“Tirupur Water and

Wastewater
Treatment Project,
India”

SUBMITTED BY: - RAJDEEP SAINI

ROLL NO: - 47
PGDM (BANKING & FINANCE)
SEM - 4
Fact File:-

Key Data:

• Water Treatment Plant Capacity -185 million litres a day

• Plant Type - Conventional rapid gravity filter with Lamella clarifier

• Wastewater Treatment Plant Capacity - 15 million litres a day

(expandable to 30 million litres a day)

• Plant Type - Secondary treatment level - activated sludge

• Footprint - 5.2ha

• Estimated Cost - $220m

Project Timeline:

• Tirupur Area Development Project announced – 1991

• Special Purpose Vehicle (SPV) formation – 1995

• Tender / Contract Decided – 1999

• Financial Closure - March 2002

• Foundation Stone Laid - 20 June 2002

• Construction Began - October 2002

• Main Civil / Mechanical Work Completed - December 2004

 • Pipeline Testing - March 2005

• Water Treatment Plant Commissioning - April 2005

• Tirupur Municipality Receives Water - August 2005

• Wastewater Treatment Plant Completed - February 2006

• Global Water Award - March 2006

Key Players:

SPV and Sponsor

• New Tirupur Area Development Corporation Limited (NTADCL)

Partner Institutions

• Tirupur Municipality, Tirupur Exporters Association (TEA), Infrastructure

Leasing and Financial Services (IL&FS), The Tamil Nadu Corporation for
Industrial Infrastructure Development (TACID), Indo-US

EPC 1 Contractor

• Hindustan Construction Co.

EPC 2 Contractor

• Mahindra & Mahindra and Larsen & Toubro (JVC)

Operation and Maintenance Contractor

 • Mahindra Water Utilities Ltd - a Mahindra and United Utilities JVC

Tirupur project background:

• Tirupur is located in Tamil Nadu state and is India's largest producer of

cotton knitwear. With over 2,500 textile businesses located within a 25-
mile radius, earning some $1bn, the region – one of the most economically
dynamic in Southern India – accounts for over 75% of the entire country's
knitwear exports.

• "The project will provide a daily supply of 185 million litres of water."

• Water is essential to the industry, and historically groundwater and

tankers have been extensively used to overcome the city's lack of supply.

• However, the industry has heavily polluted the groundwater with chemical
dyes; it has been said – and not entirely frivolously – that the colour of the
region's water varies with the mood of Paris fashions.

• By 1990, the groundwater had become progressively more saline and

contaminated, and the need to address the situation had become of
pressing regional importance. This ultimately led to the instigation of the
project.

• While the need for an improved water system was clear, the challenge was
financing it. Ultimately, this required the formation of a Special Purpose
Vehicle (SPV) to access commercial funding and implement the project. In
1995, the New Tirupur Area Development Corporation Limited (NTADCL)
was formed for the role and subsequently began the process of
international competitive tendering.

• Since the municipal area also lacked an organized system of drainage,

sewage collection or treatment, it was decided to address both this and the
provision of potable water, as part of the Tirupur Area Development
Project. An associated wider scheme of works also encompasses additional
local infrastructure requirements including roads, telecommunications
 and power. Drawing water in one of the slum areas. The project represents a
major step forward for a country where so much of the population has limited
access to safe drinking water or sanitation. (Photograph courtesy of WHO/P.
Virot.)

Tirupur water and wastewater treatment project:

• The project itself was split into three separate contracts, two awarded on a
engineer, procure and construct (EPC) basis and one to operate and
manage (O&M) the finished facility.

• Construction began in October 2002 and the main civil / mechanical work
was completed by December 2004. Pipeline testing began in March 2005.
The water treatment plant commissioning followed the next month and
the Tirupur Municipality began receiving project water on alternate days
in October 2005, after a two month trial period. The wastewater treatment
plant was originally scheduled for completion in October 2005, but was
delayed until February 2006 by a heavy monsoon and floods.

• "The system serves nearly 1,000 textile units and over 1.6 million residents
in Tirupur and its surrounding areas."

• The fully operational system serves nearly 1,000 textile units and over 1.6
million residents in Tirupur and its surrounding areas.

• A daily total of around 125 million litres of water is supplied to the

knitwear dyeing and bleaching industry, 25 million litres to the Tirupur
municipality, which includes 60,000 slum dwellers and 35 million litres is
shared between the region's remaining rural towns, villages and
settlements.

• Around 2,000 lorries make seven to ten trips a day to supply water to the
textile industry. Households get water supply for two hours on alternate
days.

• Sanitation provision within the scheme includes 100 of the city's

designated slum areas. The water treatment plant was built to a
 conventional design, using a rapid gravity filter with a lamella clarifier to
provide the 185 million litres per day capacity.

• The wastewater facility takes domestic sewage only and uses an activated
sludge system to achieve secondary treatment standards. The plant
discharges into Noyyal river. Initially built with a capacity of 15 million
litres per day, its design allows eventual expansion to double that, when
sewer provision is extended to the remaining 15 of the town's 52 wards.

• Although the construction elements of the project were implemented in

two parts, their execution was effectively simultaneous. The EPC I work
involved building the water intake, the transmission pipeline from the
river to Tirupur and the master balancing reservoir, while the EPC 2
contract, covered the main feeder pipelines and distribution networks,
overhead and ground level storage tanks and the sewerage network in the
Tirupur town area.

• Once the construction work was completed and the master balancing
reservoir linked to the distribution network, Mahindra Water Utilities' 30-
year O&M contract came into effect.

Key players:

• NTADCL was the SPV and project sponsor. The EPC1 contractor was the
Hindustan Construction Company, with a Mahindra & Mahindra / Larsen
& Toubro joint venture responsible for the EPC2 contract. The O&M
contractor is Mahindra Water Utilities Ltd - a Mahindra/United Utilities
JVC.

• Other partner institutions in the project included the Tirupur Municipality

itself, Tirupur Exporters Association (TEA), Infrastructure Leasing and
Financial Services (IL&FS), The Tamil Nadu Corporation for Industrial
Infrastructure Development (TACID) and the Indo-US Financial
Institutions Reform and Expansion (FIRE). In addition, USAID and the
World Bank have also committed themselves to providing long-term aid.
Some pictures of the project

• India is no stranger to large water transmission schemes - 55km

of new pipeline were constructed as part of this project.
(Photograph courtesy of WHO/P. Virot)

• Available water supplies for many of India's poorest are often

very badly contaminated. For the first time, this project enabled
 local residents to benefit directly from the regional industry's
need for reliable water services. (Photograph courtesy of
WHO/P. Virot)

• The new water plant: built to a conventional design, it has a

capacity of 185 million litres per day. (Photograph courtesy of
M.C. Shrikant, New Tirupur Area Development Corporation)

• Some 2,500 textile

businesses are located
within a 25 mile radius of
Tirupur, making it India's
largest producer of cotton
knitwear and accounting
for over 75% of the
country's knitwear
exports. (Photograph
courtesy of WHO/P.
Virot)
• The chief minister of Tamil Nadu, Ms J. Jayalalithaa, meeting
with representatives of the textile industry. The project used
cross subsidies from the textile units to help make the service
provision for local residents possible. (Photograph courtesy of
the Tamil Nadu Government)

• Drawing water in one of the slum areas. The project represents

a major step forward for a country where so much of the
population has limited access to safe drinking water or
sanitation. (Photograph courtesy of WHO/P. Virot)