The Hindu Business Line : Fresh water pact with Tirupur user industries on the cards

NEW Tirupur Area Development Corporation Ltd is expected to enter into a fresh individual service agreement with the Tirupur wet-processing industries originally committed to buy water from the BOOT (build-own-operate-transfer) company.

NTADCL is a special purpose vehicle implementing a model industrial/drinking water supply project under private initiative.

The process of securing fresh water purchase agreement from the 750-odd user industries in Tirupur will start from next month and the exercise may be gone through for a couple of months, said Mr Samir Vyas, Managing Director of the NTADCL, which is executing the Rs 1,023-crore water supply and sanitation project in the knitwear exporting zone.

The draft of the water purchase agreement is to be whetted and cleared by Industrial Development Bank of India (IDBI), the nodal funding agency for the Tirupur project and once this is done, the infrastructure company would initiate the process of securing the fresh agreement from the user-industries, Mr Vyas told Business Line.

The service agreement, the special purpose vehicle company will enter with the user industry, will give the final tally of the dyeing and textile finishing industries in Tirupur that will be buying water for industrial consumption on a commercial tariff and the quantum of water required, the two sure points to decide on the return on investment and the commercial success of the project.

The NTADCL's preliminary survey has put the number of water-buying industries around 800 and as the need for water for wet-processing in the area goes up along with the production demand, this number may swell.

As for the pricing of the water, the NTADCL has set the selling rate for industrial consumers at Rs 45 per 1,000 litre. The BOOT operator, in this case, United Utilities Ltd, which will be the operating and maintenance agency for the Tirupur project, has a provision in the agreement for a pricing formula. According to Mr Vyas, the pricing would be periodically reviewed.

The project execution chart of NTADCL has envisaged a two-stage implementation of 185 million litre per day water supply for TirupurThe commercial distribution of water to Tirupur industries (coming under the phase-I) is expected to start in April.

More Stories on : Knitwear & Hosiery | Water | Tamil Nadu

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