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Jain Irrigation to raise $40 million in debt from IFC

New Delhi : Global irrigation major Jain Irrigation Systems Ltd (JISL) has been awarded a Rs 375 crore turnkey contract by the Pune Municipal Corporation (PMC) for a major project that seeks to revamp the entire water supply system in the city even as the World Bank's private lennding arm International Finance Corporation (IFC) said it would do a $40 million debt investment in the company.

In the first such major order secured by the Jalgaon-based Jain Irrigation, the PMC has asked it to "study, survey, investigate, assess, design & validate and revamping the entire water supply system including carrying out water audit, non-revenue water (NRW) reduction, introduce SCADA, bill reading and generation and carry out operation & maintenance of the system".

Under the contract, JISL will undertake a detailed study and analysis of the present intermediate water supply system and will provide the effective solution to convert it in to 24x7 equitable water distribution system with adequate pressure, with considerable reduction in leakages and non-revenue water, besides putting in place SCADA system.

The project involves a pipeline of 508Km, installation & billing for 49,000 water meters including 1339 kms laying of utility ducts, apart from water pipe line.

The project also envisages elimination of the NRW of the city by plugging losses and upgrading the entire water supply network. Pune is the first large city in India to execute a project of this nature on such a large scale.

The Pune Municipal Corporation has drawn up an ambitious plan to provide on a 24X7 basis pressurized water supply to residents in its area besides implementing 100 per cent smart metering covering every household over the next five years.

"We are proud to have received the order for creating an integrated network of drinking water supply for such a large city and residents of Pune city will experience on completion a seamless drinking water supply at constant pressure with correct metering and billing", said Jain Irrigation Joint Managing Director Atul Jain.

"We hope this will act like a model project for other cities in Maharashtra and other parts of the country also", he added.

Meanwhile, IFC has said it will invest $40 million (about Rs 260 crore) in Jain Irrigation Systems to partially finance the company’s capital expenditure plans. The IFC said it will make the investment via rupee-denominated debt.

Jain Irrigation plans to spend $50 million over the next 12 months to expand operations in micro-irrigation systems, plastic pipes, tissue culture, and solar products in India.

The IFC has invested in Jain Irrigation, including in equity, in several previous round over the past several years.

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