The Hindu Business Line : IVRCL Infra mulls second desalination plant in Chennai

Future plans
IVRCL, which is working on a range of infrastructure projects in Tamil Nadu, will invest over Rs 1,400 crore through the build-operate-transfer route this year.
This would increase to over Rs 5,000 crore in the coming few years.

MR E. SUDHIR REDDY

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Chennai Feb. 24 IVRCL Infrastructures & Projects Ltd, which is setting up a seawater desalination plant in North Chennai, hopes to set up a second such facility to the south of the city. The company also announced plans to enter property development, with `entry-level' housing projects in major cities.

At a press conference here, Mr E. Sudhir Reddy, Chairman and Managing Director, IVRCL, said the company was examining the options of setting up a second desalination plant to the south of Chennai.

Construction biz

The group is also expanding in the construction business through IVR Prime Urban Developers Ltd.

It will unveil its plans in 45 days with a series of construction projects in Chennai, Hyderabad, Pune and Delhi.

It has a 2,400-acre land bank and plans to develop over 52 million sq. ft. of built-up space.

The company also plans to enter port development and mining projects.

IVRCL, which is working on a range of infrastructure projects in Tamil Nadu, will invest over Rs 1,400 crore through the build-operate-transfer route this year.

This would increase to over Rs 5,000 crore in the coming few years, he said.

On the desalination project, Mr Reddy said IVRCL in partnership with Befesa, Spain, has floated Chennai Water Desalination Ltd, to set up a Rs 510 crore, 100-million litre a day, seawater desalination facility in Minjur, North Chennai.

The Tamil Nadu Chief Minister, Mr M. Karunanidhi, is to lay the foundation stone for the project on Sunday.

It will start operations from June 2008.

Project details

Mr D. Venkatasubramaniam, Head-Chennai Region, IVRCL, said the 25-year design-build-own-operate-transfer project, will supply water to Chennai Metropolitan Water Supply and Sewerage Board (Metrowater), at Rs 48.66 a kilolitre — cheapest among the projects of its kind.

IVRCL holds a 75 per cent stake in Chennai Water Desalination Ltd, and the balance is with Befesa.

The equity is Rs 138 crore and the rest has been raised through bank loans.

The project at Minjur will come up on 60 acres about 6 km north of Ennore Port.

On the second desalination plant, he said that IVRCL was looking at potential sites to the south of Chennai. Preliminary discussions are on with the Tamil Nadu Industrial Development Corporation, which has evinced interest in a joint venture.

Spain is among the earliest to adopt desalination technology. Befesa recently bagged a major order for a project in China.

IVRCL is a Hyderabad-based listed company with a turnover of Rs 1,800 crore.

Befesa, Spain, is an international player in environment and water treatment projects with a presence in over 70 countries, with a total turnover of over 2 billion.

Mr Joaquin Fernandez de Pierola Marin, International Director, Befesa, said that all the largest cities in the world including London, San Diego and Barcelona were opting for desalination projects to augment water supply. Spain is among the earliest to adopt desalination technology. Befesa recently bagged a major order for a project in China.

IVRCL is a Hyderabad-based listed company with a turnover of Rs 1,800 crore. Befesa, Spain, is an international player in environment and water treatment projects with a presence in over 70 countries, with a total turnover of over 2 billion.

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