Water technology company VA Tech Wabag has completed the financial closure for its hybrid annuity model (HAM) project received from the Kolkata Metropolitan Development Authority (KMDA).
VA Tech Wabag had earlier signed a ₹575-crore HAM concession agreement under the Namami Gange programme administered by the National Mission for Clean Ganga (NMCG) in Kolkata.
The company would execute engineering, procurement and construction (EPC) portion of this project over 24 months followed by O&M (operation and maintenance) contract spread over 15 years.
Once complete, the project with a cumulative waste-water treatment capacity of 187 MLD would contribute to reducing the discharge of untreated sewage into the Ganga from West Bengal by about 15%.
The EPC portion of the project is to be funded by a mix of NMCG grant, equity and debt. About 40% of the EPC cost would be funded by NMCG grant during the construction period and balance by a mix of debt and equity. The company had raised debt from a consortium comprising International Finance Corporation and Tata Cleantech Capital Ltd, it said in a statement.