Niranjan Hiranandani Explains Root Cause of Mumbai Water Curbs, Highlights Group's Water Recycling Practices

Recycling Gap, Not Scarcity, Behind Mumbai's Water Curbs

Dr Niranjan Hiranandani, Managing Director of Hiranandani Group, argues that Mumbai's recurring water crises are not caused by a shortage of water, but the failure to recycle and reuse it efficiently. In a Business Today exclusive interview dated 19 June 2026, he offered a direct assessment of the structural problem underlying the city's current restrictions.

The Monsoon Delay and Immediate Impact

Mumbai has cut water supply to construction sites and reduced industrial usage by 20% as reservoir levels decline amid the city's driest June in more than a decade. With Mumbai's lake storage falling to a critical low of 10.35 per cent amid delays in the monsoon, the Brihanmumbai Municipal Corporation (BMC) has tightened curbs, with the existing 10 per cent citywide water cut set to continue until storage levels improve.

Water supply for ongoing construction sites has been suspended, raising concerns among city developers. The interruptions recur regularly: "This happens every other year," said Dr Niranjan Hiranandani, noting that whenever the monsoon is delayed and a water crisis emerges, construction is affected.

Low Pricing as a Disincentive to Recycling

Hiranandani identifies a less visible cause rooted in municipal pricing policy. "We are now putting up sewage treatment plants, but we have no provision for recycling and reusing the water because water is supplied very cheaply. That is the difficulty we have," Hiranandani said.

He said the cost of the water billed to people is low. Citing examples of several buildings where recycled water is available, at a cost, instead they use the low cost water offered by municipal corporation. This pattern holds across large residential and commercial complexes that could absorb recycling infrastructure investment if pricing incentives aligned.

The Structural Economics

Heavily subsidized municipal water often discourages large residential and commercial complexes from investing in costly wastewater recycling systems, leading to inefficient water use and wastage. The paradox is that recycling capacity exists in many buildings, but economic pressure favours drawing cheap municipal supply.

Mumbai annually receives around 2,000 mm of rainfall and at the rate of water supply of 150 lpcd, the rainwater harvesting potential of the city is around 437,000 million litres annually. The technical and hydrological resources for self-sufficiency exist; deployment at scale does not.

About Hiranandani Group

Hiranandani Group was established in 1978 by Niranjan Hiranandani and Surendra Hiranandani and is based in Mumbai. The group is one of the largest real estate developers in India with projects across Mumbai, Bengaluru, Chennai, and Hyderabad. The group operates across residential, commercial, educational, healthcare, and hospitality segments.