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Wastewater Recycling Policies & The Circular Economy: Unlocking the Potential of Treated Water Reuse

Water scarcity and pollution are growing threats to India’s cities and industries. Traditional water and waste treatment companies focus on supplying fresh water and disposing of effluent, but this linear model is unsustainable. A circular economy approach treats wastewater as a resource to be recycled and reused. With effective policies and technologies, cities can close the loop – cutting freshwater demand, reducing pollution and creating new value streams.

Why Reuse Wastewater?

In many urban areas, treated sewage water is still seen as waste. Yet modern treatment technologies produce high‑quality effluent that is safe for non‑potable uses. Reusing this water offers several benefits:

  • Conserving freshwater – Every litre of reused wastewater means one less litre extracted from rivers or aquifers.
  • Supporting industry – Industries such as power plants, manufacturing and cooling towers can substitute reclaimed water for freshwater, reducing operational risk in water‑stressed regions.
  • Greening cities – Treated wastewater irrigates parks, golf courses and landscaped medians, enhancing urban greenery.
  • Groundwater recharge – Controlled recharge with treated water restores aquifers depleted by over‑extraction and supports sustainable yields.
  • Reducing pollution – When effluent is reused, less wastewater is discharged into rivers, reducing nutrient loads and protecting ecosystems.

An example of successful reuse comes from Bengaluru, where tertiary treatment plants supply about 85 million litres of treated water per day for industrial use

Policy Landscape in India

The momentum for wastewater recycling is growing, supported by a mix of national missions, guidelines and judicial orders. Key drivers include:

  • AMRUT 2.0 and Swachh Bharat Mission (Urban) – These programmes fund sewage infrastructure and set targets for recycling treated effluent. Many projects now require at least 20 percent of treated water to be reused.
  • Jal Jeevan Mission (Urban) – Focuses on 24×7 water supply and mandates adequate wastewater recycling capacity in newly built systems.
  • National Mission for Clean Ganga (Namami Gange) – Emphasises zero discharge into the Ganga and encourages reuse for agriculture and industry.
  • National Green Tribunal (NGT) Orders – Courts have directed municipal bodies to reuse treated wastewater, enforce standards and penalise polluters.
  • State policies – Several states (Gujarat, Tamil Nadu, Karnataka) have adopted comprehensive treated wastewater reuse policies, outlining quality standards and incentives for industrial uptake.

These policies create a market for reclaimed water and encourage investment in advanced wastewater treatment solutions.

Linking Reuse to the Circular Economy

A circular water economy goes beyond recycling; it integrates water with energy, nutrients and materials recovery. Wastewater recycling can unlock value in several ways:

  • Nutrient recovery – Treated effluent retains nitrogen and phosphorus. When used for landscaping or agriculture, it reduces the need for synthetic fertilisers. Organic solids can be composted to produce soil conditioners.
  • Energy production – Anaerobic digestion of sewage sludge yields biogas. Some C‑Tech facilities capture this energy, generating power and reducing greenhouse gas emissions.
  • Co‑treatment of organic waste – Integrating solid waste and wastewater management – such as co‑digestion of kitchen waste with sewage sludge – produces more biogas and compost.
  • Industrial symbiosis – Industries located near STPs can contract to use reclaimed water, turning an environmental liability into a business opportunity.

The Role of C‑Tech in Enabling Reuse

For wastewater to be reused safely, the effluent must meet quality standards for its intended application. C‑Tech excels in delivering high‑quality, consistent effluent thanks to its advanced sequencing batch reactor design. The system integrates primary, secondary and tertiary treatment, achieving exceptional pollutant removal efficiencies (around 98 %). Parameters such as BOD, COD, total suspended solids, ammoniacal nitrogen and total phosphorus are drastically reduced, surpassing conventional technologies

C‑Tech plants are fully automated and modular. Automation ensures stable operation, while modularity allows cities and industries to scale capacity easily. The compact footprint saves land, and optimised aeration results in lower energy consumption. As a result, municipalities can install C‑Tech systems close to areas of demand – reducing the need for long pipelines and making reclaimed water distribution economically viable.

Driving Adoption: Challenges and Opportunities

Despite supportive policies, large‑scale reuse of treated wastewater faces challenges:

  1. Public perception – Many people still view reclaimed water as unsafe. Awareness campaigns and transparent water quality reporting can build trust.
  2. Distribution infrastructure – Reuse requires dual plumbing or dedicated pipelines to deliver treated water to industries and green spaces. Infrastructure planning must integrate these networks from the outset.
  3. Cost recovery – Pricing reclaimed water competitively while covering operational costs needs careful structuring. Incentives and volumetric tariffs can help create a sustainable market.
  4. Quality monitoring – Continuous monitoring and certification of effluent are essential to assure users and regulators.

Opportunities abound for municipal solid waste treatment plants, developers and industrial clusters willing to embrace the circular model. By coupling C‑Tech with renewable energy and nutrient recovery, cities can transform STPs into resource recovery facilities.

Conclusion: Toward a Water‑Wise Future

Achieving water security in India requires more than building new wastewater treatment plants. It demands a shift in mindset – from waste disposal to resource recovery. With the right blend of policy and technology, treated wastewater can irrigate parks, feed industries and recharge groundwater, easing the pressure on dwindling freshwater supplies. C‑Tech provides the high‑quality effluent and operational efficiency needed to make reuse economically and environmentally viable.

By investing in wastewater recycling today, municipalities and industries not only reduce pollution but also create a resilient future where every drop is valued. As SFC continues to innovate, the promise of a circular water economy comes closer to reality.

DISCLAIMER – IMPORTANT

THESE MATERIALS ARE NOT DIRECTED AT OR INTENDED TO BE ACCESSED BY PERSONS LOCATED OUTSIDE INDIA. THESE MATERIALS ARE BEING MADE AVAILABLE ON THIS WEBSITE TO COMPLY WITH THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2018, AS AMENDED.

IMPORTANT: You must read and agree with the terms and conditions of the following disclaimer before continuing.

The following disclaimer applies to the draft red herring prospectus of SFC Environmental Technologies Limited (the “Company”) dated August 25, 2025 (the “DRHP”) filed with the Securities and Exchange Board of India (“SEBI”) and BSE Limited and National Stock Exchange of India Limited (“Stock Exchanges”) and hosted on this website in connection with the initial public offering of the equity shares of the Company (the “Offer”). You are advised to read the following notice carefully before accessing or making any other use of the DRHP. By accessing the DRHP, you agree to be bound by the following terms and conditions, including any modifications to them from time to time.

The DRHP is directed at, and is intended for distribution to, and use by, residents of India only. The information in this portion of our website, including the DRHP, is not for publication or distribution, directly or indirectly, in or into the United States. No part of the contents of the DRHP shall be copied or duplicated in any form by any means or redistributed.

The DRHP has been hosted on this website as prescribed under Regulation 26(4) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”). You are reminded that documents transmitted in electronic form may be altered or changed during the process of transmission and consequently, neither the Company nor any of its affiliates accepts any liability or responsibility whatsoever in respect of alterations or changes which have taken place during the course of transmission of electronic data.

The DRHP does not constitute an offer to sell or an invitation to subscribe to the securities offered in any jurisdiction to any person to whom it is unlawful to make an offer or invitation in such jurisdiction and is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where (a) distribution or use of such information would be contrary to law or regulation; or (b) the Company or any of its affiliates would by virtue of such distribution become subject to new or additional registration, licensing or other regulatory requirements. The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in offshore transactions in reliance on Regulation S and applicable laws of the jurisdictions where such offers and sales are made. There will be no public offering of the Equity Shares in the United States.

Any person into whose possession the DRHP comes is required to inform himself or herself about and to observe any such restrictions. Neither the Company nor any of its affiliates is soliciting any action based on the DRHP, and it should not be construed as an offer to sell or the solicitation of an offer to buy any securities. Potential investors should not rely on the DRHP for any investment decision.

Any decision on whether to invest in the equity shares described in the DRHP may only be made after a red herring prospectus has been filed with the Registrar of Companies, Maharashtra at Mumbai and the SEBI and must be made solely on the basis of such red herring prospectus, as there may be material changes in the red herring prospectus compared to the DRHP. Invitations to subscribe to or purchase the equity shares in the Offer will be made only pursuant to the red herring prospectus if the recipient is in India or the preliminary offering memorandum for the Offer, which comprises the red herring prospectus and the preliminary international wrap for the Offer, if the recipient is outside India. No person outside India is eligible to Bid for equity shares in the Offer unless that person has received the preliminary offering memorandum for the Offer, which shall contain the selling restrictions for the Offer outside India.

Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see the section titled “Risk Factors” of the red herring prospectus, when available.

Neither the Company nor any of its affiliates will be responsible for any loss or damage that could result from interception and interpretation by any third parties of any information being made available to you through this website. The Company and its affiliates cannot and do not guarantee the accuracy, timeliness or completeness of the information being made available to you in the DRHP beyond the date of the DRHP. The information contained in the DRHP may not be updated since its original publication date and may not reflect the latest updates. The Company and its affiliates will not be responsible for any loss to any person or entity caused by any shortcoming, defect or inaccuracy which may have inadvertently or otherwise crept into the website. Neither the Company, any of its affiliates nor their directors, officers and employees will be liable or have any responsibility of any kind for any loss or damage that you incur in the event of any failure or disruption of this website, or resulting from the act or omission of any other party involved in making this website or the data contained therein available to you, or from any other cause relating to your access to, inability to access, or use of the website or these materials.

If you are not permitted to view the materials on this website or are in any doubt as to whether you are permitted to view these materials, please exit this webpage. To access this information, you must confirm by pressing on the button marked “I Confirm” that, at the time of access you are located and resident in India. If you cannot make this confirmation, you must press the button marked “I Do Not Confirm”.

The documentation contained in these pages is posted solely to comply with Indian legal and regulatory requirements. Making the information contained herein available in electronic format does not constitute an offer to sell, the solicitation of an offer to buy, or a recommendation to buy or sell securities of the Company in the United States or in any other jurisdiction, including without limitation, India.

DISCLAIMER – IMPORTANT

To access this information, you must confirm, by pressing on the button marked “I Confirm”, that at the time of access, you are located and resident in India. If you cannot make this confirmation, you must press the button marked “I Do Not Confirm”.

The documentation contained in these pages is posted solely to comply with Indian legal and regulatory requirements. Making the information contained herein available in electronic format does not constitute an offer to sell, the solicitation of an offer to buy, or a recommendation to buy or sell securities of the Company in the United States or in any other jurisdiction, including without limitation, India.

DISCLAIMER – IMPORTANT

To access this information, you must confirm, by pressing on the button marked “I Confirm”, that at the time of access, you are located and resident in India. If you cannot make this confirmation, you must press the button marked “I Do Not Confirm”.

The documentation contained in these pages is posted solely to comply with Indian legal and regulatory requirements. Making the information contained herein available in electronic format does not constitute an offer to sell, the solicitation of an offer to buy, or a recommendation to buy or sell securities of the Company in the United States or in any other jurisdiction, including without limitation, India.

DISCLAIMER – IMPORTANT

THESE MATERIALS ARE NOT DIRECTED AT OR INTENDED TO BE ACCESSED BY PERSONS LOCATED OUTSIDE INDIA. THESE MATERIALS ARE BEING MADE AVAILABLE ON THIS WEBSITE TO COMPLY WITH THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2018, AS AMENDED. IMPORTANT: You must read and agree with the terms and conditions of the following disclaimer before continuing. The following disclaimer applies to the draft red herring prospectus of SFC Environmental Technologies Limited (the “Company”) dated August 25, 2025 (the “DRHP”) filed with the Securities and Exchange Board of India (“SEBI”) and BSE Limited and National Stock Exchange of India Limited (“Stock Exchanges”) and hosted on this website in connection with the initial public offering of the equity shares of the Company (the “Offer”). You are advised to read the following notice carefully before accessing or making any other use of the DRHP. By accessing the DRHP, you agree to be bound by the following terms and conditions, including any modifications to them from time to time. The DRHP is directed at, and is intended for distribution to, and use by, residents of India only. The information in this portion of our website, including the DRHP, is not for publication or distribution, directly or indirectly, in or into the United States. No part of the contents of the DRHP shall be copied or duplicated in any form by any means or redistributed. The DRHP has been hosted on this website as prescribed under Regulation 26(4) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”). You are reminded that documents transmitted in electronic form may be altered or changed during the process of transmission and consequently, neither the Company nor any of its affiliates accepts any liability or responsibility whatsoever in respect of alterations or changes which have taken place during the course of transmission of electronic data. The DRHP does not constitute an offer to sell or an invitation to subscribe to the securities offered in any jurisdiction to any person to whom it is unlawful to make an offer or invitation in such jurisdiction and is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where (a) distribution or use of such information would be contrary to law or regulation; or (b) the Company or any of its affiliates would by virtue of such distribution become subject to new or additional registration, licensing or other regulatory requirements. The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in offshore transactions in reliance on Regulation S and applicable laws of the jurisdictions where such offers and sales are made. There will be no public offering of the Equity Shares in the United States. Any person into whose possession the DRHP comes is required to inform himself or herself about and to observe any such restrictions. Neither the Company nor any of its affiliates is soliciting any action based on the DRHP, and it should not be construed as an offer to sell or the solicitation of an offer to buy any securities. Potential investors should not rely on the DRHP for any investment decision. Any decision on whether to invest in the equity shares described in the DRHP may only be made after a red herring prospectus has been filed with the Registrar of Companies, Maharashtra at Mumbai and the SEBI and must be made solely on the basis of such red herring prospectus, as there may be material changes in the red herring prospectus compared to the DRHP. Invitations to subscribe to or purchase the equity shares in the Offer will be made only pursuant to the red herring prospectus if the recipient is in India or the preliminary offering memorandum for the Offer, which comprises the red herring prospectus and the preliminary international wrap for the Offer, if the recipient is outside India. No person outside India is eligible to Bid for equity shares in the Offer unless that person has received the preliminary offering memorandum for the Offer, which shall contain the selling restrictions for the Offer outside India. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see the section titled “Risk Factors” of the red herring prospectus, when available. Neither the Company nor any of its affiliates will be responsible for any loss or damage that could result from interception and interpretation by any third parties of any information being made available to you through this website. The Company and its affiliates cannot and do not guarantee the accuracy, timeliness or completeness of the information being made available to you in the DRHP beyond the date of the DRHP. The information contained in the DRHP may not be updated since its original publication date and may not reflect the latest updates. The Company and its affiliates will not be responsible for any loss to any person or entity caused by any shortcoming, defect or inaccuracy which may have inadvertently or otherwise crept into the website. Neither the Company, any of its affiliates nor their directors, officers and employees will be liable or have any responsibility of any kind for any loss or damage that you incur in the event of any failure or disruption of this website, or resulting from the act or omission of any other party involved in making this website or the data contained therein available to you, or from any other cause relating to your access to, inability to access, or use of the website or these materials. If you are not permitted to view the materials on this website or are in any doubt as to whether you are permitted to view these materials, please exit this webpage. To access this information, you must confirm by pressing on the button marked “I Confirm” that, at the time of access you are located and resident in India. If you cannot make this confirmation, you must press the button marked “I Do Not Confirm”. The documentation contained in these pages is posted solely to comply with Indian legal and regulatory requirements. Making the information contained herein available in electronic format does not constitute an offer to sell, the solicitation of an offer to buy, or a recommendation to buy or sell securities of the Company in the United States or in any other jurisdiction, including without limitation, India.

Vision

Empowering a sustainable world through innovative solutions, SFC envisions a future where environmental responsibility and cutting-edge technology harmoniously coexist, creating a cleaner and more prosperous planet for all.