Water technology company VA Tech Wabag has secured an Asian Development Bank (ADB)-funded ‘mega’ order from the Chennai Metropolitan Water Supply and Sewerage Board. The company classifies a ‘mega’ order as a contract with a value exceeding ₹1,000 crore.
The project involves developing a looped water transmission network for Greater Chennai City, the company said in an exchange filing. The project will be executed under the Chennai Climate Resilient Water Security and Sewerage Project, with VA Tech Wabag acting as the lead partner in the joint venture.
The scope of the project includes development of bulk transmission pipelines, feeder mains, pumping stations, and underground tanks, along with integration with the central SCADA system and testing and commissioning of the entire network. The project will be completed within 54 months, followed by 10 years of operation and maintenance.
“The development of a city-wide water grid will significantly enhance supply reliability, operational flexibility, and climate resilience for the city,” Shailesh Kumar, Chief Executive Officer – India Cluster, VA Tech Wabag, said.
The latest order follows days after the company secured another ‘mega’ public-private partnership order worth over ₹1,000 crore for the refurbishment, financing, operation, maintenance and transfer of a 45 MLD (million litres per day) tertiary treatment reverse osmosis plant in Chennai’s Kodungaiyur area. The project involves upgrading the existing facility to restore its full capacity within 18 months, followed by operation and maintenance for 18.5 years, aimed at supplying treated wastewater to industries in the ManaliEnnore and Manali-Minjur industrial corridors and strengthening sustainable water reuse infrastructure in the city.
Motilal Oswal has recommended a buy rating on VA Tech Wabag with a target price of ₹1,900 in its latest report. Shares of VA Tech Wabag closed 4% lower at ₹1,228 on NSE on Friday.