http://www.iaeme.com/IJARET/index.asp 37 editor@iaeme.com International Journal of Advanced Research in Engineering and Technology (IJARET) Volume 7, Issue 6, November-December 2016, pp. 37–44, Article ID: IJARET_07_06_005 Available online at http://www.iaeme.com/IJARET/issues.asp?JType=IJARET&VType=7&IType=6 ISSN Print: 0976-6480 and ISSN Online: 0976-6499 © IAEME Publication APPLICABILITY OF GLOBAL WATER QUALITY TRADING PROGRAMS: AN INDIAN SCENARIO H S Shah Department of Chemical Engineering, Institute of Technology, Nirma University, Ahmedabad, India J P Ruparelia Department of Chemical Engineering, Institute of Technology, Nirma University, Ahmedabad, India ABSTRACT The paper attempts to provide a brief analysis of Water Quality Trading (WQT) programs implemented across the globe, with identification of pointers for the success and its potential to be implemented in India. The study is restricted specifically to Common Effluent Treatment Plant (CETP), Vatva Gujarat, because it faces the challenge of non-compliance of Chemical Oxygen Demand (COD) discharge norms at outlet of CETP. The data from CETP collected and analyzed, and it was concluded that implementation of WQT programs will be appropriate option for solving localized problems of water pollution, especially in Vatva, Gujarat. Key words: Water quality trading program, common effluent treatment plant (CETP), COD trading. Cite this article: H S Shah and J P Ruparelia, Applicability of Global Water Quality Trading Programs: An Indian Scenario. International Journal of Advanced Research in Engineering and Technology, 7(6), 2016, pp 37–44. http://www.iaeme.com/IJARET/issues.asp?JType=IJARET&VType=7&IType=6 1. INTRODUCTION Industrial pollution is complex issue in developing countries such as India. Because one side industrial progression is necessary to maintain the economic growth of the country and thus permanent closure to such industries may create additional socio-economic issues. Whereas, the other side abatement of pollution is also not achieved due to techno-commercial competencies of the industries and as a result industries fails to meet the norms of regulatory bodies. Usually, two major mechanisms currently adopted to manage water quality [1], first a direct regulation (or command-and-control mechanisms) and second a market-based instruments MBIs (or incentive-based mechanisms). Command-and-control type policy is predominant and preferred by regulators, however, the way wastewater is being treated is not really efficient and cost-effective [1,2,3]. This lays the foundation for failure of majority of command-and- control mechanisms for wastewater treatment. Few studies have reported both the water quality impacts and cost-effectiveness of WQT or Water Pollution Trading (WPT) markets. The early research by O’Neil [4] and Eheart et al. [5] argued that dynamic trading markets for water pollution control have the potential to achieve higher water quality at lower social cost. Water quality trading has been launched globally to