India today faces some of the gravest water challenges in the world. Nearly 25% of the countryÕs population lives in water-scarce areas and 14 of the 20 major river basins in the country are already water-stressed and will move towards extreme water scarcity by 2050. With competition for water likely to become severe, the shared risks around water will only increase. This scenario creates physical, regulatory, and reputational risks for the industry as can be seen in Figure 1. WWF-Indias Water Stewardship program aims to mitigate these risks by promoting basin-level collaborative actions in its priority basins. The Noyyal and Bhavani sub-basins are critical for the water security of the region. Both Bhavani and Noyyal originate from the Western Ghats, one of the global biodiversity hotspots. Apart from being home to unique wildlife, the rivers also support much of the agricultural and industrial economy, which generates about 16% of Tamil Nadu states GDP. Within the basin, the majority of the riverÕs water is used for agricultural irrigation. However, with rapidly growing urban and industrial water usage, there has been a drastic increase in water demand, much of which is being met through inter-basin water transfers from the Bhavani basin into Noyyal The middle Noyyal region, mainly the cities of Tiruppur and Coimbatore, is a major textile and knitwear hub, which is responsible for 90% of total cotton knitwear exports from India.

Within the basin, the textile industry provides employment to over 600,000 people and contributes to exports worth US$ 3 billion. The textile industry plays a significant role in the Indian economy, contributing to 4% of GDP and 35% of gross export earnings. According to recent data, there are about 800 garment factories, 500 registered dyeing units and more than 3,000 finishing units, and an equal number of Micro, Small and Medium-sized Enterprises (MSMEs) targeting the domestic market. In addition, there are many unregistered units that operate from residential buildings and engage in the production supply chain. The growing industrial demand along with the other anthropogenic pressures is affecting the health of this river ecosystem. KEY WATER RISKS AND CHALLENGES Low flows & Groundwater over-exploitation The sub-basin is mostly urban with more than 75% population living in the urban areas. Two main cities, Coimbatore and Tiruppur, house a combined population of about 1,500,000 inhabitants. Both domestic and industrial users depend heavily on the Noyyal River and its traditional tank system for water. With increasing population and industrial growth, the flows in the river have become critically low. The increasing scarcity of water resources is also reflected by the groundwater situation in the basin. Heavy dependence on neighboring basins Low flows and groundwater situation in this basin also means the water users in the region are increasingly dependent on surrounding basins for their water needs. Coimbatore city is almost exclusively dependent on Siruvani and Bhavani Rivers for its water supply, while the textile industry in Tiruppur is drawing water supply from the lower Bhavani and Cauvery rivers. This is not only leading to water scarcity in other basins but also threatening the energy security of the region that depends on hydropower generated by flowing rivers in this region. Urban & Industrial Sewage Several government and non-government studies have also found water in the Noyyal River highly polluted. Urban sewage and industrial effluents are major sources of pollution in the river. While the sewage network in Coimbatore covers only about 23% area of the city, Tiruppur city is mostly devoid of sewage collection and treatment facilities. Both Coimbatore (Engineering, Auto) and Tiruppur (Textile) are major industrial hubs and are sources of major industrial pollution in the river. Risks to the textile industry While industrial pollution has been harmful to people and the environment in the region, it has also emerged as a major risk for the industries themselves. In a landmark verdict of 2011, the Madras high court forced the shutdown of about 700 textile units in Tiruppur for polluting water. While many of the units have since become operational again by implementing pollution abatement measures, there is still a huge regulatory and reputational risk for the textile units and their buyers owing to the water woes of the basin.

While the textile industry has a huge stake in better management of water resources in the region, other users such as communities, other industries, local government, and farmers share many of the water risks and also impact water resources. To address these risks, the industry needs to go beyond internal actions to engage with other stakeholders and promote collaborative actions at the basin level. Any such engagement can go a long way in achieving water sustainability and security for the region.