Namami Gange Project opens up new opportunity for this smallcap; stock up 8%

Shares of Va Tech Wabag rallied over 8 per cent in Thursday’s morning trade after the water treatment player informed the bourses that it secured an order worth Rs 1,187 crore under the Namami Gange Project.

The company on Tuesday said it inked a new project with the Government of Bihar to set up a sustainable wastewater infrastructure programme.

VA Tech has signed the agreement under the National Mission for Clean Ganga to design, build and operate sewage treatment plant of 150 MLD in Digha and Kankarbagh zones of Patna.

Upon completion, the project would ensure a cleaner and healthier ecosystem for over 50 per cent of the population in Patna, the city-based company said in a statement.

The company would be responsible for the sewerage infrastructure in four out of the six zones of Patna (Pahari, Karmalichak, Digha and Kankarbagh).

The agreement was signed between National Mission for Clean Ganga, Bihar Urban Infrastructure Development Corporation (BUIDCO) and VA Tech WABAG special arm DK Sewage Project.

Commenting on the order win, Varadarajan S, Director and Chief Growth Officer, said “With this repeat order in Bihar, Wabag will now be responsible for sewerage infrastructure in four out of the six zones of Patna, thus testifying the trust reposed by NMCG and BUIDCO on Wabag. This project is an important step in realising the vision of ensuring 100 per cent sewage collection and treatment in Patna. Wabag is already executing projects for BUIDCO in Pahari and Karmalichak. All these projects, on completion, will ensure a cleaner and healthier ecosystem for over 50 per cent of the population of Patna.”

The shares of the company closed 7.24 per cent higher at Rs 193.40 on BSE.