided the cost of I&D structure doesn’t exceed 15% of the cost of laying sewers across the town).
However an I&D arrangement which can be used as trunk sewer at a later stage can be funded under SBM (provided the cost of I&D structure doesn’t exceed 15% of the cost of laying sewers across the town).
12Can the cost of House Service Connections (HSC) be funded through SBM-U 2.0?
No, the cost of House Service Connections (HSC) is not covered under Swachh Bharat Mission - Urban 2.0 (SBM-U 2.0). States must bear this cost using their own resources or other financial sources.