STP Budhana-Muzaffarnagar

About This Project

STP Budhana-Muzaffarnagar

Location: Budhana Town & Muzaffarnagar Town
Client: NMCG / UPJN Uttar Pradesh.

Sector: Sewage Treatment Plant

Starting Date: 2020

Project Brief: The government of India has approved the Namami Gange program as an integrated approach for effective abatement of pollution in the river Ganga. As part of this and to ensure that no untreated domestic sewage flows into the river Ganga, various interventions are planned such as Interception & Diversion works and the development & operation of Sewage Treatment Plants (STPs).

Considering various development models in practice for the construction, operation, and maintenance of Sewage Treatment Plants, the government of India has approved the Hybrid Annuity based Public-Private Partnership (PPP) model as one of the options for the development & operation of STPs.

Under this model, a private investor/developer will design, build, finance, operate, and transfer the asset (STP) to the Project Executing Agency / UP Jal Nigam at the end of the Concession Period (say 15 years). 40% of the Capital cost will be paid to the developer during the construction of the STP. Balance 60% along with Operation & Maintenance (O&M) cost will be paid over the Concession Period on a quarterly basis according to the achievement of key performance indicators mentioned in the contract. Interest shall be payable on the reducing balance of 60% of the completion cost for the relevant Facility, at the rate of the SBI MCLR plus 3% per annum. Such interest shall be due and payable quarterly along with each installment of the Capex Annuity. The entire cost of development and operation of the STPs will be 100% funded by the government of India as a central sector scheme.

Pollution abatement of river Ganga has been identified as a major step in fulfilling the mandate of the National Mission for Clean Ganga under the Namami Gange Program. Budhana is located on the banks of the river Hindon. At present, there is no sewerage facility available in Budhana and Muzzafarnagar. Therefore, all the sewage generated in the city is finding its way into open drains. There are three drains in Budhana town and Muzzafarnagar town carrying wastewater and they pollute the river directly. There are three proposed SBR based STPs i.e. 32 MLD, 22.5 MLD & 10 MLD.

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