Namami Gange: Government likely to set up special purpose vehicle to construct STPs

NEW DELHI: The Centre is likely to set up a special purpose vehicle (SPV) next month to construct sewage treatment plants (STPs) through hybrid annuity-based public-private-partnership model under its ambitious Namami Gange programme that seeks to bring down pollution level in Ganga.

"The SPV for hybrid-annuity based PPP model for creation of STPs under Namami Gange programme is likely to be set up by end of next month," an official statement quoted Water Resources Ministry, Shashi Shekhar, as saying.

"Shekhar said it has been decided that all STPs along the river Ganga will be taken up in hybrid-annuity mode only," the statement said.

Shekhar made the statement during the inaugural session of a 'Market Conference on Hybrid-Annuity based Public Private Partnership (PPP) Model for Creation of Sewage Treatment Infrastructure' here today.

Addressing private players during the conference, Shekhar also stated that days are "not very far" when STPs will become mandatory, a move which he said, will open up a "huge market".

"All the advance preparations are underway and we are hopeful to come up with 20-30 projects by May 2016. The sale of treated water will not be factored in valuations of bids. However, we are creating a market for the sale of treated water," the secretary was quoted as saying.

Shekhar appealed to the participants to contribute Rs 10 per month to clean Ganga fund.

Earlier, Additional Mission Director (National Mission for Clean Ganga) Pushkal Upadhyay told the conference that about 12,000 million litres daily (MLD) sewage is generated in Ganga basin (11 states) and that there is a gap of 6300 MLD treatment capacity at present.

Upadhyay said the government proposes to create 4,000 MLD-capacity plants in five states.

About 200 participants from private sector and NGOs attended the day-long conference.

The purpose of the conference was to sensitise the market of the upcoming hybrid-annuity based PPP model for sewage treatment and institutionalisation of the SPV for project execution through transaction advisors, the Ministry said.