CHENNAI: THE proposed desalination plant at Nemmeli will cost the State Rs 2,100 crore more than the initial estimate of Rs 3,912 crore. A detailed project report (DPR) for the 400-MLD plant has revised the estimate to Rs 6,078 crores.
The first estimate was done in 2013 when a DPR was prepared. But because of GST and an increase in material cost, the estimation has been revised and the tender process is expected to begin soon, said an official at the Chennai Metropolitan Water Supply & Sewerage Board.
“Every year, there is a six to seven per cent increase in the cost of raw materials to be used in the plant’s construction. The process of finalising the project management consultant is in progress; once that is complete we will prepare the tender,” said a Metro Water official. Officials said the project, being financed by Japan International Cooperation Agency, will be completed by October 2025.
In December 2017, clearance for the plant was deferred by the Expert Appraisal Committee (EAC) of Environment Ministry on grounds that it may cause environmental damage due to erosion. But at its 190th meeting on May 8, EAC recommended a grant of Coastal Regulation Zone clearance, with conditions.