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The Indian Innovation Awards, 2005 Infrastructure Leasing & Financial Services (IL&FS)

Visakhapatnam Industrial Water Supply Project

Innovation Report

I.

The Context

(1)

The State

of Andhra

favourable

climate for

Pradesh has been at the forefront in I.T. agriculture and industrial promotion

providing a

and

to

support

these

large-scale

initiatives, the Government of Andhra Pradesh

(GoAP) encourages Public Private Partnership (PPP) in infrastructure

projects.

Andhra

Pradesh Industrial Infrastructure Corporation Limited

(APIIC) is a

wholly owned corporation of the GoAP, with specific mandate to develop and

implement industrial infrastructure projects in the State

(2)

Visakhapatnam Industrial Water Supply Project (VIWSP) is an initiative taken up by APIIC in partnership with IL&FS and is one of the first mega infrastructure projects to be taken up by the GoAP for development with private sector participation. The Project, being very complex in nature,

warranted started in

significant development efforts. The Project development work the year 1998 with a Detailed Feasibility and Investment Banking

Report (DFIBR), culminating in selection of the Developer through an international competitive bidding process

in

February

2003,

(3)

VIWSP is aimed at supplying 520 Mld bulk water to a combination of green field developing industrial and economic development in the Visakhapatnam

region

like

Special

Economic

Zone

(SEZ),

Pharma

City

and

Gangavaram

Port

in addition to meeting water demand of 206 Mld of existing bulk consumers VSP, Simhadri Power Plant of National Thermal Power Corporation (NTPC)

like and

Visakhapatnam Municipal Corporation

(VMC).

corridor between development. The

Kakinada and Visakhapatnam water requirement for all these

In fact, the entire eastern is identified for industrial developments would be met

through VIWSP, as there area. The Project is also

is no other economically viable source of water designed to cater the need of the irrigation

in

the

(4)

VIWSP is the second water sector project of its kind in India developed by IL&FS on a commercial format through PPP, after the successful development

of

Tirupur

Integrated

Water

Supply

Project.

However,

VIWSP

was

the

first which

mega has

waters sector project

developed

on

PPP

in

the

country,

been commissioned in September 2004 and came into commercial

operation since December 2004

  • (5)

    Period:

    • (a)

      Construction Period (Phase-I): 2003 – 2004 (15 months)

    • (b)

      Start of Commercial Operations: December 25, 2004

_____________________________________________________________________________

Category – Physical Infrastructure Development Visakhapatnam Industrial Water Supply Project

1

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