WABAG signs concession agreement for 40 MLD Recycle and Reuse TTRO plant in Ghaziabad

VA TECH WABAG ('WABAG'), a leading pure-play water technology Indian Multinational Group, has signed through its wholly owned subsidiary M/s. Ghaziabad Water Solutions Private Limited ('SPV'), a concession agreement with Ghaziabad Nagar Nigam ('GNN') towards Design, Build, Finance and Operation of a new 40 MLD Recycle and Re-use Tertiary Treatment Reverse Osmosis ('TTRO') plant along with associated infrastructure under Hybrid Annuity Model ('HAM'). WABAG will be the technical partner of the project and will execute the Design-Build-Operate ('DBO') contract with SPV worth Rs. 594 crores.

The project scope is scheduled for 2 years construction period followed by a long-term operation and maintenance period of 15 years. This project would receive a grant during construction period from GNN, which has raised money through India's first municipal Green Bond.

The scope of works under this concession contract includes Design, Construction, Supply, Installation, Testing, Trial Run and Commissioning followed by Operation & Maintenance for 15 years, of a new 40 MLD TTRO plant. The plant will use membrane technology with Ultra filtration followed by Reverse Osmosis to further purify the treated sewage water to industrial usage quality. In addition, WABAG will also perform renovation & refurbishment of the upstream 56 MLD STP plant, followed by its Operations & Maintenance thereafter.

The 40 MLD TTRO plant once commissioned shall be the largest TTRO plant under HAM in India and expected to provide sustainable solution for the water needs of the industries located in Sahibabad Industrial Estate, Ghaziabad. In terms of environmental impact, this will be a pioneering project in the Ghaziabad area, since industries here will now be mandated to use TTRO-treated water, instead of the presently used ground water, which is already depleting fast. It is worth noting that WABAG has on Design, Build Operate (DBO) basis already built, commissioned and is currently operating a state-of-the-art 45 MLD TTRO plant in Koyambedu, Chennai for CMWSSB which is supplying treated water from the said plant to SIPCOT industrial estate in Chennai.

Commenting on this major order, Mr. S.Varadarajan, Director and Chief Growth Officer said, "Wabag has been at the forefront of the Water Recycle & Reuse initiative in India. Several states in India have already come up with Reuse policies aiming at recycling 70% of Treated Waste Water by 2025 & 100% of Treated Waste Water by 2030. This order is yet another milestone for WABAG towards contributing to sustainable water solutions to industries in Chaziabad through advanced technologies for reuse of water. We thank GNN for the confidence and trust reposed in WABAG for this prestigious project."

Shares of VA Tech Wabag Limited was last trading in BSE at Rs. 237.45 as compared to the previous close of Rs. 242.20. The total number of shares traded during the day was 21376 in over 1731 trades.

The stock hit an intraday high of Rs. 245.05 and intraday low of 235.50. The net turnover during the day was Rs. 5112111.00.

Source : Equity Bulls

Keywords

VATechWabag INE956G01038 ConcessionAgreement Recycle Reuse TTROPlant HAMProject