Urban growth : According to the report, the country is expected to add approximately 404 million new urban dwellers between now and 2050. This will add higher industrial output + greater energy demand = water stress ?
The per capita availability of water has dropped from 1,816 cubic metres in 2001 to 1,545 cubic metres in 2011.
There are three forces that are propelling the business case for reuse of treated wastewater in India.
First and foremost: Water security.
Secondly : Reuse of treated wastewater is getting strong support from government policy. = River Ganga, a flagship initiative of the ruling government (Clean Ganga Mission).
Finally, by signing the Paris Agreement on climate change in April 2016, India has signalled its concern for the sustainable use of natural resources.
3. WHAT NEEDS TO BE DONE ?
To promote reuse, the central and state governments should jointly issue a national wastewater reuse policy with clear policy targets, setting out the legislative, regulatory and financial measures needed to achieve those targets.
Sound policy and regulatory interventions by the central and state governments are a prerequisite for the launching of innovative reuse projects
In industrial areas where reclaimed water is made available, groundwater extraction has to be strictly regulated by either the water utility or the State Pollution Control Board.
the Ministry of Environment and Ministry of Water Resources should together define quality norms for different grades of industrial water which will help standardise design of reuse systems nationwide
For PPP structures to evolve in this sector, significant government interventions (including the aforementioned) are required to create a favourable environment for private sector participation.
REFERENCE : http://indiacsr.in/wp-content/uploads/2016/09/PwC-report-Closing-the-water-loop-September-2016.pdf
 . Ministry of Water Resources, Press Information Bureau (PIB), http://pib.nic.in/newsite/erelease.aspx?relid=82676