VA Tech Wabag rises on completion of financial closure of NMCG project
A leading pure-play water technology Indian multinational company, VA Tech Wabag Ltd announced on Wednesday post-market session that it has completed the financial closure for its hybrid annuity model (HAM). The company received the project from Kolkata Metropolitan Development Authority (KMDA).
The company under ‘Namami Gange Programme’ had previously signed Rs 575 crore HAM concession agreement, which included the scope of engineering, supply & construction of new sewage treatment plants, renovation & upgradation of the existing sewage treatment plants and other associated infrastructure in Kolkata. Namami Gange programme is managed by National Mission for Clean Ganga (NMCG).
Wabag will execute the EPC portion of this project over a period of 24 months, followed by operation & maintenance of 15 years.
The EPC portion will be funded by a mix of 40 per cent NMCG grant during the construction period while the remaining 60 per cent would be funded by a further mix of debt & equity.
Additionally, the company tied up with an association of International Finance Corporation (AFC) and Tata Cleantech Capital Limited (TCCL) to fund the debt portion of the capital requirement.
At 10.50 am on Thursday, its share was trading at Rs 250, up by 2.19 per cent compared to its previous close of Rs 244.65. The share reported an intraday high of Rs 255 and an intraday low of Rs 247.10 on BSE.