IVRCL Assets, a subsidiary of infrastructure major IVRCL Infrastructures & Projects Ltd,is likely to acquire 10% stake from its Spanish partner in its Chennai desalination project, which is all set for commercial operations.
Within the equity portion, IVRCL holds 75% and the balance is with the Spanish company, Befasa Agua. IVRCL is under a contract to operate and manage the project for 25 years.
The Rs 600 crore plant, which would convert sea water to potable quality, was executed with 75% debt and balance is equity.
IVRCL sources said efforts to buy at least 10% from Befasa are on and the proposal is still at a preliminary stage.
The company has the first right of refusal on Befasa’s holding in the special purpose vehicle set up for the desalination project.
IVRCL has been working on the desalination project at Minjur near Chennai for sometime now and due to a variety of reasons, including the approvals from the Tamil Nadu government, the project has been delayed having a direct impact on the total cost too.
The project has a capacity to supply about 100 million litres of water per day. For this, the project draws about 250 MLD from the sea and after treatment about 150 MLD would be discharged back into the sea.The Chennai water board would procure the treated water from the project. For this, the infrastructure company would get paid about Rs 48 per litre. IVRCL is expecting about Rs 110 crore in the first year of operations.
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