Tiruppur Project Cost Slashed By Rs 50 Crore
The cost of the Tiruppur Infrastructure Development Project is being scaled down by Rs 50 crore from the original estimate of Rs 1,310 crore. The first phase of the project envisages improving the water supply and drainage in Tiruppur at a cost of Rs 600 crore.
The project cost is being brought down in line with court directives that require dyeing units to put up effluent treatment plants individual or common on their own, and not include it as part of the project.
Consequently the four shortlisted consortia headed by Mahindra & Mahindra, Biwater of the UK, Hume Industries of Malaysia and Cuk Dong of Korea have taken back their proposals to rework the cost. The deadline for the re-worked bids has been fixed in the last week of August.
Under the earlier schedule, the bids were to be finalised by end-June. The new specifications will imply a delay of two months in project implementation.
In phase-I, the project was to focus on improving water supply and drainage in Tiruppur town. In this, the effluent component alone, costing about Rs 82 crore, is undergoing a minor modification. The Tiruppur infrastructure project will now concentrate merely on treating municipal sewerage and not industrial or hazardous waste, as originally planned. Tiruppur has been badly hit by the pollution from dyes being dumped into Bhavani river. All dyeing units are already paying a very high price for water and will be asked to pay Rs 25 per kilo litre once the facilities are installed.
A new corporate entity will be formed to implement the project. Tamil Nadu Corporation for Industrial and Infrastructure Development (Tacid), the Tiruppur Exporters Association and the final bidder will pick up equity in new company. The controlling stake will be held by the bidder.
In the tender inviting bids, Tacid promised an 18 per cent internal rate of return which works to an effective water tariff for Rs 25 per kilo litre.
Exporters, point out officials, who are also co-promoters, are willing to pay a price for water because of the stringent pollution control norms being imposed by the state pollution control board and the courts.