EverSource, Tata unit, IFC back VA Tech for river cleaning project

 EverSource, Tata unit, IFC back VA Tech for river cleaning project

EverSource Capital has come as an equity partner while International Finance Corporation and a Tata Capital Ltd affiliate have committed debt funding for a river cleaning project in Kolkata.

EverSource and prime development sponsor VA Tech Wabag Ltd, a publicly listed water management firm will bring around Rs 70 crore for the project.

EverSource is a joint venture between private equity firm Everstone Capital and Lightsource BP, which manages the Green Growth Equity Fund. The GGEF was established with anchor commitments from the Indian government’s National Investment and Infrastructure Fund and the UK’s Foreign, Commonwealth & Development Office.

IFC and Tata Cleantech Capital Ltd will together bring around Rs 176 crore in debt via non-convertible securities, as per a stock market disclosure. Tata Cleantech is a JV between Tata Capital and IFC.

The deal is for funding a hybrid annuity model (HAM) project commissioned by Kolkata Metropolitan Development Authority.

VA Tech had earlier signed a Rs 575 crore HAM concession agreement under the Namami Gange programme administered by the National Mission for Clean Ganga (NMCG). The scope of this project included engineering and construction of new sewage treatment plants, renovation of existing plants and other related work in Kolkata.

The company will execute the engineering, procurement and construction portion of this project over 24 months. It will then operate and manage it for 15 years.

The project has a cumulative wastewater treatment capacity of 187 million litres a day. Once complete, it will help reduce the discharge of untreated sewage into the Ganga river from the state of West Bengal by around 15%.

The EPC portion of the project is to be funded by a mix of NMCG grant, equity and debt. The NMCG grant is worth around Rs 165 crore.

Pallavi S

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