# Presentation: 214591

## Some Environmental Issues & Business Opportunities in Indian IndustryS.Padmanaban, USAIDUS-INDIA BUSINESS SUMMITIndustry Breakout Session – EnvironmentNovember 30, 2006Mumbai

**Notes:**
Sustainable Development is a key issue in India. With the economy growing over 8%, a key issue is to contain the environmental impact of such economic development. Whether it is the unplanned and rapid urbanization of cities –India’s urban population is  over 10% of the world’s urban population and states like Maharashtra and Tamil Nadu have 42.5% and 43.5% of their population living in cities and towns. As a result every city in India is the epitome of urban chaos – lacking in adequate water and sanitation, affordable housing, all weather roads, decent public transport and clean air.
In most cities, at a conservative estimate 25-30% of the waste generated remains uncollected. This works out to several thousand tonnes a day of uncollected waste that make many indian cities open to the worst forms of pollution and disease.

Let me provide you one statistic from the energy front that is quite staggering – from a resource management and environment viewpoint. Power sector example....

Talk about a few key environmnetal issues and the opportunities for business. Before that let me take a moment and describe very briefly USAIDs program on energy and the environment.  

## 1960s/70s:  construction of 15 thermal power plants and several hydro projects.

1980s:  moved on to science and technology development in the eighties.

1990s:  focused on privatization and technology commercialization in the early nineties.

1998:  GHG emissions reductions in the energy sector - main focus since the sanctions. 

Today:  electricity distribution reform, water-energy, methane-to- markets, municipal services

- 1980s:  moved on to science and technology development in the eighties.
- 1990s:  focused on privatization and technology commercialization in the early nineties.
- 1998:  GHG emissions reductions in the energy sector - main focus since the sanctions.
- Today:  electricity distribution reform, water-energy, methane-to- markets, municipal services

**History of USAID/India’s Energy/Environment Programs**

## KEY PROGRAMS IN ENVIRONMENT & ENERGY

**ENERGY EFFICIENCY**
**CLEAN COAL**
**WATER- ENERGY NEXUS**
**POWER DISTRIBUTION **
**DISTRIBUTED GENERATION**
**SUSTAINABLE BUSINESS DEVELOPMENT**

## 1. Industrial & Hazardous Waste Management

**Major issues in India**
**30 million tons of waste generated apart from fly ash (2003 data)**
**8 million tons of hazardous waste **
**Key issues**
**Lack of secure landfills and Treatment, storage and disposal facility (TSDF)**
**Only 11 TSDFs in India**
**Lack of incineration facilities **
**Lack of waste handling and management systems**

**Notes:**
a.All landfills eventually leak – even more so if they are not secure as most of them in the country are.

b. India generates most of its hazardous waste indigenously . Its management and handling is regulated by the Hazardous Waste Mangement Rules... but in blatant violation of these rules, much of this waste is and was being indiscriminately dumped or recycled in makeshift backyard bhattis or furnaces under poor working and environmental conditions.

c. Waste is assuming newer forms. India is one of the fastest growing markets for electronics with over 70% of its population below 35 years. Over 100 million cell phones are in use and expected to treble by 2010. we have 85 million televison sets – more than telephone land lines. 1.6 million computers – about 7 in thousand but this will double in  a few years time. Even if one were to make the argument that that the rate of obsolescence of these electronic `devices is lower than the developed countries – these eventually have to be disposed. What happens to all these hi-tech devices once they are old or dead. They turn to scrap...in india it is estimated that there are 1 million PCs over 7 years old that need to be disposed and the graph is rising very rapidly. The country has no systems in place to ensure such scrap is safely desposed of. Metaphorically speaking these are the ‘plastic bags” of the future, practically unknown just 10 years ago. A single computer contains over 50 highly toxic metals and compounds like lead, mercury, beryllium, brominated flame retardants, PVC coated copper wire...burning PVC coated copper wires releases very high amounts of dioxins and furans and area grave health hazard. Circuit baords are melted in very strong acid to extract the tiny amounts of gold and silver – releasing toxic compounds. Glass of the CRT display is shattered releasing neurotoxinx like lead.  

## Industrial & Hazardous Management

**Opportunities **
**Technical assistance in designing & operation of landfills **
**Technologies for waste minimization and recycling  & related services**

**Hazardous waste disposal industry in the industry sector is worth about $200 million**

**Notes:**
Yes, the country needs TA ...but more lanfills and CETPs will not solve the problem of hazardous wastes...one needs to address the problem at its source. Need to move away from burying and burning to force industry, through stringent regulation, to adopt aggressive, time-bound clean productiuon programs to reduce toxicity and volume of hazardous wastes, phase out chemicals that pose unmanageable environmental risks. We need to move from end of pipe treatment such as landfills and CETPs to interventions that address pollution at the source.

## 2. Cost-Effective Potential for Improving Energy Efficiency of Products in India

##  Energy Efficiency Market Assessment – Industrial SectorInvestment Opportunity: $ 10 billion

|  Industries  | Investments mn Rs  |
| --- | --- |
|  Aluminum  |       1,120.00  |
|  Paper  |       5,565.00  |
|  Cotton & blended yarn  |       2,200.00  |
|  Finished steel  |       7,710.00  |
|  Synthetic yarn  |       1,240.00  |
|  Glass & glassware  |          225.00  |
|  Ceramic tiles  |          190.00  |
|  Cement  |       6,065.00  |
|  Nitrogenous fertilizers  |       2,930.00  |
|  Refinery  |       3,720.00  |
|  Caustic soda  |          630.00  |
|  Sugar  |       3,335.00  |
|  Petro Chemicals  |       4,930.00  |
|  Drugs & pharmaceuticals  |          220.00  |
|  Other Organic Chemicals  |          400.00  |
|  Other Fertilisers  |       1,125.00  |
|  Automobile  |          440.00  |
|  Total, mn Rs  |     42,045.00  |

**L****	****	****M****	****	****H**

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## 3. Utilisation of wastes in cement plants

**Waste utilisation in cement plants in India**
**Almost nil – except fly ash and gypsum**
**US/Japan and European Cement plants **
**Use 80% of waste as fuel **
**450 kg of waste is used as raw material for production of one ton of Cement production in Japan**
**Tremendous potential in India**
**Waste utilization technology **
**Waste processing equipment**
**Key requirement**
**Suitable legislation for waste processing in Cement industry **

**Indian cement plants can absorb 14 million tons of hazardous waste /year**

## 4. Air pollution

**Air pollution **
**Major issue in India**
**Potential opportunities**
**Nox/Sox control systems **
**VOC control technologies in chemical plants and automobile industry**
**Reducing respirable suspended particular matter in several industries**
**General dust control systems**
**Other technologies for gas (H2S, C2S, Acid fumes) emission control**

## 5. Water pollution and treatment

**Non availability of water to industry in India**
**Water pollution**
**Industrial water pollution**
**Only 60% industrial effluents of large & medium scale industries are treated (PCB Data)**
**Municipal water pollution**
**25% water in metro municipalities treated and less than 5% reused**
**Other municipalities and towns very little or no treatment**
**Potential opportunities **
**Water treatment technologies for industries and municipality**
**Membrane technologies / bio reactors **

##  Water pollution and treatment..

**Potential Opportunities..**
**Technologies for recycling of water and zero discharge options in industry / municipality**
**Bio – gas generation through anaerobic treatment of municipal / industrial waste water**
**Technologies for handling membrane waste water**
**Water saving devices and equipment**

## 6.Service Providers for Utility Heat Rate Improvements

** ****EE & R&M in Indian coal-fired utilities**
** ****Private Sector Services to include:**
**- Advanced diagonistics**
**- Energy audit services**
**- Environmental monitoring**
**- Low carbon options**
**- O&M services**
**Funding: Proposed IBRD funding: $ 120 million loan + $ 45 million GEF grant**
**Targeted Capacities for EE&RM: 650 MW**

## 7. Opportunities in Building Sector

**Construction contributing 10% to National GDP  (500 Billion USD)**
**Growth rate 9.2% vis-à-vis 5.5 % Global average**
**Sectors to watch for**
**IT / IT Enabled Services **
**Commercial buildings**
**Infrastructure (Airports, Roads, etc.,)**
**Residential**

## Availability Of Green Materials

**Green materials are not readily available**
**Certified wood**
**Waterless urinals**
**High albedo materials**
**High recycled content materials**
**High performance glass**
**Low VOC materials**
**Testing and certification facilities not Available**
**Eg., Cooling towers, Chillers**

**Solutions sought**
**Incubation of Green Building materials**
**Display in GBC Technology Centre**
**Type testing for equipment**
**Green Building materials Meet**
**Green Building Congress**

**Issues**

**Possible Solution **

## Success Stories in India

**Waterless urinals**
**2001 – Awareness Nil**
**2005 – Three major players (EID Parry, Hindware, Falcon have the major market share)**

## Success Stories in India

**CRI Certified carpets**
**2001 – Awareness nil**
**2005 – Interface, Milliken, Shaw carpets **

## Opportunities

**Materials & Equipment**
**Composting toilets**
**Waterless urinals**
**Low VOC adhesives & sealants**
**CRI certified carpets**
**FSC Certified wood**
**High albedo roofing material**
**BIPV**
**CTI certified cooling towers**
**Living machines, etc.,.**

**New Services **
**III Party Commissioning**
**Energy simulation**
**LEED Facilitation services**
**LEED-India *****(to be launched shortly)***

**Green building products – 350 Million USD by 2012**

## Energy Efficiency in the Indian Cement Industry

**Energy Efficiency ****in the Indian Cement Industry**

- Wide range in energy intensity in Indian cement industry
-  Some of the most efficient plants in the world are in India
- - Only 5% are inefficient wet kilns (vs. 18% in the U.S.)
-  Energy savings and emission reduction possible through:
- Improved energy efficiency
- Increased blending of cement
- Use of alternative fuels
- Waste heat power generation

- _Source:_ Sathaye et al. (2005)

**THANK YOU**