DJB saves Rs 100 cr in Sewage Treatment Plant Project

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Delhi Jal Board (DJB) has made a saving of Rs 100 crore in the execution of 'Asia's largest Sewage Treatment Plant (STP)' at Coronation Pillar (near Mukundpur) in Delhi. The Delhi Government on Wednesday underlined the savings by the board for the plant that can treat up to 70 MG of untreated sewage per day, which would otherwise flow into the Yamuna.

Comparing the cost incurred by in the old Nilothi STP Project with the new Coronation Pillar STP, the Delhi Government underlined that the DJB saved crores by incurring costs less by Rs 5.72 crore.

"In the old Nilothi STP Project, the DJB incurs a cost of Rs 13.075 crore to treat 1 MG (Mega Gallon) of sewage water per day while in the new, Coronation Pillar STP, the DJB incurs a cost of Rs 7.35 crore to treat 1 MG (Mega Gallon) of sewage water per day. The difference in these unit costs is Rs 5.72 crore," the Government said in a statement. 

Approximately 700 MG of waste water is generated in Delhi per day and the Coronation STP is responsible for treating a gargantuan 10 per cent of the waste water generated in Delhi, according to officials.

"This saving of Rs 5.72 crore, when extrapolated to the capacity of the Coronation Pillar Plant, translates to net savings of Rs 400 crore (70 MG x Rs 5.72 crore) to treat 70 MG of sewage water per day," added the statement.

"Historically, there exist many precedents to attest to the fact that projects by the Delhi Jal Board (and other Government organisations) have been awarded at higher final costs as compared to the initial projected cost.  This is apparent in the difference in the Projected Cost and the Final Award Cost in Pappankalan STP and Nilothi STP. However, the Coronation Pillar STP bucked this trend and instead was made for Rs 87 crores less than the projected cost," it said.

While the Nilothi STP, the projected cost was Rs 64 crore, the final award cost was Rs 261.5 crore. In Pappankalan STP, the projected cost was Rs 64 crore and the Final Award Cost was Rs 243.5 crore. In case of the Coronation Pillar STP, the projected cost was Rs 602 crore while the final award cost was Rs 515 crore.

"As a result of these higher cost projections, the cost per unit MGD treated for both Pappankalan STP and Nilothi STP is significantly higher than the cost per unit MGD for the Coronation Pillar STP… The difference in cost per unit MGD treated, for Coronation Pillar STP and Nilothi STP, is: 13.075 - 7.35 = Rs 5.72 crore per MGD treated."  

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