Bhubaneswar: The Odisha government has notified the Odisha Urban Treated Wastewater Reuse Policy, 2026, marking a significant step towards water sustainability and the promotion of a circular economy in urban development.
The policy aims to treat wastewater not as waste but as a valuable resource, while also addressing rising urban water stress across the state.
Under the policy framework, the state has set a clear timeline for achieving comprehensive wastewater management. By 2030, Odisha plans to ensure 100% collection, conveyance, and treatment of wastewater across all urban local bodies, along with the reuse of at least 20% of treated wastewater. By 2036, the state aims to increase the reuse level to at least 50% of treated wastewater.
At present, Odisha generates around 1,104 Million Litres per Day (MLD) of wastewater, while only about 190 MLD is treated, indicating a large treatment gap. The new policy seeks to bridge this gap through mandatory treatment infrastructure and structured reuse systems, along with safe utilisation norms for non-potable applications.
The treated wastewater will be utilised across multiple sectors. It will be used in municipal and institutional services such as street cleaning, firefighting, sanitation, gardening, and HVAC systems. It will also support industrial operations, including power plants, boiler feed systems, cooling processes, and construction activities. In addition, it will be used for irrigation, wetland management, and the restoration of urban water bodies, thereby strengthening environmental sustainability.
To improve adoption and economic viability, the policy introduces a treated wastewater tariff model, under which treated water will be priced lower than potable water. Farmers using this water will receive water credits, while industries will be offered tariff concessions along with viability gap funding support. Residential societies using treated water for flushing and gardening purposes will also be eligible for incentives, encouraging wider community participation.
The policy also establishes a multi-tier governance structure for implementation. A State High-Level Committee will provide overall supervision, while a State Technical Committee and a dedicated Treated Wastewater Cell will support technical planning and execution. At the district level, District Coordination Committees will be responsible for the coordination and monitoring of implementation activities.
The Urban Development Department will function as the regulatory authority for the policy, while infrastructure development and operational responsibilities will be handled by OWSSB, WATCO, and PHEO. The Odisha Urban Academy will play a key role in capacity building, training, and research support to strengthen implementation.
The policy is aligned with the government of India’s National Framework on Safe Reuse of Treated Water (2023) and AMRUT 2.0 mission, reinforcing convergence with national urban water management goals. With this initiative, Odisha aims to emerge as a leading state in sustainable urban water management, wastewater reuse, and environmental conservation.
