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Chennai, Sept. 13

THE Chennai Metropolitan Water Supply and Sewerage Board (Metrowater) on Tuesday signed a bulk water purchase agreement with IVRCL Infrastructures & Projects Ltd, a Hyderabad-based infrastructure company that has bagged the contract to construct a desalination project for Chennai.

Mr V. Thangavelu, Managing Director, Metrowater, signed the agreement with Mr E. Sudhir Reddy, Vice-Chairman and Managing Director, IVRCL.

Under the agreement, Metrowater will provide 60 acres of land at Minjur, north of Chennai, for constructing a 100 million litres a day seawater desalination project.

The project will be on a design, build, own, operate and transfer basis, according to a State Government press release.

IVRCL, which will use reverse osmosis process for the desalination plant, will receive technical collaboration from Befesa Construccion y Tecnologia Ambiental of Spain.

According to the press release, the company will have to achieve financial closure, obtain statutory and other clearances, commence and complete the project within 15 months.

Metrowater will purchase desalinated water for 25 years from the date of commercial operation at the rates stipulated in the agreement.

IVRCL will deliver the water at Minjur from where Metrowater will pump it to Red Hills and then to the city grid.

(This article was published in the Business Line print edition dated September 14, 2005)
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