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Delhi Jal Board saves Rs 100 Crore in the Sewage Treatment Plant Project

January 11, 2017 08:44 PM

Delhi Jal Board has made a saving of Rs 100 crore in the execution of Asia’s largest Sewage Treatment Plant (STP) at Coronation Pillar (near Mukundpur) in Delhi.

Salient features of this STP are as follows :

  1. Coronation Pillar STP is Asia’s largest and cheapest Sewage Treatment Plant 
  2. The Plant can treat up to 70 MG of untreated sewage per day, which would otherwise flow into the Yamuna.
  3. To put it in context: Approximately 700 MG of waste water is generated in Delhi per day and the Coronation STP is responsible for treating a gargantuan ~10% of the waste water generated in Delhi
  4. The Coronation plant is an example of an “Advanced STP”, which has state-of-the-art phosphate and nitrogen removal facilities
  5. The STP is designed to treat water up to BOD/TSS level of 10/10
  6. The plant also has extensive sludge treatment facilities and elaborate provisions for generating power
  7. Unknown to many, the DJB faced huge land constraints, while planning this project, due to the 45 acres of land needed for the STP, being available in 2 separate parcels of 35 acres and 9 acres each, instead of a contiguous piece of land. This significantly increased the difficulty in planning and execution of the project.

 

Given below are the details of how such a huge and unprecedented saving has been achieved in this state-of-the art project :

 

  1. In the old Nilothi STP Project, the DJB incurs a cost of Rs. 13.075 Crores to treat 1 MG (Mega Gallon) of sewage water per day
  2. In the new, Coronation Pillar STP, the DJB incurs a cost of Rs. 7.35 Crores to treat 1 MG (Mega Gallon) of sewage water per day
  3. The difference in these unit costs is = Rs. 5.72 Crores
  4. Thus, in the Coronation Pillar STP, the DJB incurs Rs. 5.72 Crores less to treat 1 MG (Mega Gallon) of sewage water per day, as compared to the Nilothi STP
  5. The capacity of the Coronation Pillar STP is 70 MG per day
  6. This saving of Rs. 5.72 Crores, when extrapolated to the capacity of the Coronation Pillar Plant, translates to net savings of Rs. 400 Crores (70 MG x Rs. 5.72 Crores) to treat 70 MG of sewage water per day. Now to understand the cost savings incurred, let us have a look at some old projects and compare them with the Current Coronation Pillar STP project:

S.No.

Project Name

Projected Cost

Final Award

Cost

Year

 

Capacity

(MGD)

Cost per unit MGD

1

Coronation Pillar STP

Rs. 602 Crores

Rs. 515 Crores

2016

70

Rs. 7.35 Crores

2

Pappankalan STP

Rs. 64 Crores

Rs 243.5 Crores

2012

20

Rs. 12.175 Crores

3

Nilothi STP

Rs. 64 crore

Rs. 261.5 Crores

2012

20

Rs. 13.075 Crores

 

The following things emerge from the data above:

  1. Historically, there exist many precedents to attest to the fact that projects by the Delhi Jal Board (and other government organizations) have been awarded at higher final costs as compared to the initial projected cost.  This is apparent in the difference in the Projected Cost and the Final Award Cost in Pappankalan STP and Nilothi STP, from the table above. However, the Coronation Pillar STP bucked this trend and instead was made for 87 Crores less than the projected cost.
  2. As a result of these higher cost projections, the cost per unit MGD treated for both Pappankalan STP and Nilothi STP is significantly higher than the cost per unit MGD for the Coronation Pillar STP.
  3. The difference in cost per unit MGD treated, for Coronation Pillar STP and Nilothi STP, is: 13.075 – 7.35 = Rs. 5.72 Crores per MGD treated
  4. This translates into a saving of Rs. 400 Crores (70 x 5.72)while building the Coronation Pillar STP.
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