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Va Tech Wabag achieves financial closure for Rs 575 cr HAM project under NMCG

Capital Market 

Va Tech Wabag has achieved financial closure for its hybrid annuity project received from Kolkata Metropolitan Development Authority.

The company had earlier signed a Rs. 575 crore HAM concession agreement under the Namami Gange programme administered by the National Mission for Clean Ganga (NMCG) which included the scope of engineering, supply and construction of new sewage treatment plants, renovation and up-gradation of existing sewage treatment plants, rehabilitation of pumping stations and other associated infrastructure in Kolkata.

WABAG will execute Engineering, Procurement and Construction (EPC) portion of this project over 24 months followed by O&M of 15 years.

Once complete, the project with a cumulative wastewater treatment capacity of 187 MLD will contribute to reducing the discharge of untreated sewage into the Holy Ganga from the state of West Bengal by around 15 per cent.

The EPC portion of the project is to be funded by a mix of NMCG Grant, Equity and Debt. 40 per cent of EPC cost will be funded by NMCG grant during the construction period and balance 60 per cent to be funded by a mix of debt and equity.

The project debt requirement will be funded by a consortium of International Finance Corporation (AFC) and Tata Cleantech Capital (TCCL).

In line with the asset light principle of WABAG, the company has signed an agreement with Kathari Water Management (Kathari Water), a wholly owned subsidiary of EverSource Capital, fund manager for Green Growth Equity Fund (GGEF') who will be the company's investment partner in the project. GGEF is established with anchor investment from National Investment and Infrastructure Fund (NIIF) anchored by Government of India and Foreign, Commonwealth & Development Office (FCD0), Government of UK.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, February 18 2021. 11:22 IST