India is a nation of over 1.3 billion people. And India’s cities and towns generate around 72,368 million litres of sewage every day. However, our sewage treatment infrastructure can handle only about 37% of this volume, and, in reality, only 28% of this wastewater is actually treated.
Existing sewage treatment plants (STPs) often struggle to function efficiently, especially during monsoons, power outages, or when dealing with industrial effluents containing heavy metals and pharmaceutical residues, according to experts and various reports.
The consequence? More than half of India’s rivers are now highly polluted, with many others falling below modern safety standards. A 2018 study by the Central Pollution Control Board (CPCB) found that 13% of 351 river stretches across 323 rivers were severely polluted, while 17% were moderately polluted. The CPCB identified domestic sewage from urban areas as the single largest contributor to the contamination of India’s water bodies.
The scale of the gap and funding + policy push
Considering that India has only 1/3rd treatment capacity versus wastewater generated, and even less than that is actually treated, nearly two-thirds of sewage remains untreated (or under-treated), discharging into water bodies, polluting rivers, or relying on under-engineered solutions. Adding more STPs, FSTPs (Faecal Sludge Treatment Plants), CETPS (Common Effluent Treatment Plants) and pumping stations is the need of the hour.
To bridge this gap, the Indian government is channeling large allocated funds and multiple schemes:
- Ministry of Jal Shakti: The FY 25-26 has a budget estimate of ₹99,503 crore, of which a substantial share is allocated to Jal Jeevan Mission (Rural)
- Ministry of Housing & Urban Affairs (MoHUA): For 2025-26, a budget of ₹96,777 crore. Key programs include AMRUT 2.0 and SBM-Urban, which fund STPs, sewerage networks, FSTPs, etc.
- AMRUT 2.0 (central pot): ₹66,750 crore is being distributed to states/UTs using a formula for the entire mission period (from financial year 2021-22 to 2025-26)
- Namami Gange/National Mission for Clean Ganga: The National Ganga Plan (central scheme) has a financial outlay of ₹3,400 crore for FY 2025-26.
These schemes funnel capital into EPC STPs, sewerage networks, fecal sludge & septage management (FSSM), and wastewater reuse systems.
Why wastewater treatment companies stand to gain
India’s wastewater sector offers steady opportunities for capable players because of five main factors:
- Demand far exceeds supply: Most cities treat only a fraction of their sewage, so there’s a constant need to build more treatment plants, pumping stations, sewer networks, and reuse systems. This ensures a steady flow of new projects.
- Multiple funding streams: Several government programs — like AMRUT 2.0, Swachh Bharat Mission, Jal Jeevan Mission, and Namami Gange — provide money for wastewater and sanitation projects. States and city bodies also contribute funds.
- Longer contracts with recurring income: Many new tenders now combine construction (EPC) with long-term operation and maintenance (O&M) or hybrid-annuity models. This gives companies stable, predictable revenue over many years.
- Continuous project pipeline: New tenders and upgrades may keep coming in as cities expand or replace older systems, so there will likely be steady activity in the bidding pipeline.
- Supportive regulations and public pressure: Tighter pollution norms and a growing demand by the public for cleaner water bodies may lead to sustained investment in wastewater treatment infrastructure.
EMS Ltd: Helping close the gap
India’s towns and cities need far more sewage treatment capacity, and that gap is creating years of project work for builders and operators. EMS Ltd is a smallcap, mid-tier, EPC (Engineering, Procurement, and Construction) that specialises in executing water supply and sewerage infrastructure projects, water treatment plants, sewage treatment plants, reservoirs, pump houses etc. It also handles associated O&M, and is therefore positioned to benefit if it continues to win government contracts and ensure smooth execution. Their business lines cover a number of bases:
- Municipal EPC: Design-build contracts for STPs (sewage treatment plants), trunk sewers, pumping stations, pipelines and allied civil works.
- O&M: Many contracts include multi-year O&M (operation & maintenance) which converts part of revenue into recurring, higher-visibility cash flows.
- Infrastructure ancillary works: The company also deals in related civil/electrical works in transport or logistics projects, in addition to the core water business.
- The company’s recent notable projects indicate it is well-positioned to cater to the needs of India’s water treatment needs.
- Order book: EMS has a multi-hundred-crore unexecuted order book. According to the company’s Q4FY25 earnings call, the backlog runs into around 2236 crore of unexecuted work, which translated into a buffer for near-term revenue.
- UP sewerage contracts: EMS secured ₹184–₹203 crore of water & sewerage projects in Uttar Pradesh, by the UP Jal Nigam. The company announced that it has emerged as the lowest bidder (L1) for a ₹104.05 crore project under the Agra Water Supply Reorganisation Scheme (Trans Yamuna Zone I & II). The scope of work includes surveying, soil investigation, engineering, design, and the supply of all materials, labour, tools, and equipment required for the construction, completion, testing, and commissioning of an intake well-cum-pump house, approach bridge, and water treatment plant in Agra.
- Adi Ganga Kolkata pollution abatement contract: Earlier this year, in June 2025, EMS (along with a JV partner) bagged a large river-rejuvenation/pollution abatement contract for the Adi Ganga in Kolkata — a substantial project with a reported value of ₹782 crore, with EMS’s holding a 74% share.The project will follow a design-and-build (DB) model, covering both design and execution, with a planned implementation period of 36 months. After completion, EMS will also be responsible for operating and maintaining the facilities for 15 years.
Why EMS is worth keeping an eye on
EMS may not be the largest national water infrastructure company, but it is a well-positioned mid-tier EPC player with a backlog of projects large enough to matter for revenue visibility, and a business model aligned with the government-funded wave of STP/sewerage/river-cleaning projects.
The usual EPC sector caveats (like payment delays, start-up timing, plant utilisation) apply, but, if EMS continues to execute existing contracts, win more O&M heavy contracts, and manage working capital well, it is a company worth tracking among India’s next-tier water infrastructure names.
Sources
Bridging the gap: Unlocking the potential of treated wastewater in India’s water crisis
Why India Needs To Urgently Rehaul Sewage Treatment Plans
EMS Earnings Call Q4 FY2024-25