Gujarat plans mega desalination projects

The Gujarat government plans to enhance its water security by 370 million litres through eight seawater desalination plants along its 1,600 km coastline. The financial allocation for this is a nominal INR 100 crore since the projects will be set up on a public private partnership (PPP) model.

Water Supplies Minister Kunwarji Bavaliya told the Assembly that "with an aim to tap the state's long 1,600 coastline for our water needs, we have taken this significant decision that will reduce the Saurashtra-Kutch region's dependence on the Narmada dam for drinking water." He said a pilot project of 10 crore litres of water a day will be set up at Jodiya in Jamnagar district on a PPP basis. The government will only provide the land for the project, whereas the financial requirements for the project will be borne by a Special Purpose Vehicle (SPV) set by private players.

Two bidders - Essel Infra, Mumbai and Spain's Abeinsa Infraestructuras Medio Ambiente - have been awarded the project through a Letter Of Acceptance on April 12, 2018. Both the firms have already formed the SPV, Jodiya Water Desalination Ltd. They will invest around INR 750 crore as capital investment and INR 100 crore annually as recurring expenditure.

The state government will buy water at 70 paise per litre for two years and the purchase price will increase by 3% annually, Bavaliya said. Similarly, the government will set up seven other plants with 270 million litre capacity across the coastline of Saurashtra and Kutch. The projects will be put up at Mundra, Mandvi, Dwarka, Porbandar, Sutrapada, Rajula and Ghogha, and tenders have been issued for them, according to an official of the Gujarat Water Supply and Sewerage Board.