All posts by vilnagpur

Transport and VIL

Roads, the prime mode of transportation in India carry almost 80 percent of the country’s passenger traffic and 65 percent of its freight. With a density of 0.66 km of highway per square kilometer of land India’s highway network is similar to that of the United States (0.65) and much greater than China’s (0.16) or Brazil’s (0.20). India boasts of 3.3 million Kms of highways, with 80,000 Kms of National highways and 1, 31,000 Kms of State highways. Indian roads experienced a 10.16% CAGR of growth of vehicles in the last five years. Arun Lakhani spotted this opportunity way back in 2000 and incorporated it in the projects for Vishvaraj Infrastructure limited (VIL) and tactically decided to stay focused on BOT projects. It made a modest start with the development of 8.3 Km Bypass road on BOT basis, which was one of the first BOT concessions awarded at that time. Those were tough times for the industry with stiff resistance from key stakeholders i.e. the commuters for paying toll for using the road. However, the concept matured well over time and VIL completed 4 projects well within stipulated construction time, the concession period for these range from 15 to 30 years. Mr. Arun Lakhani says keeping company with the nation on move is extremely important and hence we need to develop good transport in India.

For instance take the Warora – Chandrapur – Ballarpur Project that has been a forerunner in the transport sector at Vishvaraj Infra (VIL). It is a four laning 64 km of Warora to Chandrapur to Ballarpur to Bamni in the Chandrapur district of Maharashtra , under a Design, Build, Finance, Operate and Transfer (“DBFOT”) model. The Project SPV: Warora Chandrapur Ballarpur Toll Road Ltd jointly sponsored by , Vishvaraj Infrastructure Ltd. IL&FS Transportation Networks Ltd. and Diva Media Pvt. Ltd. It is a Public Works Department, Maharashtra. The project value is USD 115 Mn and the project has been active since January, 2015.

Other projects at Vishavaraj Infrastructure Limited with the transport sector are Chandwad – Manmad – Nandgaon Project, Malegaon – Manmad – Kopergaon Project and Fekri and VAPI over bridge Projects.

 

 

 

Sustainability & CSR By Mr. Arun Lakhani

Vishvaraj Infrastructure Ltd. (VIL) specializes in three Infrastructure sectors – Water, Waste Water and Transportation. VIL has been ground-breaking innovative PPP models in water infrastructure sector. VIL philosophy of creating value by removal of inefficiencies and ensuring win-win for all the stakeholders is in tune with the social nature of water projects. Understanding and focus on implementation details and awareness of last mile problems and their mitigation is strength of VIL to create value by removing inefficiencies from the system.

Arun Lakhani says it’s ‘People’- the fourth P that makes the critical difference to PPP (Public –Private Partnership).It’s the 4th P that powers PPP – PPP to 4P Model. Ever since the Indian economy was opened and the process of liberalization was set in, various private players added their might partnering with public enterprises in various sectors. PPP as a concept on paper brings in very good synergy of Private enterprise efficiency with Public ownership of assets. But in reality we see a trust deficit between the ultimate stakeholders, People on one hand and Government & Private 30 years can be a risk unless people are on boarded. Our answer to this situation is Involve / Integrate the Fourth P – People – citizens in the PPP Model enhancing its credibility. PPP can be very successful if the fourth P- People are integrated in the structure with openness and responsibility of communicating with larger masses. People as largest stakeholders in any PPP must participate to monitor the contracts done between the two Ps.

With the fourth P of People, PPP is enriched with a completely new dimension of a more humane face & greater sensitivity towards its largest stakeholder- the people. Every PPP project is conceived to benefit the People, but often in the dry domain of numbers this fact is lost sight of. The factoring in of this fourth P as a central focus has a completely transformative impact on the long-term success of the project. An analysis of failed PPP projects will bear out that the major cause of failure was the ‘People’ dimension being ignored. Without the active involvement of ‘People’ from conceptualization to the final execution no PPP project can hope for long-term success. In the current context taking ‘People’ on-board with open communication & transparency is a business imperative for the Private Partner rather than a CSR initiative. Water PPPs are Social Projects and for them to succeed, the roles of the stakeholders with People as integral part of the project shall be: P – Public – Policy Maker, P – Private – Efficiency improvement with investment, P – People – Communication & Monitoring. Communication, Transparency and On-boarding of the largest stakeholders “People” are more of a business need and mitigates many risks. Arun Lakhani goes on to say that in any project people’s voices matter and that’s a major reason as to why we need to filter in their take on any projects. We understand the problem through first hand source its better and gives authentic insight.

 

 

 

 

The Social Entrepreneur Arun Lakhani

A company that is truly ahead of its time, it needs a man who will take the company there. Mr. Arun Lakhani, chairman and managing director of Vishvaraj Infrastructure Limited (VIL) has had such a vision.

In his own words, his vision for VIL India is

“Making positive changes to the lives of individuals, society and environment at large, by creating a socially responsible enterprise”.

A positive alteration is seen not only through the leadership but also one which is clearly visible with their works is depicted from its varied water project portfolio. Mr. Arun Lakhani pursues water projects, as he realise by its very nature such projects will have a far greater social impact.

In the water sector VIL is proposing a unique win-win model which will create great value to stakeholders, governments and locals by eliminating any forms of inefficiencies from the current system. Our greatest fear in relation to water management is not inefficiencies rather the resource’s very scarcity.

His vision has seen to the execution and creation of innovation system solutions to bring about better water and waste water management. Over the years, VIL is trying to address some of these issues by creating water value chains across the user groups.  One of its major goals is to create cities that can receive water around the clock.

Going forward Vishvaraj Pvt Ltd. will thrive on waste water reuse and urban efficiency improvement projects similar to Nagpur, Magadi, Bidar, Basavakalyan, Shahabad and Yadgir. VIL, a leader in Urban Water reforms in India through has always looked to find ways of improving the livelihood of cities.

The project has been awarded including Nagpur 24×7 project was recognized with “Best Water Practices” award by the Prime Minister Narandra Modi during inauguration of Smart City program.  Arun Lakhani’s company has received global “Water deal of the year” award by GWI, London and also recognition from IFC, Washington DC, as “Top 10 emerging PPP projects in Asia Pacific” region for Nagpur project.

An indication of its attitude towards the industries is its recognition by many in the field. The firm won two major awards in the sector at the recent World Water Leadership Congress & Awards may play a huge role in the privatisation of water. The company won the prestigious Water Reuse Project of the Year and Mr Arun Lakhani, VIL’s chairman and managing director won the award for Outstanding Contribution to Water.

It sees great potential for reuse of treated waste water and in the process not only addresses urban treatment issue but also creates additional fresh water by way of diverting fresh water reservation of industries to urban users and agriculture.

As said, for a company to truly be ahead of its time, it needs a man who will take them there and Mr Arun Lakhani is reaching them there.

 

Arun Lakhani and Corporate Social Responsibility

It’s ‘People’- the fourth P that makes the significant difference to PPP (Public –Private Partnership). Ever since the Indian market was opened and the process of liberlisation was set in, various private players added their might partnering with public enterprises in various sectors. PPP as a concept on paper brings in very good synergy of Private enterprise efficiency with Public ownership of assets. But in reality we see a trust deficit between the ultimate stakeholders, People on one hand and Government & Private 30 years can be a risk unless people are on boarded. Our answer to this situation is Involve / Integrate the Fourth P – People – citizens in the PPP Model enhancing its credibility. PPP can be very successful if the fourth P- People are integrated in the structure with openness and responsibility of communicating with larger masses. People as largest stakeholders in any PPP must participate to monitor the contracts done between the two Ps. In the current context taking ‘People’ on-board with open communication & transparency is a business imperative for the Private Partner rather than a CSR initiative. Nagpur 24×7 and Nagpur 200 MLD STP Treatment and Reuse started out as business models but they have the essence of CSR as people were involved in the projects and their opinions were taken into consideration for the growth and development for the Water and Waste water projects.

 

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship or responsible business) is an outline of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active conformity with the spirit of the law, ethical standards and national or international norms. With some models, a firm’s implementation of CSR goes beyond compliance and engages in “actions that appear to further some social good, beyond the interests of the firm and that which is necessary by law.” The aim is to increase long-term profits and shareholder trust through positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions. CSR strategies encourage the company to make a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others. CSR is titled to aid an organization’s mission as well as serve as a guide to what the company represents for its consumers. Business ethics is the part of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. ISO 26000 is the recognized international standard for CSR. Public sector organizations (the United Nations for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar principles, but with no formal act of legislation. Chairman and Managing Director of Vishvaraj Infrastructure Limited (VIL India) Mr. Arun Lakhani says as a social entrepreneur I always believed being socially responsible and having a business that not only improves India’s development but also benefits the citizens of the nation is extremely important.

 

24x7-Water-Supply1-Vishvaraj Infrastructure Limited

Veolia France & Arun Lakhani -Orange City Water

Orange City Water (OCW) will invest 18 million euros in the project to renovate the city’s six water production plants and repair the 2,500 km of network. The production capacity of the system managed by OCW will eventually be close to 750 million liters a day and leakage from the network, which is currently 60%, will gradually be lowered to international standards. This will be a first in India.

Arun Lakhani says India has vast prerequisite of Infrastructure building and development. The PPP route was established in last decade also saw some lean time. With New government initiative the PPP has again come with better risk sharing medium between private and public. Vishvaraj Infrastructure Limited saw this opportunity and decided to have a model for 24×7 water supply. Orange City Water also popularly known as the Nagpur 24×7 Water supply along with Veoila France made this happen.

Vishvaraj Environment Pvt. Ltd. (VEL) is a subsidiary of Vishvaraj Infrastructure Ltd. (VIL), a transportation infrastructure development company from India. With a humble start over a decade ago with development of road project on BOT model, today VIL is successfully managing four concession contracts in transportation (road) sector and the fifth contract is under execution. Over this decade long journey, VIL has acquired knowledge to evolve systems in sectors where society at large is involved and all stakeholder’s interests need to be understood and addressed, ensuring a win-win situation for all, more so in a developing and culturally diverse country like India. VIL proposes to put to use this knowledge in few more sectors, water being a major focus area through its subsidiary Vishvaraj Environment. Vishvaraj Environment foresees a great opportunity for the private sector to participate in financing, building and maintaining urban water supply infrastructure projects and has geared itself to build the capacities for the future.

Veolia Water India is a wholly owned subsidiary of Veolia Water India Africa, which covers Africa, the Middle East and the Indian subcontinent. Veolia Water India Africa is 80.55% held by Veolia Water, with the remainder being held by the International Finance Corporation (IFC), the World Bank Group institution in charge of operations with the private sector, and by PROPARCO, a subsidiary of the French development aid agency with a similar role. Veolia Water India Africa provides 3.16 million people with water and 1.42 million with electricity. It employs 2,191 people and offers partners its technical and managerial expertise to supply specific solutions in regions affected by water stress. Veolia Water, the water division of Veolia Environnement, is the world leader in water and wastewater services. Specialized in outsourcing services for municipal authorities, as well as industrial and service companies, it is also one of the world’s major designers of technological solutions and constructor of facilities needed in water and wastewater services. With 96,651 employees in 69 countries, Veolia Water provides water service to 103 million people and wastewater service to 73 million. Its 2011 revenue amounted to € 12.617 billion.

 

VIL – Malegaon – Manmad – Kopergaon Project

Roads, the predominant mode of transportation in India carry almost 80 percent of the country’s passenger traffic and 65 percent of its freight. With a density of 0.66 km of highway per square kilometer of land India’s highway network is similar to that of the United States (0.65) and much greater than China’s (0.16) or Brazil’s (0.20). India boasts of 3.3 million Kms of highways, with 80,000 Kms of National highways and 1, 31,000 Kms of State highways. Indian roads experienced a 10.16% CAGR of growth of vehicles in the last five years. Malegaon is a city and a Municipal Corporation in Nashik District in the Indian state of Maharashtra. Malegaon is second largest city of Nashik district after Nashik city itself. Malegaon is located at the confluence of Girna and Mausam rivers, at elevation of 438 metres (1437 feet) at 18.42°N 77.53°E. It is located at around 280 km northeast of state capital Mumbai. It has good connectivity with nearby cities like Nashik, Manmad, Mumbai and Dhule. Manmad pronunciation is one of the cities in Nasik district in the state of Maharashtra state in India. It is the third largest city in Nasik district, with a population of approximately 200,000. It geographically lies within Nandgaon Tehsil in Nashik District. Though it is bigger in area as well as in population compared to most of the Tehsils in the district, it does not have a Tehsil office. Manmad Municipal corporation Provides water after 15 days by pipeline. Kopargaon is a town and municipality located in the Ahmednagar district of the Indian state of Maharashtra. Kopargaon is located about 14 kilometres (8.7 mi) from the holy town of Shirdi. Kopargaon Itself is also a holy place. The only temple of Daityaguru Shukracharya (Demons Guru) is located at Kopargaon. During that time a vidya called Sanjivani Viday was performed here to make alive to dead person. The main feature of this temple is any of the pooja, vidhi, marriage, narayan-nag bali poojan, kal-sarpa poojan can be performed here without any muhurta, and with best effects as said in Hindu holy books. Datta Par located at the banks of river Godavari is mentioned in Guru Charitra of Sai Baba, the temple of Datta Guru was established with the hands of Sri Sai Baba himself in year around 1910-1915. Vishvaraj Infrastructure Limited (VIL India) spotted this opportunity and created a transport project for Malegaon – Manmad – Kopergaon.

Augmentation of 75.6 km of Malegaon – Manmad – Kopergaon in Nashik District of Maharashtra, under a Built, Operate and Transfer (“BOT”), Concession Period is 21 Years. Project SPV is Malegaon Manmad Kopargaon Infrastructure and Toll Road Pvt. Ltd. is consortium comprising of Essel Group and VIL Group and Public Works Department, Maharashtra. The Project Value is USD 20 Mn and its operational since 2007.

 

 

Orange City Water (Nagpur 24×7)

India has vast prerequisite of Infrastructure construction and growth. The PPP route was established in last decade also saw some lean time. Arun Lakhani the Chairman and Managing Director of Vishvaraj Infrastructure Limited (VIL) has been a supporter of PPP model, and has established track record in Road and highways sector.  With Urban Infrastructure venture in Water, it is today the only Indian Utility with ongoing projects in Water distribution as well as Waste water treatment and Reuse. VIL India is also popular for the Orange City Water (OCW) project is a joint venture of Veolia Water India Pvt. Ltd., the World Leader in Water Business and Vishwaraj Environment Ltd., one of India’s leaders in the infrastructure development. Established in November 2011, the organization is particularly established for the execution of Nagpur Municipal Corporation’s Uninterrupted Water Supply Scheme, popularly known as 24×7 Water Supply Scheme, under Central Government’s ambitious JnNURM (Jawaharlal Nehru National Urban Renewal Mission).

We offer basic services to our customers throughout Nagpur and contribute to the fitness and wellbeing of the community. Our services involve planning, constructing, operating, treating, maintaining and distributing water resources throughout Nagpur. We always look forward to protect our surroundings from any health hazards. We are strong-minded and have a clear vision of every aspect. Looking at the future, we aim to provide 24×7 water supplies with minimum interruptions to the flow of water.

The Vision was to ensure 24×7 drinking water supply at optimum pressure and of good quality, at reasonable rate, to every citizen of the city of Nagpur while ensuring sustainable development and management of the Nagpur’s water resources. Orange City Water has been handling Nagpur city’s water operations since March 2012. It is responsible for water operations from raw water catchment till bill collection, all over Nagpur.

With a workforce of about 400 employees on roll and still counting, Orange City Water Pvt. Ltd. has become the best service provider of waterworks in Nagpur. Apart from the on roll employees a large team of outsourced employees is supporting the routine organizational work. The company delivers high-quality, necessary services to ensure the provision of safe, clean drinking water all over Nagpur. We meet our clients’ needs by nurturing local relationships that are conducive to sustainable water management.

 

Orange City Water is also managing the Nagpur Municipal Corporation’s Water Treatment Plants at Gorewada, all the Elevated Service Reservoirs, Ground Service Reservoirs, Master Balancing Reservoirs commonly known as Water Tanks. Apart from the above major on- site departments the organization is well equipped with a strong back office support with departments like HR, Finance, PR, Administration, etc. Considering the mammoth job the company has to manage, it is expanding its base in all the ways horizontally and progressing vertically.

The Nagpur 24×7 or OCW has made a tremendous impact on the lives of citizens of Nagpur with providing them with pressurized round the  clock water supply for all the zones of the city along with equitable distribution of water supply.

Nagpur 24×7 a success story by Arun Lakhani

Mr. Arun Lakhani had a vision for Vishvaraj Infrastructure Limited (VIL) as he considered Water Supply is a project that needs to be worked on and developed for a billion+ people in India. Water supply to be explained in simplified terms is the provision of water by public utilities, commercial organizations, community activities or by individuals, usually via a system of pumps and pipesIrrigation is covered separately.

At Vishvaraj Infrastructure Limited we see ourselves as social entrepreneurs since Water, Waste Water and Transport; the sectors in which we have built our reputation are closely interwoven with the lives of people. As business, apart from value creation for share holders they also impact happiness quotient of the people, thus offering enormous satisfaction to us for our life transforming work. The rapidly urbanizing Indian population is expected to reach a figure close to 600 million urban people by 2031. This massive transition is creating serious challenges for urban planners and ULBs especially that of ensuring quality water supply to these citizens. Indian cities have for long lived with intermittent water supply systems riddled with a variety of problems ranging from high levels of NRW to contamination issues.

The areas to be in focus in 24×7 water supply are as follows: Non-Revenue Water ranging from 50 to 75%, Water supply coverage Only about 64%, Intermittent Supply & Poor billing mechanism. As a solution to this situation several reforms have been initiated by the government which include introduction of performance linked PPP contracts, up gradation of existing ageing assets, 100% metering and efficient operation and maintenance of the supply system. Vishvaraj Infrastructure Ltd. provides global solutions that contribute to sustainable development in the water sector through innovation in the design, construction and operation of drinking water treatment plants, distribution system reforms, etc.

Vishvaraj Infrastructure Limited Water supply success stories: Nagpur 24 X 7 – Nagpur is the 3rd largest city & winter capital of Maharashtra state, Nagpur is India’s loath largest city with a population of over 2.5 million people. It became the first city of its size in the country to outsource its water supply to a private operator under the PPP model for 25 years. Nagpur 24 x 7 Water Supply

First Full City Continuous water supply Project in India

The Project gives emphasis on Operator’s Performance; the Operator remuneration is linked with the technical and commercial efficiency of his services.

  • Delinking of consumer tariff and Operator’s fees
  • Employees and Unions – Job security of government employees maintained
  • Included ‘economically challenged segment of society’ in Service Level Agreement (SLA) for connecting households
  • Sovereign rights with N MC —Tariff, sole rights for new house service connection & disconnection and ownership of assets

Other projects in the pipeline for Vishvaraj Infrastructure Limited are Magadi 24×7 in Ramanagara district in the state of Karnataka. Bidar & Basavakalyan 24×7. The two towns of Bidar and Basavakalyan are located in the Bidar district of Karnataka.

Pressurized water supply throughout India is essential for daily survival. It’s a basic necessity for every living being. VIL aims to overcome this problem and make India a country with 24×7 Water Supply.

 

Arun Lakhani and the VIL Team

Vishvaraj Infrastructure Ltd. (VIL) specializes in three Infrastructure sectors – Water, Waste Water and Transportation. VIL has been pioneering innovative PPP models in water infrastructure sector. VIL philosophy of creating value by removal of inefficiencies and ensuring win-win for all the stakeholders is in tune with the social nature of water projects. Understanding and focus on implementation details and awareness of last mile problems and their mitigation is strength of VIL to create value by removing inefficiencies from the system.

At VIL we have a very diverse culture and that is seen in the people on the VIL team. The advisory team has:

Nitin Raichura. Executive Director, BE (Mech.) Nitin brings more than 30 years of rich experience in the fields of operations management and strategy. Prior to VIL he has worked for well known Corporations like Gammon Tunkeys Limited, Jyoti Ltd, Kidde India Ltd. and Gunnebo India Ltd.

Dr. Olivia Jensen. Senior Research Fellow, Institute of Water Policy at Lee Kuan Yew School of Public Policy Olivia Jensen, an economist specializing in the water sector with seventeen years professional experience as a consultant and academic. Dr. Jensen holds a PhD and MSc in Development from the London School of Economics, MA in International Relations and BA in Politics, Philosophy and Economics from Oxford University (Magdalen College). She is currently working as senior research fellow at the Institute of Water Policy at Lee Kuan Yew School of Public Policy. Dr. Jensen was the Asia Editor of Global Water Intelligence before joining LKY. She has worked as a consultant for both public and private clients including the World Bank, OECD and UNEP. She is also the author of numerous authoritative reports, academic papers and articles on the Asian water sector, Public Private Partnership (PPP) contracts, and economic and environmental regulation.

Prof V. Srinivas Chary. Dean of Research and Management Studies, Administrative Staff College of India (ASCI), Hyderabad. Prof V. Srinivas Chary is the Dean of Research and Management Studies at Administrative Staff College of India (ASCI), Hyderabad, India, specialises in governance, institutional reforms and capacity building for improvement in urban service delivery. He has over 23 years of professional experience in the areas of urban infrastructure and has extensively worked on water and sanitation sectors, urban environmental management, PPP etc. An engineer, urban planner and management professional by training, Prof Chary has led over 150 advisory, consulting and research assignments in the areas of policy development, municipal reforms, city development planning, 24-7 Water Supply, Universal Sanitation, PPP, Urban Poverty Reduction, Tariffs And Cost Recovery Strategies, Benchmarking, Capacity Enhancement Strategies, Change Management and Urban Environmental Management – both in India and South Asia. Prof Chary led urban service level benchmarking programme of the Government of India involving over 1500 municipalities. As a member of the urban sanitation taskforce of the MoUD, he played a catalytic role in the formulation of the National Urban Sanitation Policy of the Government of India.

Nagpur 24×7 And Continues Water Supply

Vishvaraj Infrastructure sees itself as entrepreneurs in the Water, Waste Water and Transport industry; the sectors in which we have built our name are closely interwoven with the lives of the citizens. As business, apart from value creation for share holders they also impact happiness quotient of the people, thus offering massive satisfaction to us for our life transforming work. The rapidly urbanizing Indian population is expected to reach a figure close to 600 million urban people by 2031. This massive transition is creating serious challenges for urban planners and ULBs especially that of ensuring quality water supply to these citizens. Indian cities have for long lived with irregular water supply systems riddled with a variety of troubles ranging from high levels of NRW to contamination issues.

Water supply to be explained in beginner’s terms is the provision of water by public utilities, commercial organizations, community endeavors or by individuals, usually via a system of pumps and pipes. Irrigation is covered separately. Mr. Arun Lakhani had a vision for Vishvaraj Infrastructure Limited (VIL) as he considered Water Supply is a project that needs to be worked on and developed for a billion+ people in India.