Date:13/02/2004 URL: http://www.thehindubusinessline.com/2004/02/13/stories/2004021301291700.htm
Back Water crisis in Chennai may drive construction costs up

Our Bureau

Chennai , Feb. 12

AT a time when housing demand is picking up, the water crisis in Chennai comes as a major concern for the construction industry.

Being a large consumer of water and with borewells running dry in most places, the construction industry has been mostly depending on tanker supply to meet its needs.

Mr Navaratan Lunawath, Managing Director, Arihant Foundation and Housing Ltd, said that price of water has gone up from Rs 500 last year to almost Rs 800 per tanker this year. The price depends on the distance that the lorries have to travel to fetch water. Mr Lunawath said that every week the lorries are going farther afield to find water. He fears that this increase in water cost will push up prices.

Construction of upmarket apartments has grown by almost 15 to 20 per cent during the last year, while the townships that are coming up in peripheral areas such as Tambaram and Mogappair have grown faster, said Mr J.R. Sethuramalingam, Chairman, Builders Association of India - southern centre. With increased construction activity water consumption has also gone up.

He said that builders have been buying water for a long time, as the quality of water used in construction has to be good. Iron content and salinity in the water would affect the quality of the construction. The use of water in this industry is high and every stage from laying the foundation to the final mosaic polishing requires it. The water used has to be potable; contaminated water would bring down the life of the building, he said.

Mr C. Subba Reddy, Managing Director, Ceebros Property Development Pvt Ltd, said that in some cases builders were depending on borewells. Without this source small-time builders will find it difficult to buy water, as there would be a cost overrun. On an average, he said, 1 lakh square feet requires around 1 million litres of water.

The amount of water required differs depending on the type of construction, Mr Sethuramalingam said. As a thumb rule, the curing process requires more water than construction, industry sources said. The concrete is kept wet for a minimum period of a week or more. At this stage large quantities of water are wasted and there is yet no effective recycling method, sources said.

With most apartment buildings forced to buy water, the residents are keen to keep a watch on their water budget as also ensure that the cost is equitably shared. Wholesalers selling water meters in Parrys have reported increased business.

A few shops in Sembudoss street, off Broadway, sell water meters that work on the same lines as an electricity meter. The meter is locked around the inlet pipe of a flat, and starts ticking when water flows through the pipe.

A shopkeeper said that sales had picked up after apartment complexes began to rely largely on tankers to provide water. When the price of water increased, complexes were forced to look for means to charge people according their consumption, he added.

The most popular water meter is one made in India with Japanese collaboration, said shopkeepers. The meter's base price is about Rs 525 (can be locked around a half inch pipe).

There is also an increased demand for water purification systems in residences. With the borewell water not being of potable quality - too salty, high in iron content or hard - residences are looking at water treatment facilities that are available in the market. Water treatment is possible at the household level. The catch is that it is expensive. But people are willing to pay.

According to officials in Ion Exchange (India) Ltd, sales of water purifiers have shot up significantly. While they are not willing to divulge the numbers, the demand is keeping them busy, they say.

The smallest unit using reverse osmosis technology, delivering about 5 litres of treated water an hour, costs about Rs 15,000 - 20,000. They have larger capacities delivering 500 litres to 2,000 litres and they cost up to Rs 45,000.

These purifiers treat about 20 per cent of the water passing through them and reject the balance, which can be used for general purpose such as washing, they said.

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