TN gives administrative sanction for Rs 1371.86 crore third desal plant

150 MLD plant to be funded by state govt
C Shivakumar
Chennai:

The city’s dream of third desalination is going to be realised with
Tamil Nadu government giving administrative sanction for setting up
150 MLD sea water reverse osmosis desalination plant at Nemelli along
East Coast Road at a cost of Rs 1371.86 crore.



The administrative sanction to the project was accorded by the state
government after delay by Centre to release funds as the New Urban
Renewal Mission schemes and its guidelines are yet to be formulated by
the Centre.



The desalination plant, built in 10 acres of land, will quench the
thirst of extended areas of South and Western Chennai.



The project was announced by then Chief Minister of Tamil Nadu J
Jayalalithaa on the floor of the assembly on April 16, 2013 to meet
the additional requirement of water for the expanded Chennai city.



The sanction also comes when the storage in reservoirs supplying water
to city is dwindling. Currently, the city is dependent on Krishna
Water and the city is not getting the adequate quantity due to illegal
tapping of water for irrigation along the canal.



A Metro Water official said that there is no other alternative source
of water for Chennai other than the two desalination plants in Nemelli
and Minjur which produce 100 MLD each.



It is learnt that the Metro Water has urged the Centre to take up the
project initially from Tamil Nadu government funds and later to be
adjusted with grants sanctioned by Union government or through loan
from KfW, a German government-owned development bank, based in
Frankfurt.



The project is to be taken up with 50 per cent of the project cost as
grant from Union Ministry of Urban Development. However, if no grants
are recieved from Centre, then the state will fund the project with
balance 50 per cent of the project cost from KfW or other loan which
will be repaid out of the Chennai Mega City Development Mission funds
over the repayment period.



Factfile:

---- Project: 150 MLD desalination plant

---- To be built on: Nemelli along ECR (water main up to Perur)

---- Announced on: April 16, 2013

---- Total cost: 1,371.86 crore

---- Op and maintenance cost: Rs 36.56 per KL
                                                           ---- Reason
for delay: GOI yet to finalise New Urban Renewal Mission schemes

---- Administrative sanction: March 9, 2015

---- Initial Funding pattern:

-- 50pc of project cost as grant from MoUD

If Centre denies funds:

TN to fund 50 pc project

Balance 50pc from KfW loan

Repayment of loan through Chennai Mega City Development Mission funds