Telangana Ratifies Escrow Deviation for Rs 1,906 Cr STP Project Between GHMC and ORR

HYDERABAD — The Telangana government has ratified a decision by the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) Managing Director to permit a deviation from the escrow account requirement for a major sewerage infrastructure initiative under AMRUT 2.0.

The approval pertains specifically to Package-II of the project, which entails the construction of 22 sewage treatment plants (STPs) across Urban Local Body (ULB) areas located between the Greater Hyderabad Municipal Corporation (GHMC) limits and the Outer Ring Road (ORR).

Under the concession terms, Clause 28 of the Concession Agreement required the establishment of an escrow account prior to the Date of Appointment (DOA). The state government ratified the deviation from this clause and approved July 15 as the DOA, subject to compliance with all other terms and conditions outlined in the agreement.

The project is designed to handle a combined treatment capacity of 471.50 million litres per day (MLD). In addition to setting up the infrastructure, the contract mandates the operation and maintenance of the 22 STPs for a period of 15 years.

Implemented through National Competitive Bidding under the Hybrid Annuity Mode (HAM), the project aims to significantly strengthen the sewerage treatment network in the expanding urban corridors between the GHMC boundary and the ORR.

In August 2024, the state government had accorded administrative sanction of Rs 1,906.44 crore for the implementation of the project. Under the HAM financing structure, 40 per cent of the investment is provided by the concessionaire agency, while the remaining 60 per cent is contributed by the state government.