IOCL signs 15-year agreement with VMC for treated water supply

Vadodara: The Vadodara Municipal Corporation (VMC) and Indian Oil Corporation Limited (IOCL) have entered into a 15-year water purchase agreement. The agreement involves IOCL purchasing treated water from VMC’s Treated Waste Water (TWW) plant located at Rajiv Nagar, Vadodara.

The collaboration between VMC and IOCL is expected to generate annual revenue ranging from Rs 7 crore to Rs 20 crore for the municipal corporation. Yesterday, IOCL’s Executive Director Rahul Prashant handed over the first installment of Rs 10.23 crore to Vadodara Mayor Pinkyben Soni. The agreement was formalized in the presence of IOCL’s Chief General Manager Anil Kumar.

Under the terms of the agreement, IOCL will initially pay Rs 10.06 per kiloliter for the treated water, with a provision for a 3% annual increase. IOCL’s total commitment under this agreement amounts to Rs 51.18 crore, out of which a cheque of Rs 10.23 crore was handed over to the mayor yesterday. 

The agreement was signed as a part of the Government’s Reuse Treated Waste Water Policy 2018. VMC had initially laid a 19 km pipeline to transport 60 million litres per day (MLD) of treated wastewater directly to nearby industries. This collaboration is an addition to reduce the discharge of industrial water into rivers. This move will also help in conserving clean water and protecting the environment. DeshGujarat