India

Govt plans SPV on PPP mode for creation of sewage plant

PNS

In a step for cleaning the Ganga, the Government is to set up the Special Purpose Vehicle (SPV) for Hybrid-Annuity based Public Private Partnership model for creation of Sewage Treatment Infrastructure under Namami Gange Programme by the end of next month.

A market Conference on this model was inaugurated on Wednesday for “Creation of Sewage Treatment Infrastructure” by Ministry Secretary Shashi Shekhar.

According to him, the conference is significant considering that for the first time the sewage management is being addressed the way the market would require it. He said  that Request For Proposal  for transaction advisory service will also be issued by March end. The appointment of transaction advisors will begin in June 2016 and hiring of concessionaires will start from January 2017.

Senior officials informed  that it has been decided that all  Sewerage Treatment Plant (STP) along the river Ganga will be taken up in hybrid annuity mode only and days are not very far when sewage treatment will be made mandatory. When it becomes mandatory it will open up huge market, said the officials. 

“The advance preparations are under way and we are hopeful to come with 20-30 projects by May 2016”, said Shekhar during the conference. Market is also being created for the sale of treated water. 

The Ministry of Railways, Petroleum and Power have been approached in this regard. An MoU has already been signed with the Railway Ministry for the purpose. It has been made mandatory for power plants to buy treated water from STPs if they are located within the radius of 50 kms. Shri Shekhar also appealed to each participant to contributes Rs10 per month to Clean Ganga fund.

According to official data, the total sewage generation in the Ganga basin in 11 States is about 12,000 million litre per day (MlD) and the gap in treatment capacity is about 6,300 mld (11 States). The Ministry proposes to create 4,000 mld treatment capacity in five States.