Tax regime delays Chennai’s third desalination plant

Floating of tender for Chennai’s third desalination plant has been delayed due to the Goods and Services Tax.

Published: 10th September 2017 01:26 AM  |   Last Updated: 10th September 2017 07:13 AM   |  A+A-

Express News Service

CHENNAI: Floating of tender for Chennai’s third desalination plant has been delayed due to the Goods and Services Tax. The tender for 150 MLD (million litres daily) desalination plant to be set up at Nemelli was scheduled to be floated on August 31. However, it was delayed due to GST, sources said.

The plant which is being funded by German agency KfW has been delayed over the price of components to be supplied for the project as it has to be reworked following the introduction of GST. It is learnt that the tender is likely to be floated after September 15.

Similarly, a 400 MLD desalination plant at Nemelli, which is financed by Japan International Cooperation Agency (JICA), is still being worked as Metrowater has to submit a revised detailed project report.

Currently, Metrowater relies on Minjur and Nemelli desalination plants to quench the thirst of Chennai.
The two desalination plants provide 180 MLD of water. During the water crisis in 2003-04,  water was brought by trains in the absence of desalination plants.



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