THEBUSINESSBYTES BUREAU

BHUBANESWAR, APRIL 28, 2026

In a major step towards water sustainability and the promotion of a circular urban economy, the Odisha Government has notified the Policy on Reuse of Treated Used Water (TUW) of Urban Odisha, 2026.

The policy lays out a comprehensive roadmap to transform treated used water from a waste by-product into a valuable resource, addressing the growing seasonal and spatial water stress across urban centres in the state.

Under the policy, Odisha has set ambitious, time-bound targets, including achieving 100 per cent collection, conveyance and treatment of used water across all Urban Local Bodies (ULBs) by 2030. It also aims to ensure at least 20 per cent reuse of treated water by 2030, scaling up to a minimum of 50 per cent by 2036.

Currently, Odisha generates around 1,104 million litres per day (MLD) of used water, of which only about 190 MLD is treated. The new policy seeks to bridge this gap by mandating universal treatment and ensuring compliance with prescribed safety standards for non-potable applications.

The policy encourages the use of treated water across a wide range of sectors to reduce dependence on freshwater sources. These include municipal and institutional applications such as road cleaning, firefighting, sanitation, gardening and HVAC systems; industrial uses including power plants, boiler feed, cooling and construction; as well as agricultural and environmental purposes like irrigation, wetland management and rejuvenation of urban water bodies.

To accelerate adoption, the government has introduced an innovative TUW tariff model, ensuring that treated water remains more affordable than potable water. The policy also offers a range of incentives, including water credits for farmers, tariff rebates and Viability Gap Funding (VGF) support for industries, and rebates for residential societies using treated water for flushing and landscaping. Performance-linked incentives and disincentives have also been incorporated to ensure effective implementation.

A robust multi-tier governance framework has been established, with the State High Powered Committee (SHPC) serving as the apex body for policy and pricing decisions. It will be supported by the State Level Technical Committee (SLTC) and a dedicated Treated Used Water Cell. District Coordination Committees will oversee local implementation and demand aggregation.

The Housing & Urban Development Department will regulate standards and implementation, while agencies such as OWSSB, WATCO and PHEO will be responsible for infrastructure creation and operations. The Odisha Urban Academy (OUA) will spearhead capacity building, research and knowledge dissemination.

The policy further mandates that cities with existing sewerage systems and sewage treatment plants must achieve at least 20 per cent reuse within six months of the notification. In cities where such infrastructure is under development, the target will become applicable within six months of commissioning.

Aligned with the National Framework on Safe Reuse of Treated Water (2023) and the objectives of AMRUT 2.0, the policy positions Odisha at the forefront of sustainable urban water management and environmental stewardship in India.