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The financial restructure of New Tirupur Area Development Corporation Ltd, a ₹1,023-crore public-private partnership in the water sector, can be implemented only after the Tamil Nadu Government takes a policy decision on regulating ground water usage by industry, according to an order of the Madras High Court.
The company is a ₹1,023-crore public-private partnership in the water sector.
The Court passed the order on January 31, on a petition filed by AIDQUA Holdings (Mauritius) Inc, one of the main stakeholders in NTADCL, which is implementing a 185-million-litre-a-day water supply project for the industrial town of Tirupur and the surrounding areas.
The other main stakeholder is the Water Investment Company, one of the respondents in the petition, promoted by IL&FS and the Tamil Nadu Government. A consortium of 19 banks led by IDBI has given a loan of over ₹615 crore.
The Court upheld one of the contentions of AIDQUA Holdings that the State Government, which is to bring in ₹150 crore under the CDR, had not kept up its commitment to notify ‘prohibition of usage of ground water for industrial purposes’ as provided in the concession agreement.
The viability of the CDR package rests on such a law being enacted. The Court observed that the State Government has pumped in about ₹36 crore under the CDR to service the debt. But without a law to improve the marketability of water the money brought in will `only go down the drain, as waste water, if no law is enacted.’
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