VISAKHAPATNAM: The National Apex Committee (NAC) of the Ministry of Housing and Urban Affairs (MoHUA) has accorded in-principle sanction to three major Urban Challenge Fund (UCF) projects worth Rs 1,501.03 crore for Visakhapatnam, covering underground drainage, 24/7 drinking water supply and automation of the city’s water distribution system.
Greater Visakhapatnam Municipal Corporation (GVMC) Commissioner and Greater Visakhapatnam Smart City Corporation Limited (GVSCCL) Managing Director Ketan Garg said the approval was granted at the NAC meeting held in New Delhi on May 11. The projects submitted by the GVMC and the GVSCCL included an underground drainage system in Madhurawada, 24/7 piped water supply in Madhurawada and adjoining areas, and automation of bulk and semi-bulk water supply systems in the city.
Urban projects aim to strengthen drinking water & drainage infra
Under the UCF scheme, the MoHUA will provide grant of Rs 375.26 crore, accounting for 25% of the total project cost. Funds will be arranged through loans from the International Finance Corporation (IFC), Canara Bank and Indian Overseas Bank.
The remaining cost will be borne by the GVMC. The proposals were earlier vetted and approved by the State Level High Power Committee under the leadership of Chief Minister N Chandrababu Naidu, which included Municipal Administration and Urban Development Minister P Narayana and Principal Secretary S Suresh Kumar.
The projects are aimed at strengthening civic infrastructure in the developing Madhurawada area covering Madhurawada, East and Bheemili zones in the GVMC.
The Madhurawada underground drainage project is estimated at Rs 658.61 crore. It will be financed through 75% IFC loan and 25% UCF grant.
The project includes a 401-km sewer network and a 20 MLD sewage treatment plant based on Sequential Batch Reactor (SBR) technology with tertiary treatment capability.
Household sewer connections will also be provided in the Madhurawada growth corridor.
The 24/7 water supply project is estimated to cost Rs 725.18 crore. The financing structure includes 50% bank loan, 25% UCF grant and 25% GVMC contribution. The project includes a 65 MLD water treatment plant, 37,407 Advanced Metering Infrastructure (AMI) smart connections and a volumetric tariff system.
The project will convert intermittent water supply into round-the-clock pressurised piped water supply in Zone 2 of Visakhapatnam. District Metering Areas (DMAs) will also be established to reduce non-revenue water losses.
The automation of bulk and semi-bulk water metering project has been estimated at Rs 117.24 crore. It will be funded through a mix of 50% bank loan, 25 % UCF grant and 25% GVMC contribution.
“We are grateful to the MoHUA for according in-principle to sanction three major UCF projects’’ Ketan Garg said.