Pollution- An Investment Opportunity?

To the masses busy solving one of the most critical cases our country has ever seen- “India’s Got Latent”, I am so sorry to disturb you guys with a small issue i just came across.

8/10 cities with the worst AQI are from India!

Search “Most polluted water bodies in the World” and boom- Holy Ganga and Yamuna appear.

Over 98% of India’s urban residents live in areas where air quality exceeds WHO’s recommended safe levels.

Air pollution is linked to approximately 1.67 million premature deaths in India every year.

In cities like Delhi,Kolkata and more, PM2.5 levels have been recorded to exceed 300 μg/m3 during peak pollution periods.

Over 70% of India’s rivers are reported to be polluted due to the discharge of untreated sewage, industrial effluents, and agricultural runoff.

Bad right??

While doing so, my citizen and human self felt the concern, but my Investor mind clicked!

I came across a trending stock called VA TECH WABAG LTD. which rose around 6% yesterday!

Curious, I researched about it and found out that it is prominently one the biggest players working on cleaning or treating sewage waters.

Although this is a national hazard, it brings the opportunity of investment as well!

Environmental technology or clean technology (cleantech) sector is maybe one sector that will benefit the most from the hazardous future our country awaits.

With major cities of India estimated to become naturally inhabitable due to hazardous AQI, air purifiers, city air filters and more will become a necessity.

Companies like Diakin Air Condition India Private Limited , Voltas Limited - A TATA Enterprise , Phillips , and more will become major players in battling this phenomenon.

Thermax Limited , VA Tech Wabag Ltd, Ion Exchange (India) Ltd. are few other listed companies working in energy efficiency, waste water treatment, Air pollution and more whose working will increase in coming years.

I feel the Clean Energy sector has a huge potential.

In our StockEdge app, you can get the complete fundamental and technical analysis of all the major companies, top gainers or losers, News, Events and more related to the Environmental Services.

Talking business around this might sound insensitive, but as an investor it is our job to keep a track.

But for things to change, here are 3 steps I think should be taken.

The government should introduce more Tax incentives and subsidies for industries maintaining regulated laws.?

Corporates should monitor performance using quantifiable metrics (e.g., achieving a 90% reduction in particulate emissions or 80% wastewater recovery) and report these results publicly.

And citizens should start being more responsible for their transportation, daily responsibilities and worry a little? less about getting a comedian in Jail as a national issue.?

Bangkok’s Skytrain to reduce vehicular pollution, Beijing’s clean energy policies, China’s actual war on air pollution are few examples of tackling air pollution that we can learn from.

What are your views on this!