Essel Utilities to raise Rs 700 cr to implement its water distribution project in Aurangabad.

Essel Utilities, an enterprise of Mumbai-based Essel Group, is aiming to raise around Rs 700 crore to implement its water distribution project in Aurangabad.

Aurangabad City Water Utility Company Ltd (ACWUCL) is the water distribution concessionaire of Aurangabad Municipal Corporation (AMC) under the public-private partnership model to manage clean and equitable water distribution services for Aurangabad city.

Starting 2005, the project faced hurdles, but the project is likely to be back on track in the next few months.

Estimated at Rs 1,100 crore in 2008, the project involves water distribution in AMC and Cantonment area having a population of 12 lakh and over 1.25 lakh connections.

The project involves water distribution and management services from the source at Jayakwadi Dam to each household and commercial establishments.

Now, the project cost is set for an upwardly revision to around Rs 1,400 crore, which includes having a new supply and distribution network of over 1,000 km.

“Around Rs 300 crore to Rs 400 crore is supposed to be given as a grant for the project by AMC, 30% of the project will come as equity and the balance as a debt to be borrowed from the banks. We had tied up with banks earlier, but now it will have to be reworked,” said Brajesh Singh Bhadauria, business head – Smart Utilties.

IDBI Bank used to be the banker who had disbursed partial amount in three tranches to assist in laying 113 kms of water distribution network. In the new structure, there will be a different banker.