First water supply project in the Public Private Partnership framework

New Tirupur Area Development Corporation Limited (NTADCL) has been established as a special purpose vehicle for development and implementation of the Tirupur Water Supply and Sewerage Project. NTADCL is promoted by Tamilnadu Water Investment Company Limited (TWIC), Infrastructure Leasing and Financial Services Limited and Tirupur Exporters Association to implement the first Water Supply and Sewage project under the public-private partnership in the country. It is the first water supply project in India financed commercially on a limited recourse basis. A Concession Agreement has been signed in 2000 between Govt of Tamilnadu, NTADCL and Tirupur Municipality(TM)

The Project foundation was laid on 20th June 2002 by Honorable Chief Minister of Tamilnadu. The Project was inaugurated on February 2006.

Under the project, facilities have been constructed to abstract, treat and supply 185 MLD (million litres of water per day) from the confluence of river Cauvery and Bhavani. The water is being supplied to the dyeing, bleaching and other industries and domestic consumers in and around Tirupur. The domestic consumers are of Tirupur Municipality(TM), three Town Panchayats and fifteen Village Panchayats to cater around 11 Lakh beneficiaries. This provides umbrella coverage for the entire water supply requirements of Tirupur Planning area spread over 225 SqKm.

In addition, water supply is being provided to enroute habitations in five wayside unions through Tamilnadu Water Supply and Drainage Board (TWAD). The water supply project has been completed within stipulated time frame and budgeted cost as per prescribed standard. NTADCL has commenced water supply to all consumers (industrial and domestic) since 2005 on continuous basis. The Project also includes about 120 KM length of sewer collection system with Four Sewage Pumping Stations (SPS) and a 15 MLD Sewage Treatment Plant (STP) expandable to 30 MLD. The sewage system has been commissioned in the year 2008.

Salient Features

 

	Water Quantity to be supplied		185 Million Litres per Day (Expandable to 250 MLD)
	Concession Period		30 years
	Cost of the Project		Rs. 10230 Million
	Debt		Rs. 6138 Million
	Equity		Rs. 3227 Million
	Sub-Debt		Rs. 865 Million

Unique Aspects / Details of the Project

• Tirupur Water Supply and Sewage Project (TWSSP) is the Project in the country implemented by Public-Private Partnership.
• Prestigious water project in our country founded by Project Finance and non-recourse basis.
• It is the largest private investment in the Urban Infrastructure sector.
• State Leverage support by 19 times {Rs.550 million of state financing helps raise over Rs.10000 million for the project}.
• Provides a viable model for implementing other projects in the sector.
• Tamilnadu is the first State in the country to set up a Public-Private Partnership based institution in the sector, namely Tamilnadu Water Investment Company Limited.

Beneficiaries of the Project

1. Rural households (water supply through TWAD Board / Direct)

• 8 Village Panchayats.
• 600 Rural Habitation covered under 5 Panchayat Union.
• Concession Quantity : 18 MLD. 

      Additionally, 461 habitations under 68 Village Panchayats in Tirupur & Erode Districts

• Additional Quantity : around 8 MLD. 

2. Urban households (water supply through Tirupur Corporation)

• Population - 8 lakhs
• Concession Quantity : 39 MLD and Additional quantity : 54 MLD.

3. Sewerage network covering over 60 per cent population of Tirupur - currently around 15246 sewer connections.

4. Low cost sanitation facilities for slum areas - 31 sanitary complexes have been implemented

5. Providing quality water to the processing industries of Tirupur

Impact of the Project

• Tamilnadu emerged as the premier location for textile (Knitwear export) industry.
• Industrial growth by assured quality water supply.
• Improve health & hygiene conditions for households.
• Dignity of life, particularly for women through private in-house sanitation.
• Create enhanced opportunities for employment and poverty reduction.
• Exploitation of groundwater was protected.
• Free-up ground water for agricultural growth, productivity and development.