VA Tech Wabag signs concession agreement for 40 MLD recycle and reuse TTRO plant in Ghaziabad
VA Tech Wabag Ltd (WABAG) is engaged in the business of the water treatment field. Its principal activities include design, supply, installation, construction, and operational management of drinking water, wastewater treatment, industrial water treatment & desalination plants.
Through its wholly-owned subsidiary, Ghaziabad Water Solutions Private Limited (SPV), the company, has signed a concession agreement with Ghaziabad Nagar Nigam (GNN) worth Rs 594 crore. The agreement has two phases; the first is for a period of two years for construction, which will include design, construction, supply, installation, testing, trial run, and commissioning of a new 40 MLD recycle and re-use tertiary treatment reverse osmosis (TTRO) plant along with associated infrastructure under hybrid annuity model (HAM). The second phase will be a 15-year contract for long-term operation and maintenance.
In a filing with the exchange, 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 per cent of treated wastewater by 2025 & 100 per cent of treated wastewater by 2030. This order is yet another milestone for Wabag towards contributing to sustainable water solutions for industries in Ghaziabad through advanced technologies for the reuse of water. We thank GNN for the confidence and trust reposed in Wabag for this prestigious project.”
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 and refurbishment of the upstream 56 MLD STP plant, followed by its operations & maintenance thereafter.
Once commissioned, the 40 MLD TTRO plant will be the largest TTRO plant under HAM in India. It 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 groundwater.
The scrip has slipped 2.15 per cent to Rs 237.00 on NSE. The shares of VA Tech Wabag Ltd witnessed heavy selling as it slumped more than 33 per cent in the last six months. Still, considering its future projects and concession agreement mentioned above, keep a close eye on this scrip for the upcoming session.