International Finance Corporation to invest $150 million in water management, water treatment projects in India

NEW DELHI: The International Finance Corporation plans to invest about $150 million in water management and water treatment projects in India, a top IFC official said.

The investment, to be done over the next two to three years, would focus on three areas - improving the efficiency of water usage in agriculture, industrial water and its reuse and urban water projects, and decentralised distribution for rural areas by financing small water treatment plants.

"To sustain its robust economic growth, India needs to address its growing water challenges, and the private sector has an important role. Over the next two to three years, we expect a significant increase in private-sector water investments in India," said Bastiaan Mohrmann, IFC's South Asia head for water. The World Bank subsidiary would offer debt financing for public-private partnership ( PPP) projects in these areas and could even pick up equity stakes in them.

It would also offer advisory services. IFC's advisory services would include preparing bidding documents for projects, providing solutions for water issues such as leakage and illegal connections.