Austrian OeEB Lends to Vishvaraj Environment for National Mission Clean Ganga Project
Vishvaraj Environment Pvt. Ltd. (VEPL), India’s leading ESG-focus water utility firm today announce that it has achieve the Financial Closure for its Hybrid Annuity Model (HAM) project at Maheshtala under the Namami Gange programme administer by the National Mission for Clean Ganga (NMCG).
VEPL, through its subsidiary Maheshtala Waste Water Management Pvt. Ltd. (MWWMPL), had earlier sign a Rs 273 Crore HAM concession agreement under the Namami Gange programme administer by the National Mission for Clean Ganga (NMCG) with Kolkata Metropolitan Development Authority (KMDA ) as the principal executing agency, which included the scope of designing, financing, constructing the sewage treatment plants, pumping stations and other associate infrastructure at Maheshtala.
The project involves construction period of 2 years and 15 years of O&M, back by annuity from NMCG.
This will contribute to India’s movement towards achieving Sustainable Development goals, with strong positive impact on the SDG-6 (Water) and SDG -14 (life under water) parameters.
The treated water will be release back into the Ganga, where millions of people are dependent for their livelihood on the river in the downstream region.
The project cost is to be funded by a mix of NMCG Grant, Equity and Debt, with entire project debt of over Euro 13 million to be funded by Oesterreichische Entwicklungsbank AG, the Development Bank of Austria (“OeEB”).
This transaction marks the first direct lending by a European DFI in NMCG’s HAM projects. Deloitte India was the financial advisor for this transaction.
The signing event was conducted at NMCG office on 25th May, 2022 in the presence of the Honourable Ambassador of the Republic of Austria to India, Her Excellency Katharina Wieser and Mr. Hans-Jörg Hörtnagl, Austrian Trade Commissioner to India.
Speaking at the event, the Austrian Ambassador welcomed the participation of the Austrian development bank in India’s clean ganga mission project which has highly positive social impact on millions of people, and wished for greater participation from Austria in future NMCG projects.
She wished best luck to the Vishvaraj group for implementation of this project, and wished for continued Austrian involvement in its future projects.
The Austrian trade commissioner mentioned the high level of technical expertise available with Austrian companies in the field of environment protection and wish for greater future participation from Austria in NMCG projects.
Shri G. Asok Kumar, Director General, NMCG Said :
Smt. Antara Acharya, CEO of KMDA congratulated the NMCG and VEPL group for achieving financial closure.
This project has highly positive social impact for the people of the state of Bengal and would benefit millions of people in the downstream areas.
Sabine Gaber, Member of OeEB’s Executive Board Said :
Mr. Arun Lakhani, CMD, VEPL Said :
Sidhaartha Lakhanee, ED, VEPL Said :
*Photo Caption: Dignitaries at the financial closure event of Vishvaraj group project: Honourable Ambassador of the Republic of Austria to India, Her excellency Katharina Wieser ( Centre) and Shri G. Asok Kumar ( Director General , NMCG) ( Centre ) with plaques commemorating the first lending to a private company by a European DFI for NMCG’s sewage treatment HAM projects. Other guests included Mr. Hans-Jörg Hörtnagl (Austrian Trade Commissioner to India ), officials from NMCG, KMDA and Vishvaraj group
Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the Development Bank of Austria since March 2008.
It specialises in the provision of long-term finance for the implementation of private sector projects in developing countries which create sustainable development. Additionally, OeEB provides technical assistance, which can be used to enhance the developmental impact of projects.
About Vishvaraj Environment
VEPL is a leading Indian ESG-focused water utility company.
VEPL has extensive experience in drinking water, 24/7 water and sewage treatment projects in PPP and EPC modes and has a combined operating capacity of over 2200 MLD across water and wastewater treatment & reuse plants.
Its project portfolio includes India’s largest sewage water – power plant reuse project (Nagpur Waste Water Pvt. Ltd., rated “A stable” by India Ratings).
VEPL is a debt free company with healthy promoter group financials.
Today VEPL is amongst the top 50 global private water operators (GWI ranking).