homevideos Newsbusiness NewsNamami Gange project: 40% payment is made by govt; rest via equity & debt, says VA Tech Wabag
Namami Gange project: 40% payment is made by govt; rest via equity & debt, says VA Tech Wabag
VA Tech Wabag has achieved financial closure of its Namami Gange hybrid annuity model (HAM) project in West Bengal, by roping in marquee creditors like IFC and Tata Cleantech.
VA Tech Wabag has achieved financial closure of its Namami Gange hybrid annuity model (HAM) project in West Bengal, by roping in marquee creditors like IFC and Tata Cleantech.
Talking about the project, Rajneesh Chopra, Global Head-Business Development at VA Tech Wabag said 40 percent of the payment is done by the government and the balance 60 percent comes by way of equity and debt.
He added that the repayment is going to be on annuity basis which is spread across 15 years. So both capex and opex will be paid on quarterly basis for the next 15 years,” said Chopra in an interview with CNBC-TV18.
He further stated that Namami Gange is the first project where HAM has been introduced beyond roads.
“I would like to compliment the government for coming up with this innovative model for the sector because it was there in the roads, but now the confidence is building up for the water sector,” he added.
Talking further about the project, he said, “This project includes sewage treatment plants, the existing ones have to renovated and rehabilitated and the total project duration is going to be 24 months, which is to be followed by 15 years of operation and maintenance,” he said.
For full management commentary, watch the video
(Edited by : Pranati Deva)
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