VA Tech WABAG has secured a significant contract from the Chennai Metropolitan Water Supply and Sewerage Board for a major water treatment facility in Chennai. The Letter of Award covers the refurbishment, finance, operate, maintain and transfer of a 45 Million Litres per Day Tertiary Treatment Reverse Osmosis plant at Kodungaiyur, to be executed under Public-Private Partnership mode.

Project Details and Scope

The TTRO plant at Kodungaiyur was originally developed by CMWSSB in 2019 to supply high-quality treated wastewater to industries in the Manali–Ennore and Manali–Minjur industrial corridors in Chennai. Under the new contract, WABAG will undertake comprehensive refurbishment and upgradation of the existing facility to restore its full treatment capacity.

Strategic Significance

This contract reinforces WABAG's position in advanced water recycling and reuse solutions. The company is already operating the 45 MLD TTRO facility at Koyambedu, Chennai, which was designed, built, and commissioned by WABAG in 2019 to supply high-quality recycled water to industrial consumers. Additionally, WABAG operates a 40 MLD TTRO facility in Ghaziabad under PPP mode, supplying treated water to multiple industries in the Sahibabad Industrial Area.

Management Commentary

S Varadarajan, Whole Time Director & Chief Growth Officer, commented on the development: "We are delighted to secure this prestigious Recycle & Reuse project from our valued client, CMWSSB. We thank them for their continued trust and confidence in our technological expertise and execution capabilities. This project further strengthens our leadership in the Indian water sector and reinforces our position at the forefront of water recycling and reuse."

Order Classification Framework

WABAG categorizes its orders based on value thresholds:

Contract Terms and Conditions

The project involves refurbishment, finance, operate, maintain and transfer arrangements under Public-Private Partnership mode. WABAG will ensure reliable supply of treated water meeting stipulated quantity and quality standards throughout the operational period. The contract supports sustainable industrial water management and Chennai's transition towards a circular water economy.

This mega order award demonstrates CMWSSB's continued confidence in WABAG's technological expertise and execution capabilities in the water treatment sector. The project aligns with sustainable water management practices and industrial water reuse initiatives in the Chennai metropolitan area.

VA Tech Wabag Limited has received a GST demand order from tax authorities in Uttar Pradesh related to alleged excess Input Tax Credit claims for the financial year 2019-20. The company disclosed this development through a regulatory filing under SEBI listing regulations.

GST Demand Details

The demand order dated March 06, 2026, was issued by the Office of the Deputy Commissioner, GST Commissionerate, Uttar Pradesh under Section 74 of the CGST Act, 2017. The order addresses alleged excess ITC claims for FY 2019-20.

Company's Response and Impact

VA Tech Wabag has indicated that it will pursue appropriate legal remedies against the GST demand order. The company plans to file an appeal with the appropriate authority to contest the order. According to the regulatory disclosure, the company has assessed that there is no material impact on its financial, operations, or other activities due to this demand.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. Company Secretary and Compliance Officer Anup Kumar Samal signed the regulatory filing on behalf of the company.

Next Steps

The water treatment solutions provider will now focus on preparing its legal challenge against the GST demand order. The company's legal team will work on filing the appeal with the appropriate GST appellate authority to contest the allegations of excess ITC claims for the specified financial year.