Chennai: The Rs1,000 crore desalination water plant on the coromandel coast near Chennai proposed by the finance minister P Chidambaram in his budget speech will be implemented by the Chennai Desal Company Limited newly promoted by the Tamil Nadu government.

In the post budget media conference union finance secretary citing the new company set up by the Tamil Nadu government said that detailed feasibility study will be first undertaken. "The project will be on build-operate-transfer basis with public-private participation." There will also be a captive power plant.

The proposed project will have a capacity to provide 300 million litres per day of desalinated water. While the plant is expected to cost Rs1,000 crore there will be other additional costs in transmission and distribution of the water.

The finance minister has proposed setting up of similar plants in other places along the coromandel coast.

Presently there are five desalination plants operated by the Chennai city water agency with a total capacity of five lakh litres per day. While one is shut down for maintenance the other four are operational. The Tamil Nadu Water Supply and Drainage Board (TWAD) operates the largest desalination plant in South Asia located in the Ramanathapuram district.

In addition the Chennai Petroleum Company Limited has proposed to set up a desalination plant (capacity 5.8 million gallon per day) at an outlay of Rs193.31 crore. The Company is awaiting final approval for IOC Board for proceeding with the project. In the meantime, the Company has initiated necessary steps for obtaining all statutory and environmental clearances.

On its part the Department of Atomic Energy has decided to set up small desalination plants in Tuticorin. The Bhabha Atomic Research Centre (BARC) has set up a desalination plant at Kalpakkam. The plant produces 18 lakh litres of drinking water per day.