Chennai based real estate development and contractual mining company NAPC has formed a joint venture with the Swedish water treatment firm Lackeby Water Group (LWG). The joint venture, called NAPC-Purac, will set up wastewater treatment, desalination and purification projects.
The JV has roped in a few institutional investors who are interested in investing $100 million - $500 million in water treatment projects. The funds, spread over 18 years, will be available at interest rates of 5% post the tie up with investors. Through the JV, the Swedish firm will enter the Indian markets. The JV also marks NAPC's diversification into water management.
Lackeby contracts its work through its brand, Purac, which contributes to 60% of its revenues from municipal contracts. For now, the JV is bidding for three sewage treatment plants (STP) projects at Nesapakkam, Perungudi and Navalur regions. The projects have been valued at Rs 200 crore and are expected to get completed in 18 months. The JV aims at realising half of the revenues in the first year itself. The JV may also tap such projects of Chennai Metropolitan Water supply and Sewerage Board. LWG has till now completed contracts in 70 countries. The joint venture also plans to bid for the Rs 1,000-crore desalination plant.
In 2006, a similar joint venture was set up by the Hyderabad based IVRCL Infrastructure and Spain based Befesa Construcción Tecnología Ambiental, called Chennai Water Desalination Limited (CWDL). The JV is setting up a desalination plant at Kaatupalli, near Minjur, on the southeastern coast of India. Chennai Metropolitan Water Supply and Sewerage Board has signed an agreement with CWDL to buy water for more than 25 years. The plant uses the distillation and membrane process technologies.