New Tirupur Area Development Corp: Investor writes to CM, Finance Minister, seeking CAG audit
The Hindu
Aidqua Holdings (Mauritius) Inc, a private equity investor, has alleged the siphoning of funds by Infrastructure Leasing and Financial Services Limited
Aidqua Holdings (Mauritius) Inc, a private equity investor in New Tirupur Area Development Corporation Limited (NTADCL), has written to Chief Minister M.K. Stalin and Finance Minister Palanivel Thiaga Rajan, alleging the siphoning of funds by Infrastructure Leasing and Financial Services Limited (IL&FS), a major shareholder in the company. It has also sought an audit by the Comptroller and Auditor General (CAG) and other regulatory bodies.
Incorporated in 1995, NTADCL is a public-private partnership that provides water services on commercial terms. It is the first private water supply and sanitation project and one of the largest private investments in urban infrastructure in the country.
Aidqua has, for long, objected to the deductions made by IL&FS while disbursing money to the project, as well as NTADCL’s corporate debt restructuring proposal.
NTADCL was formed as a special purpose company to develop infrastructure in Tiruppur city. In 2000, Tamil Nadu Water Investment Company Ltd (TWIC) was formed as a promoter company to route all investments into NTADCL. The Government of Tamil Nadu owns a 46% stake and IL&FS 54% in Tamil Nadu Water Investment Company Ltd.
In 2000, a concession agreement was signed among the Tamil Nadu government, NTADCL and Tirupur City Municipal Corporation (TCMC).
As per the agreement, NTADCL was allowed to draw water from the Cauvery basin with a capacity of 185 million litres per day, which was expandable up to 250 million litres per day.
The project cost was estimated at ₹1,023 crore, and financial closure was done in March 2002. It was expected that the project would recover its debt and equity investments primarily from the sale of water to industries, at 115 million litres per day.
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