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CPCL mulls handing over desalination project to external agency

M.Ramesh

CHENNAI, July 11

CHENNAI Petroleum Corporation Ltd (CPCL) is examining the option of handing over the large-scale sea water desalination plant at its Manali complex, to an external agency on a `build-own-operate' basis.

CPCL perceives there may be many advantages in handing over the project to someone else, rather than do and run the plant by itself.

First of all, the project's cost is estimated at over Rs 120 crore. The public sector company's board of directors has powers to approve projects up to Rs 100 crore and for anything beyond that the company would have to go to the Government for approval. If the project is done by another company on BOO basis, then there would not be a need for going to the Government for permission.

Secondly, CPCL would get rid of the hassle of identifying and sourcing the technology for the plant. According to Mr K Narayanan, Director (Operations), many companies have come forward with different technologies (such as reverse osmosis and flash dist illation), in response to a tender for technology for the project which closed on June 15.

Sea water desalination is a tricky subject and a refinery cannot claim to have expertise in it. In case another company takes up the project, CPCL would just have to buy the water.

``Instead of paying the Metro Water, I can pay him (the BOO operator),'' Mr Narayanan said.

The desalination plant that CPCL wants on its premises is expected to be of a capacity between 10,000 cubic metres to 15,000 cubic metres per day.

CPCL already has a `tertiary treatment plant' _ a reverse osmosis plant which reclaims water from city sewage. Last year, the plant produced 20 lakh cubic metre of water. The plant can supply about half of CPCL's requirement.

This year, thanks to the tight water supply situation, CPCL has been forced to recycle the water it uses, which is not very good for the refinery's health.

When the refinery's capacity would be extended by 3 mtpa by 2004, some dependable source of industrial water would be indispensable. Hence the sea water desalination project.