VA Tech Wabag Zooms 9% on Winning Largest-Ever Order of Rs 4,400 Crore
By Malvika Gurung
Investing.com -- Shares of the water treatment company Va Tech Wabag (NS: VATE ) zoomed 9% to hit the session’s high at Rs 366.45 apiece on Friday and approached its 52-week high of Rs 375 apiece.
The stock rallied after the leading pure-play water technology major announced its largest-ever order on Friday, March 31, 2023, worth Rs 4,400 crore.
VA Tech Wabag has bagged the largest Sea Water Desalination project in the South East Asian region with a capacity of 400Million Litres per Day (MLD) from the Chennai Metropolitan Water Supply and Sewerage Board (‘CMWSSB’).
The small-cap company announced that it has secured a ‘Design, Build, Operate’ (DBO) order worth Rs 4,400 crore for the 400 MLD Sea Water Reverse Osmosis (SWRO) Desalination Project from CMWSSB to produce clean drinking water for the residents of South Chennai.
The project is scheduled to be executed under the leadership of WABAG in a joint venture with Metito Overseas Limited or Metito, said Va Tech Wabag.
The project awarded to the water treatment company is for a long-term basis, as the entire scope of the DBO order includes:
- Design, Engineering, Procurement, Construction, Installation, Testing and Commissioning of the SWRO Desalination plant having 400 MLD capacity, along with the associated sea water intake system for 42 months,
- Followed by the Operation & Maintenance (O&M) work for 20 years.
On completion, the aforementioned project will be the Largest Desalination plant in South East Asia and will make Chennai the ‘e Desalination Capital of India’ with a capacity of producing 750 MLD of Desalinated water along the city’s coast.
Further, this project is being funded by Japan International Cooperation Agency (‘JICA’).
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