The State government has sanctioned Rs 6,079 crore for establishing a 400-MLD reverse osmosis desalination plant at Perur on the East Coast Road, according to the GO issued by the Municipal Administration Department last week.
The funds were sanctioned to give effect to the recent announcement made by Chief Minister Edappadi K Palaniswami under Rule 110 in the Assembly. The plant, being set up to meet the increasing water demands in Chennai city, is funded by the Japan International Cooperation Agency.
The JICA will give Rs 4,267.70 crore in two tranches – i.e., Rs 1,744.40 crore as Transche-I and the balance as Tranche-II. The operation and maintenance cost for 20 years is estimated at Rs 20,174.14 crore and the land lease cost at Rs 82 crore for 30 years; that is, Rs 1,000 crore per annum, on an average.