Case Study: Financial Impact of Neglecting A Sewage Treatment Plant of 370 KLD in a Bangalore Apartment

Overview

A residential apartment complex in Bangalore, recently faced significant maintenance challenges in their Sewage Treatment Plant (STP), which has a capacity of 370 KLD. The inspection, conducted by Greentivity Enviro Solutions, revealed extensive issues due to long-term neglect, resulting in high repair costs. This case study explores the financial implications of these neglected maintenance tasks and serves as a cautionary example for Resident Welfare Associations (RWAs) to proactively manage STP facilities.

Inspection Findings

The inspection identified several critical defects across various components of the STP, including floating particles in tanks, corroded equipment, malfunctioning blowers, and inadequate filtration. Specific issues included:

1. Mechanical and Structural Deficiencies:
2. Equipment and Operational Failures:
3. Air and Exhaust Systems:

Proposed Upgrades and Associated Costs

Greentivity Enviro Solutions provided a detailed proposal outlining repairs, replacements, and necessary upgrades to ensure the STP meets operational and regulatory standards. Key recommendations included:

• Installation of new screens, fine bubble diffusers, and upgraded pumps.
• Replacement of corroded parts, such as handrails and valves.
• Service and repair of blowers, HVAC, and filtration systems.

The total estimated cost for these repairs and upgrades, inclusive of materials, labor, and GST, amounted to  (approx. $46,000 USD).

Financial Analysis of Neglect

This case demonstrates how deferred maintenance can lead to compounded costs:

1. Increased Repair Costs: Due to prolonged neglect, numerous components required full replacement rather than minor repairs, which significantly increased expenses.
2. Energy Inefficiency: Worn-out and corroded equipment leads to higher energy consumption, which escalates operational costs over time.
3. Compliance Penalties: Non-compliance with environmental standards, due to inadequate sewage treatment, can attract substantial fines from pollution control authorities, in addition to reputational damage.
4. Health and Safety Risks: Malfunctioning systems, such as the HVAC and chlorine dosing pumps, jeopardise the health of maintenance staff and residents, increasing potential liabilities.

Recommendations for RWAs

To prevent similar financial burdens, RWAs should implement proactive STP management strategies:

• Scheduled Maintenance: Regular inspections and servicing prevent minor issues from escalating into costly repairs.
• Budget Allocation: Establish a dedicated budget for STP maintenance, including funds for emergency repairs.
• Compliance Monitoring: Ensure STP operations align with local regulatory requirements to avoid fines.
• Professional Management: Contract experienced water treatment service providers for routine operation and maintenance, as they bring expertise in managing compliance and operational efficiency.

Conclusion

This Apartments case illustrates the high costs and operational disruptions resulting from neglected STP maintenance. Proactive management of STP facilities can save significant resources, ensure regulatory compliance, and foster a healthier living environment for residents. This case serves as a critical reminder to RWAs about the financial and social responsibilities of STP upkeep.

Here’s a breakdown of potential savings in water procurement costs if the Sewage Treatment Plant (STP) at this Apartment is repaired and maintained properly, eliminating the need to purchase water via tankers:

FrequencyVolume of Water (KLD)Cost per TKL (₹)Total Cost (₹)Daily320 KL₹ 2,000₹ 64,000Weekly2,240 KL₹ 2,000₹ 448,000Monthly (30 days)9,600 KL₹ 2,000₹ 1,920,000Quarterly (90 days)28,800 KL₹ 2,000₹ 5,760,000

Summary of Potential Savings:

• Daily Savings: ₹ 64,000
• Weekly Savings: ₹ 448,000
• Monthly Savings: ₹ 1,920,000
• Quarterly Savings: ₹ 5,760,000

This calculation emphasises the substantial financial burden of neglecting an STP, as regular repairs and efficient functioning of the STP could prevent such recurring expenses on water tankers. By maintaining their STP, RWAs can achieve significant cost savings and improve resource sustainability for their residents.

The table below calculates the payback period in days, weeks, months, and quarters based on these figures.

FrequencyDaily Savings from Water Tankers (₹)Cumulative Savings (₹)CAPEX Cost (₹)Payback PeriodDaily₹ 64,000₹ 64,000₹ 2,925,00046 daysWeekly₹ 448,000₹ 448,000₹ 2,925,0006.5 weeksMonthly₹ 1,920,000₹ 1,920,000₹ 2,925,0001.5 monthsQuarterly₹ 5,760,000₹ 5,760,000₹ 2,925,0000.5 quarters

Interpretation of ROI:

• Break-even Point: Approximately 46 days.
• Full ROI Period: Within 1.5 months, or 6.5 weeks.

With these savings, the capital expenditure for the STP repairs and upgrades would be recovered within approximately 1.5 months. This quick payback period highlights the financial benefits of maintaining a functional STP, enabling long-term savings after the initial CAPEX recovery.