Bhubaneswar: The state government Tuesday came up with a new policy with an aim to reuse at least 50 per cent of used water by 2036, when Odisha will complete 100 years of formation.
The Housing and Urban Development (H&UD) Department has notified the Policy on Reuse of Treated Used Water (TUW) of Urban Odisha, 2026.
In a move towards ensuring water sustainability and advancing a circular economy in urban development, the policy provides a comprehensive roadmap to transform used water from a waste by-product into a valuable economic resource, addressing the growing seasonal and spatial water stress across urban centres of the state, said a statement issued by the H&UD department.
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It sets ambitious and time-bound targets, including achieving 100 per cent collection, conveyance, and treatment of used water across all Urban Local Bodies (ULBs) by 2030, ensuring at least 20 per cent reuse of treated water by the same year, and scaling up reuse to a minimum of 50 per cent by 2036, the department said.
At present, Odisha generates approximately 1,104 MLD (mega litres per day) of used water, of which only about 190 MLD is treated. So, the policy seeks to bridge this gap by mandating treatment and ensuring adherence to prescribed safety standards for non-potable applications, it said.
The policy promotes the use of treated water across multiple sectors to reduce dependence on freshwater sources, including municipal and institutional uses such as road cleaning, firefighting, sanitation, gardening, and HVAC (heating, ventilation, and air conditioning) systems.
The treated water will also be used for industrial applications such as power plants, boiler feed, cooling, construction, agricultural activities, wetland management, and rejuvenation of urban water bodies, the department said.
To drive adoption, the government has introduced an innovative tariff model, ensuring that treated water is priced lower than potable water, alongside incentives such as water credits for farmers, tariff rebates and Viability Gap Funding (VGF) support for industries, and rebates for residential societies using treated water.
The policy mandates that in cities where sewerage systems and sewage treatment plants are already operational, at least 20 per cent reuse must be achieved within six months of notification, while in areas under development, targets will apply within six months of commissioning of the infrastructure.
Aligned with the National Framework on Safe Reuse of Treated Water (2023) and the objectives of AMRUT 2.0, the Policy positions Odisha as a leading state in sustainable urban water management and environmental stewardship.
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