Chennai, March 30: India's water technology multinational Va Tech Wabag Ltd has completed financial closure for its Hybrid Annuity Model (HAM) project received from Bihar Urban Infrastructure Development Corporation (BUIDCO), said officials.
The city-based Va Tech Wabag has tied up the debt fund with PTC India Financial Services Ltd.
The company had bagged the Rs 1,187 crore contract with BUIDCO under the prestigious National Mission for Clean Ganga (NMCG) Scheme to develop sewage treatment plants (STP) of 150 million litres per day (MLD) capacity along with sewerage network of over 453 km in the Digha and Kankarbagh zones of Patna.
Va Tech Wabag will execute the engineering, procurement and construction (EPC) portion of STP under HAM over 24 months, followed by operation and maintenance (O&M) of 15 years.
The STPs will produce renewable energy from biogas to run the plants leading to lower operational expenses, Va Tech Wabag said.
This project comprises of a design, build and operate (DBO) part worth Rs 940 crore and HAM scope worth about Rs 247 crore.
The EPC portion of the hybrid annuity ccope is to be funded through a mix of NMCG grant (40 per cent) and 60 per cent by equity and debt.
To meet the project's debt funding requirement of about Rs 86 crore, Va Tech Wabag has partnered with PTC India Financial Services Ltd.
Referring to the company funding thermal power plants earlier, PTC India Financial Managing Director and CFO Pawan Singh told reporters that the current focus is on lending for green and clean projects.
He said the company is decarbonising its portfolio and is strong in renewable energy.
Va Tech Wabag's Director & Chief Growth Officer and Head of Capital Projects S. Varadarajan said it is yet another proud moment for the company to achieve financial closure of second HAM project in succession under current context in the country.
Va Tech Wabag has floated a wholly owned subsidiary, DK Sewage Project, to set up the sewage treatment plant for the project.
The listed Va Tech Wabag will be investing upto Rs 29 crore in DK Sewage by way of equity shares, compulsorily convertible preference shares, and convertible/ non-convertible debentures.