Decks cleared for Pithampur water supply project

Clearing decks for ambitious Rs 282 crore water supply project for Pithampur region, the DMIC Trust has given approval for Rs 55.39 crore as equity contribution and Rs 193.5 crore as loan for the mega venture.

The trust also assigned nod for establishment of Special Purpose Vehicle (SPV) which would take care of the project.

The approval was assigned in the meeting of DMIC Trust in New Delhi on Tuesday. On July 1, the mega project had received in principal approval from DMIC.

The project would receive 40% funding from equity and 60% from long term debt. The AKVN Indore would contribute with 51% equity, while DMIC Trust would contribute with 49% equity.

The documentation of the approval might take a fortnight, an official from AKVN Indore said. The officer said that the approval from the trust meant nod to half-a-dozen issues including overall approval for the project, approval for SPV etc.

Once the formal approval is received, then the tendering process would be undertaken.

AKVN Indore managing director Manish Singh said that with the final approval for the project would mean that the ground level work could commence within six months. The corporation plans to complete the DMIC project by March 31, 2016.

In the last meetings held in April, DMIC technical experts offered some suggestions and had asked corrections in the DPR accordingly.

In the same meeting, proposal was mooted that a Special Purpose Vehicle (SPV) would be formed for the ambitious water supply plan for Pithampur industrial region. First phase of the plan with 30MLD water supply is expected to be over in next three years.

The Narmada water would be brought till Tihi village and would be treated at Simrol plant, said an AKVN technical officer associated with the Detailed Project Report (DPR).

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Decks cleared for Pithampur water supply project