India's leading water-treatment company VA Tech Wabag has been the country's largest desalination project that will have a daily production capacity of 100 million litres. The plant will come up at Nemmeli, near Chennai, the capital of India's southern Tamil Nadu state.
The project contract has bagged by VA Tech Wabag from the Chennai Metropolitan Water Supply and Sewerage Board. The Board has turned towards seawater desalination in a big way to ramp up the supply of water for the city, which has not been able to keep pace with rising demand.
The Nemmeli desalination plant is Chennai's second, with the first coming up at Minjur in the city's north.
VA Tech Wabag, which is also based in Chennai, will implement the project as a 70:30 joint venture with Israel-based IDE Technologies. The Rs 1,033-crore reverse osmosis plant will be commissioned in the next 24 months.
VA Tech Wabag expects to commence construction on the project from next month.
The contract value is divided into two parts - Rs 533 crore towards design and construction and Rs 500 crore as operation and maintenance charges spread over seven years. The construction cost of Rs 533 crore project will be funded by a grant from the Indian Government.
The project has been allocated to the company on a design, build and operate (DBO) basis. Chennai Metropolitan Water Supply would be allocating the fund for the O&M contract.
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