VA Tech Wabag, Ion Exchange rally over 15% after NGT grim report on water pollution

Va Tech Wabag is a multinational player in the water treatment industry.

Shares of VA Tech Wabag and Ion Exchange climbed over 15 per cent on Monday amid reports that the National Green Tribunal directed 100 per cent treatment of sewage entering the rivers across the country by March 31 next year.

The NGT warned that if this is not done, the local bodies and concerned departments of the states and Union Territories (UTs) will be liable to pay compensation of Rs 5 lakh a month per drain in the case of river Ganga and Rs 5 lakh for default in commencement of setting up of sewage treatment plant.

Va Tech Wabag is a multinational player in the water treatment industry with market presence in India, the Middle East, North Africa, Central and Eastern Europe, China and South East Asia through its principal offices in India, Austria, the Czech Republic, China, Switzerland, Algeria, Romania, Tunisia, UAE, Libya and Macao.

VA Tech Wabag is also expecting to clock revenues of around Rs 3,000 crore in financial year 2020, according to reports.

While directing that an institutional mechanism be evolved for ensuring compliance of its directions, the NGT asked the chief secretaries of all the states and UTs to monitor the progress of the work, and at national level by the Secretary, Ministry of Jal Shakti with the assistance of National Mission for Clean Ganga and Central Pollution Control Board, according to PTI.

The NGT observed that world's major civilizations developed along rivers and without water there would be no human civilization.

The shares of the company closed 15.68 per cent higher at Rs 191.50 on BSE .

Shares of Ion Exchange (India), which is engaged in water and environment management business, closed 5.29 per cent up at RS 732.45.