Hyderabad:
Infrastructure Leasing
and Financial Services Ltd (IL&FS) has ventured into its
second private sector water supply project. IL&FS has tied up
with Andhra Pradesh Industrial Infrastructure Corporation (APIIC),
a state government-owned infrastructure provider, to implement the
project.
The IL&FS-APIIC project, called Visakhapatnam Industrial Water
Supply Project, aimed at providing reliable water supply to the
industries in this region, is now in the first stage of
implementation process. The project will initially benefit major
proposed projects in this region, such as the special economic
zone, the pharma city project and the greenfield Gangavaram port
project, say IL&FS sources. This project will be the states
first industrial water supply project being taken up the state
government through private participation.
APIIC had recently called for expression of interest bids for
equity participation in the project. The Rs 400-crore project,
which will be implemented in two phases, envisages the use of the
existing 153-km-long Yeleru Left Bank canal, which brings water
from the Yeleru reservoir in East Godavari district to
Visakhapatnam. The Yeleru project is presently supplying 182
million litres water per day to Rashtriya Ispat Nigam Ltd and 16
million litres per day to National Thermal Power Corporations
1000-mw Simhadri Thermal Power Project.
The detailed feasibility and investment banking report for the
project was done by Binnie Black and Veatch of the UK, while the
engineering report of certain components is now being prepared by
the Germany-based Lahmeyer International.
The project development activities have been funded by APIIC and
India Project Development Fund, a trust fund of leading
institutions managed by IL&FS. The special purpose company
that has been already established, Visakhapatnam Industrial Water
Supply Company, will be executing a concession agreement with the
state government for design, construction, operation and
maintenance of the project facilities on a build, own, operate and
transfer basis.
The
IL&FS officials say the construction work on the Tirupur water
project in Tamil Nadu will start soon. The Rs 1,100-crore project,
which comprises both water supply and underground drainage
components, is expected to give a boost to the water-intensive
textile dyeing and processing units in Tirupur.
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