Centre to okay another desalination plant for Chennai

Union minister for urban development, Jaipal Reddy said that the central government will clear the Rs 900 crore Nemili desalination plant near Mamallapuram, south of Chennai, in two weeks time.Under the proposal, the Central government will give over 90% of the funds allocated as grant or subsidies to the desalination plant that will process 100 MLD (million litres per day). “The cabinet will clear in the next two weeks Rs 870 crore for the project through the Jawaharlal Nehru Urban Renewal Mission,” said Jaipal Reddy. The first desalination plant is being built at Minjur, north of the city on the design-build-own-operate transfer (DBOOT) project which also has a capacity to give 100 MLD. IVRCL Infrastructure and Projects and its technical partner Befesa Construction Tecnologia Ambiental, Spain, are building the plant. Reddy also announced that the 46 kilometre Chennai metro rail project would also get clearance from the central government in two weeks. The project cost for the rail project is estimated at Rs 14,600 crore, the minister said. “The government will bear 20% of the cost of the project. Out of which 15% will be in the form of equity and 5% as sub-ordinate debt. It has already tied with Japanese international co-operation agency (JICA) for 60% of the cost as a loan,” he added. The remaining 20% of the project cost is to come from the State government. The foundation stone for both projects — the Nemili desalination plant and the Chennai metro rail — he hoped would be laid within the next two months.Reddy also brought up transportation, and said, “the state should also look at the Bus Rapid Transit System (BRTS), if not for Chennai at least for Coimbatore.”