The Hindu Business Line : Chennai desalination plant capacity likely to be doubled

Chennai, April 28 The State Government is considering doubling the capacity of the sea water desalination project coming up in North Chennai, according to sources.

The Rs 540-crore project being set up on a DBOOT (Design-Build-Own-Operate-Transfer) basis by the Chennai Water Desalination Ltd (CWDL) has a capacity to produce 100 million litres a day (mld) of freshwater from seawater. It is likely to be expanded to produce 200 mld with an additional investment estimated at about Rs 700-750 crore.

Expansion in the scope of the project by CWDL is being contemplated because of the rapid increase in industrial investments and development happening in the areas in North Chennai and to the north of Chennai, sources said.

CWDL is a special purpose vehicle floated by the Hyderabad-based infrastructure company IVRCL in partnership with Befesa of Spain. IVRCL holds 70 per cent stake in the company. The project is being done for the Chennai Metropolitan Water Supply and Sewerage Board (Metrowater) with which CWDL has a 25-year agreement to supply freshwater.

A bulk water purchase agreement between the two provides for Metrowater to buy processed water at Rs 48.66 a kilolitre.

Sources say that the point under consideration is the speed with which additional capacity can be brought on line, all the clearances are in place except that from the Union Ministry of Environment and Forests, and the escalation clauses for the ongoing project could be the basis for the expansion.

CWDL’s ongoing project for Metrowater is expected to start trial production by August and go onstream in December. It was originally scheduled for completion by mid-2008. Rough seas and unexpected rains early this year hit the schedule of laying intake water lines and dredging off shore, the sources said.

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