Infrastructure Project Award
Enviro Infra Engineers Secures ₹130.14 Crore Sewage Treatment Plant Project in Uttar Pradesh
NSE
eiel
BSE
544290
Enviro Infra Engineers Limited has received a Letter of Acceptance (LOA) from Uttar Pradesh Jal Nigam (Rural) for the development of a 60 MLD Sewage Treatment Plant (STP) along with associated infrastructure at Lohta, Varanasi. The project, valued at ₹130.14 crore (excluding GST), will be executed through the company’s SPV, Varanasi Lohta STP Private Limited, under the Namami Gange Programme on the Hybrid Annuity Model (HAM).
PRICE-SENSITIVE TRIGGER
Event: Receipt of Letter of Acceptance (LOA) for a sewage treatment infrastructure project.
Type: Infrastructure Project Award
Impact: Positive
Immediate Effect: The order strengthens Enviro Infra Engineers’ project pipeline in the wastewater treatment segment and expands its execution portfolio under the Government of India’s Namami Gange Programme.
Key Metrics:
- Order Value: ₹130.14 crore (excluding GST)
- Project Capacity: 60 MLD Sewage Treatment Plant
- Construction Period: 21 months
- Trial Operations: 3 months
- Operation & Maintenance (O&M): 15 years
- Project Model: Hybrid Annuity Model (HAM)
Highlight:
- The project provides long-term revenue visibility through a 15-year Operation & Maintenance contract, complementing the construction revenue from the HAM-based infrastructure project.
What Happened ?
Enviro Infra Engineers Limited informed the stock exchanges that it has received a Letter of Acceptance (LOA) dated 1 July 2026 from Uttar Pradesh Jal Nigam (Rural).
The project involves the development of a 60 MLD Sewage Treatment Plant and associated infrastructure at Lohta, Varanasi, Uttar Pradesh, under the Government’s Namami Gange Programme. The project will be executed through the company’s special purpose vehicle, Varanasi Lohta STP Private Limited, which was previously incorporated and disclosed to the stock exchanges.
The company received the LOA from the concerned department on 3 July 2026.
Key Details
Project Highlights:
- Awarding Authority: Uttar Pradesh Jal Nigam (Rural)
- Project: Development of 60 MLD Sewage Treatment Plant with associated infrastructure.
- Location: Lohta, Varanasi, Uttar Pradesh.
- Programme: Namami Gange Programme.
- Execution Model: Hybrid Annuity Model (HAM).
- Project Value: ₹130.14 crore (excluding GST).
- Construction Period: 21 months.
- Trial Run Period: 3 months.
- Operation & Maintenance: 15 years after commissioning.
- Executing Entity: Varanasi Lohta STP Private Limited (SPV).
- Nature of Contract: Domestic.
- Promoter Interest: None.
- Related Party Transaction: No.
- Company received the LOA from the concerned department on 3 July 2026.
Note:
- The project combines EPC execution with a long-term O&M agreement, providing both construction revenue and recurring maintenance income over the contract life.
Risk Analysis
Summary:
- Execution of HAM-based infrastructure projects requires timely construction, milestone achievement and efficient long-term asset management. Delays or cost overruns may affect profitability and cash flows.
Key Risks:
- Execution delays during construction.
- Regulatory and environmental approval risks.
- Working capital requirements during project execution.
- Performance obligations during the 15-year O&M period.
- Payment timelines under HAM-based contracts.
Worst Case:
- Project delays, cost escalation or slower milestone payments could temporarily impact margins and cash flows despite the secured order.
Risk Level: Medium
Company Commentary
- Enviro Infra Engineers has received the LOA from Uttar Pradesh Jal Nigam (Rural).
- The project will be executed through its SPV, Varanasi Lohta STP Private Limited.
- The project forms part of the Namami Gange Programme.
- Contract value stands at ₹130.14 crore (excluding GST).
- Construction will be completed in 21 months, followed by 3 months of trial operations and 15 years of operation & maintenance.
- The company confirmed that neither promoters nor group companies have any interest in the awarding authority and that the contract is not a related-party transaction.
Official Exchange Filing: Enviro Infra Engineers Limited
