WABAG led joint venture secures order worth about INR 4,400 Crores, funded by JICA

VA TECH WABAG ('WABAG'), a leading pure-play water technology Indian Multinational Group, further enhanced its leadership position in the Global Desalination market, by securing a Design, Build, Operate ('DBO') order, for the 400 Million Litres per Day (MLD) Sea Water Reverse Osmosis ('SWRO') Desalination Project from Chennai Metropolitan Water Supply and Sewerage Board ('CMWSSB') worth about INR 4,400 Crores. The project is scheduled to be executed under the leadership of WABAG in joint venture with Metito Overseas Limited ('Metito').

This DBO order includes the scope of Design, Engineering, Procurement, Construction, Installation, Testing and Commissioning of the 400 MLD SWRO Desalination plant and the associated sea water intake system over a period of 42 months followed by 20 years of Operation & Maintenance ('O&M'). The desalination process will include Lamella Clarifiers, Dissolved Air Flotation System, Gravity Dual Media Filters followed by Reverse Osmosis and Re-mineralization to produce clean drinking water which will be further distributed by CMWSSB to the residents of South Chennai.

This project is a landmark project for Chennai and India since this project when completed, will be the Largest Desalination plant in the South East Asian Region. This project which is being funded by Japan International Cooperation Agency ('JICA') will enhance the water security for the city of Chennai through a stable source of drinking water in the form of Desalination. This project will also make Chennai, the Desalination Capital of India with almost 750 MLD of Desalinated water to be produced along the coast of Chennai. With the 400 MLD SWRO Desalination plant, Wabag will be responsible for about 70% of the water production through Desalination in Chennai.

Commenting on this order win, Mr. Shailesh Kumar, CEO - India Cluster said, "This is historically the largest ever order for Wabag. I'm extremely happy that we have been awarded this massive, prestigious and important Desalination plant order in Chennai from our trusted customer CMWSSB with whom our association spans over 2 decades now. Wabag has won this order against Global competition reinforcing our technological superiority and competitiveness in the Global Desalination space. This is a testament to our leadership in the Global Desalination space and puts Wabag on an inclined growth path for the future. I'm also elated that this landmark order coincides with Wabag being ranked 3rd Globally among private water operators and among the Top 10 Desalination players globally by GWI. The project when completed will not only be a landmark project for Wabag, but a testament to Tamilnadu's commitment to building Water security for Chennai and the State, making it a model for the whole country."

Shares of VA Tech Wabag Limited was last trading in BSE at Rs. 336.55 as compared to the previous close of Rs. 333.85. The total number of shares traded during the day was 39203 in over 1257 trades.

The stock hit an intraday high of Rs. 337.90 and intraday low of 327.05. The net turnover during the day was Rs. 13103174.00.

Source : Equity Bulls

Keywords

VATechWabag INE956G01038 DBO OrderWin 400MLD SeaWater ReverseOsmosis DesalinationProject CMWSSB Chennai JICA