First Sewage Treatment Plant under Hybrid Annuity Mode

A tripartite agreement between National Mission for Clean Ganga (NMCG) and Uttarakhand Pey Jal Nigam and Uttar Pradesh Jal Nigam was signed for setting up of India’s first Sewage Treatment Plants under Hybrid Annuity mode, at Haridwar and Varanasi.

About 3000 MLD sewage from 97 cities on its banks are the biggest source of pollution for Ganga. Of this, 1750 MLD sewage comes from just 10 cities.

34 projects worth Rs 3581 crore had been sanctioned for Ganga cleaning between 2008-2014, while 56 projects worth Rs 9630 crore have been approved since 2014 till date.

It is the first time ever in India that Hybrid Annuity-based PPP mode is being applied in sewerage sector. Under this agreement the maintenance of the project will be the responsibility of the concessionaire for which there will be performance based phased manner of payment. This would ensure continued performance of the sewage infrastructure assets created due to better accountability, ownership and optimal performance.

The 50 MLD STP in Varanasi was awarded to a consortium led by Essel Infra Projects Limited at an estimated cost of Rs 153.16 crore. In Haridwar, HNB Engineers Private Ltd. won the contract for a total sewage treatment capacity of 82 MLD (68MLD in Jagjeetpur & 14MLD in Sarai) at an estimated cost of Rs 171.53 crore.

The awarded projects would ensure that untreated sewage does not flow into river Ganga, thus giving a boost to India’s flagship Namami Gange program. The construction of these two new/ green field STPs will commence shortly.