The Bulk Water Supply project has got the approval and funding of the Central Government in PPP mode under the Viability Gap Funding (VGF) scheme. The revenue sharing agreement was signed between Odisha Government’s Public Health Engineering Organisation and MEIL (Bhubaneswar) Bulk Water Supply Project, formed by consortium of Megha Engineering & Infrastructures and Koya & Company Construction.
The project, estimated at Rs 188 crore, will be operational by April, 2017 at an estimated cost of Rs 188 crore. It would be financed by Odisha Urban Infrastructure Development Fund with a commercial loan of Rs 40 crore, VBF grant of Rs 37.5 crore and State Government grant of Rs 12.5 crore.
The state government has allotted land for the project at Mundali, which would use existing pipelines that were laid during the commissioning of Naraj Water Supply Project in 1995 apart from a new network surrounding Mendhasal, Khurda and Jatni.The project having a pumping capacity of 20 hours a day will draw water from Mahanadi, would store it in the master balancing reservoir at Mendhasal after treating it at the intake source in Mundali and then would be distributed to the designated destinations.