The project would intend to improve the efficiency of water usage in agriculture, industrial water and its reuse and urban water projects, and decentralised distribution for rural areas by financing small water treatment plants. The likely investment is planned to take place over the period of next two to three years.
Besides the three focused areas of concern, the project is also designed to provide advisory services including preparation of bidding documents for projects, providing solutions for water issues such as leakage and illegal connections
Commenting on the development, IFC's South Asia head for water, Bastiaan Mohrmann, said, “To sustain its robust economic growth, India needs to address its growing water challenges, and the private sector has an important role. Over the next two to three years, we expect a significant increase in private-sector water investments in India."
Further, as per the plans of IFC, the funding of the project would be done through offering financing for public-private partnership (PPP) projects in these areas. However, there are further expectations of the lending arm to opt for the equity stake in such projects.