US govt institution commits Rs 80-cr loan for drinking water project in India

A development finance institution of the US government has committed a loan of Rs 80 crore to a project aimed at expanding access to affordable clean drinking water to low and middle-income people in India, the American embassy said today.

Overseas Private Investment Corporation's loan to WaterHealth India Pvt Ltd -- a subsidiary of Water Health International Inc of Irvine, California -- will help finance installation of 900 decentralised plants in India.

These plants purify water on site and sell it at a price that is three to four times lower than bottled water alternatives currently available in the marketplace, according to a US Embassy statement.

These WaterHealth Vending Machines (WVMs) are installed at locations such as railway stations, bus stations, shopping malls, public and private institutions or any high footfall location, where consumers are able to purchase purified water weighing in the range between 300 ml to 5 litres.

Most consumers carry their own bottles and WaterHealth refills them, but consumers may also purchase reusable bottles, according to the statement.

This project offers an innovative approach to making safe water more available and affordable and illustrates how businesses can develop new solutions to longstanding global challenges, the statement quoted Ray W Washburne, OPIC president and CEO as saying.

By increasing access to clean water, the project will improve the health and quality of life for millions of Indians, particularly women who typically have the primary responsibility for obtaining and managing the household water supply, Washburne added.

According to the statement, in India alone, an estimated 163 million people lack access to safe water, a major cause of diarrheal illnesses that results in 500 deaths of children under the age of five each day.

In addition to the massive health issues, insufficient affordable water supplies pose a significant economic and overall quality of life cost, particularly for women, it said.

WaterHealth International has been committed to improving access to safe and affordable drinking water for underserved consumers for over a decade.

During that time, we have built the world's lowest cost, global operating platform for decentralised water purification plants, said Sanjay Bhatnagar, CEO of WaterHealth International, according to the statement.

OPIC's loan to WaterHealth was committed under OPIC's new 2X Global Women's Initiative to mobilise 1 billion USD (around Rs 647 crore) to invest in women and unlock the economic opportunity they represent.

In addition to expanding the availability of safe water, the project is projected to create more than 1,300 jobs in India and introduce advanced technologies and business models for providing potable water, the statement said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)