In Salem, Tamil Nadu, SUEZ will serve over 1 million people with quality drinking water, making it the Group’s largest water supply contract in India
- SUEZ announces that it has won a 25-year concession contract to provide water services to more than one million residents of Salem, in the state of Tamil Nadu. The Letter of Award provides for a period of 45 days for the parties to enter into the concession contract.
- This EUR 456 million contract procured by the Salem City Municipal Corporation (SCMC) will strengthen Salem’s urban water infrastructure, through rehabilitation and modernisation works, to deliver 24/7 technology-enabled water supply services to the population.
- Salem water supply concession contract will be India’s largest project to be executed by SUEZ. It will bolster the Group’s leading position in the Indian water sector to provide sustainable water services and build resilient infrastructure in rapidly growing cities.
A city-wide water distribution contract serving 1 million people
As of 2027, SUEZ will be responsible to distribute high-quality water throughout the entire city of Salem, covering a 91 km2 area and serving over 1 million people. This extensive contract comprises comprehensive rehabilitation and modernisation of Salem’s water supply system:
- Rehabilitation of the city’s intake structures, water treatment plants and pumping stations;
- Replacement and strengthening of 1,800 km ageing transmission and distribution pipelines;
- Construction of 26 new service reservoirs, along with rehabilitation of 39 old reservoirs;
- Replacement of existing service connections, along with installation of water meters. By the end of the concession contract, 234,634 houses will be connected to Salem’s water system
- Customer services, meter reading, and billing support;
- Deployment of advanced digitisation systems, including SCADA and automation.
These investments will be supported by strong operational discipline to deliver 24/7 water services to the citizens of Salem, while ensuring long-term sustainability, efficiency, and measurable service improvements. The project will be performance-based, with defined KPIs focused on delivering continuous water supply, 20% reduction of non-revenue water (NRW) by 5 years and 10% by 10 years, 90% timely resolution of customer complaints, metering, billing and revenue collection backed with strict compliance with water quality standards.
A 25-year concession contract to deliver service quality with measured KPIs
Structured as a 25-year concession contract, the agreement comprises design, construction and operation of Salem’s water supply system. It is divided into a 5-year study and construction period, which includes taking over operation and maintenance (O&M) of existing assets, and a 20-year O&M period. Ownership of existing and new assets will remain in the hands of the municipal corporation throughout the concession period.
For the past eight years, SUEZ has been successfully operating water distribution concession in the city of Coimbatore, Tamil Nadu state, serving 133 million L/day water to 1 million people. Signing this new concession contract with Salem City Municipal Corporation underlines the strength of this public-private partnership model in delivering reliable and sustainable water services to Indian municipalities to address the rising issue of water scarcity in the country.
With around 10% share of municipal water market, SUEZ is leading India’s water space. Through its infrastructure and network services, it delivers safe drinking water and wastewater services to 65 million people daily – approx. 13% of India’s urban population.
We are honoured to partner with Salem City Municipal Corporation in transforming the city’s water distribution network into a resilient, future-ready system. This 25-year concession reflects the growing confidence of Indian cities in performance-based, digitally enabled water management models and underscores SUEZ’s commitment to supporting rapidly growing cities with resilient urban infrastructure to deliver long-term water management solutionsPierre Pauliac , EVP International
SUEZ presence in India:
- 300 state-of-the-art water and wastewater treatment infrastructure delivered;
- 9,000 km of 24/7 water distribution network managed across 10 cities – including 6,000 km constructed by SUEZ;
- The plants built and/or operated by SUEZ in India produce 7.5 billion L of drinking water per day and treat 2.8 billion L of wastewater daily, while generating 108 GWh of energy per year, strengthening circular economy outcomes;
- The company is currently managing more than 50 active contracts across India, with 7 projects under construction.