Development of

Desalination Plant at
Bhavnagar / Mundra

Water Supply
Government of Gujarat
Contents

Project Concept 3
Demand & Supply 4
Market Potential 5
Growth Drivers 7
Gujarat Competitive Advantage 8
Project Information 10
- Location/ Size
- Infrastructure Availability/ Connectivity
- Project outline
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Potential collaboration opportunities
- Key Considerations
Project Financials 15
Approvals & Incentives 16
Key Department Contacts 17

Page 2
Project Concept

Only 3% of the total water reserves of earth constitutes freshwater reserves in contrast to
97% which is saline water, leaving very low quantity of water for consumption
 Desalination is a process that removes minerals from saline water to produce fresh water
suitable for consumption. It is used in municipal, industrial, or commercial applications.

 Desalination process separates saline water into two parts. One is a treated water which has
low concentration of salt and other part is concentrated water that has the higher concentration
and is not usable.

Desalination Technologies
85% of the Indian
Thermal Technology Membrane Technology desalinated plants are
membrane based
Multi-Stage Flash Distillation (MSF) Electrodialysis (ED) because membrane
Multi-Effect Distillation (MED) Electrodialysis reversal (EDR) based technology are
23% cheaper
Vapor Compression Distillation (VCD) Reverse Osmosis (RO) compared to thermal
technology
Desalination Process- Membrane technology
Drinking
Water Water
Condenser Membrane
Water
Sea
water Evaporator Vapor Condenser Clean Water
Brine
Vapor Brine

Evaporator Waste Tank

Brine

Desalination in India
 Despite India being a peninsula region, desalination technology is not seen as a natural fit,
mainly because of the costs involved. The technology of separating brine from sea water to
make it potable for daily use is expensive and energy-intensive.
 Apart from the cost, for every 100 mld of sea water treated, only 40 mld is made potable and the
remaining 60 mld of concentrated saline water has to be discharged back into the sea.
 However, increasing population, industrialization and demand for fresh water has derived Indias
desalination market over the past few years

Page 3
Market Potential

Key metrics

Water demand across India (bcm) 230 cubic km of groundwater is

drawn by India per year
Water 1,093
demand 40% water losses out of total
813
on the distributed water, highest in world
rise in
India 688 910 33% expected rise in Indian
population, from 1.2 bn in 2015 to
1.6 bn by 2030
2010 2025
Others Drinking Water Industry Irrigation

 Total water production is estimated to rise but

water production per household is expected to
Total water
decrease. 94.7 94.8
production
 Rising demand and low per capita production is (bcm)
increasing the over exploitation of ground water. 2012 2019
 Ground water extraction accounts for nearly 37% Total water
of the total water production. production/
Household 1,032 933
 Still, around 225mn people in India do not have (litre/day)
access to safe drinking water.
Source: Business Monitoring Intelligence (BMI)

The widening gap between growing water needs of population and scarcity in supply in
major coastal cities in India is giving rise to alternative water sources

 A number of coastal regions are turning

to desalination and reverse osmosis
treatments.
 At present, Indian desalination market
with coastline of 7,517 km is at
approximately US$660 mn.
 Desalination water technology is widely
used in water scarce states such as
Gujarat, Tamil Nadu, and Rajasthan.
 Many big Industries such as Nirma,
Gujarat Heavy Chemicals Ltd, Indian
Rayon are exploring the option of using
sea water for their industries.

Page 4
Market Potential

As of 2013, India has 182 desalination plants operating majorly in western and
southern parts and is expected to increase to 500+ by 2017

Key drivers 0.5 Water production growth by type (%) 60

 Low population:
water resources 0.0 40
ratio
-0.5 20
 Growth in
industrialization
-1.0 0
 Irregular
monsoons
-1.5 -20
 Industrial 2014 2015 2016 2017 2018 2019
contamination
Underground water Surface water production,
 High water salinity production, % y-o-y % y-o-y
in coastal areas
Desalination plant water Treated wastewater
production, % y-o-y reused, mcm,
% y-o-y
Source: Business Monitoring Intelligence (BMI)

Desalination market- Global and Indian scenario

Global Installed capacity

of Desalination plants
(in MLD)
US$1.9bn
78,400
Desalination market in India
by 2019
47,600

22%
CAGR growth expected in
desalination market by 2020

400%
2008 2014
Increase in installed capacity
of desalination plant from
Source: Global Water Intel
290 MLD in 2008 to 1450
At present, Gulf countries account for over MLD in 2015
50% of world desalination capacity
South Asian market is expected to reach at
14% of global desalination market by 2019

Page 5
Growth Drivers -
Gujarat
Gujarat, one of the leading state in terms of economic growth and industrialization, falls
under the water-stressed category

Uneven water distribution:

 Despite having 185 rivers, 5.96% of the
total area of the country and 4.93% of the
total population, Gujarat has only 2.28% of
the total surface water resources available
in India.
 70% of Gujarat's fresh water resources are
located only in 30% of its geographical
area. At present, there is disparity in water
availability across different regions as
South and Central Gujarat has more than
50% of the total water availability.
 The total available water resources of the
state is ~55608 MCM, out of which,
utilizable surface water in the state is only
38100 MCM.
Water demand (bcm) in however per capita availability of
Gujarat is expected to rise water (in bcm/annum) is decreasing
Rising 1.1
57
water 0.8
0.7
demand 35 0.6

supply gap
in Gujarat
2010 2050 2001 2011 2015 2025

Gujarat accounts for 13% of the net value of manufacturing in India.

Industrial Many industries in Maharashtra, Gujarat and Tamil Nadu are already
growth paying high price of INR60 per cubic metres for their water supply.

Low 85% of the available water has high pollution level

quality Of 33 districts in the state, 20 are severely affected by salinity, 18 are
standards affected by fluoride, 17 are affected by chloride

Decreasing per capital water availability, high industrial consumption and low water
quality generates the strong growth opportunities for the water , wastewater recycling and
desalination market

Page 6
Gujarat - Competitive
Advantage
Overexploitation of ground water, irregular monsoons and high water contamination has
made coastal area of Gujarat one of the most saline region in the country

 Gujarat has the largest coastline of 1600

km in India, making it one of the state with
high levels of saline water
 Of the total 70+ coastal talukas, more than
50 coastal talukas are effected partially or
fully by salinity
 Salinity has impacted 1200 to 1500 villages
and 12.90 lakh hectare of land since 1960
in Gujarat
 In Bhavnagar district, four talukas
(Bhavnagar, Ghogha, Mahuva, Talaja) and
more than 100 villages are effected partially
or fully by salinity

Gujarat accounts for more than

40% of desalination plants in
India
Gujarat government is working
on increasing desalination
installed capacity to 300 MLD by
2018 and is estimated to reach
around 1500 MLD by 2030

Over the years, Gujarat has emerged as one of the front running states in adopting
desalination technology for water sourcing and many private and technological players
have entered the Gujarat market

 In partnership with Gujarat government, a group of Singaporean and Japanese companies,

such as Hyflux, Itochu and Hitachi are developing Asias largest desalination plants of 336 MLD
capacity with an investment of INR4,000 crore in Dahej, Gujrat.
 In 2016, Gujarat Water Infrastructure Limited (GWIL) & Gujarat Water Supply & Sewerage
Board (GWSSB) are planning to develop a 150MLD seawater-based desalination plant for
industrial water supply in Kutch at the cost of INR700 crore.
 Many Indian industries such as Reliance, Nirma have also developed desalination plants in the
state of Gujrat.

Page 7
Gujarat - Competitive
Advantage
First state to address the water waste issue and brought treatment,
stabilization and disposal facility for cluster of industries.

 Gujarat provides 100 litre daily

rural water supply per head State-wise number of dams
against the country average of Maharashtra 1800
55 litres Madhya Pradesh 905
 Gujarat is one of the top states Gujarat 666
with more than 650 dams and 35
large and medium reservoirs Chhattisgarh 258
Karnataka 231
 First state in Asia and fourth
state in the world with a Rajasthan 211
Department for Climate Change Odisha 204

Gujarat governments' initiatives to flourish the water market

INR24.5 bn for 361 km long pipeline INR2 bn invested by Gujarat

networks, supplying daily 165 crore litre government in the area of Kachchh with
Narmada water to total 5,587 villages and coastline of 406 km as part of development
116 cities/towns projects to reduce salinity

9 sites Out of total 27 Common 160% Rise in budget from INR70 crores
Treatment, Stabilization and Disposal
to INR183 crores as part of its drought
Facility (common TSDF) in the country are
mitigation plan
in Gujarat in which 6 are in operation

Policy Initiatives

 Coastal Salinity Prevention Cell (CSPC); a joint initiative of Aga Khan Rural Support
Programme (India), Ambuja Cement Foundation and Sir Ratan Tata Trust has launched
many projects for the issues related to coastal area salinity in Gujarat.
 CSPC works in coastal districts of Gujarat including Bhavnagar and reaches out in 450
coastal villages through 17 partners in the state.
 Indian government has established wastewater discharge standards for all segments such as
municipal, industrial, commercial and residential.

Page 8
Gujarat - Competitive
Advantage
Ease of Doing Business: Only state which comply 100%
with environmental procedures. Gujarat fares highly when Gujarat ranked
it comes to setting up a business, allotment of land and first in ease of
obtaining a construction permit doing business as
per DIPP report
2015
Key industries: Gujarat is the leader in key industrial
sectors such as chemical, petrochemical, auto and its
allied sector, pharmaceuticals, engineering, textile,
jewellery etc.
 Gujarat has attracted cumulative FDI worth US$12 bn
from April 2000 to March 2015
 Gujarat clocked the highest growth rate in
pharmaceutical market at 22.4% surpassing the industry
growth rate of 10.9%
 Gujarat contributes around 19.1% to Indias total exports
of goods in 2014-15
 More than 10% of the countrys factories are in Gujarat
while manufacturing sector contributes 28% to its GSDP

Gujarat, with 42.6% of its population residing in the urban

areas, is among the top three urbanized states in the
country

Gujarat is one of the power surplus states in the country,

as a result it helps in bringing huge amount of investment
from the industries and tagged as preferred investment
destination in the country

Skill development industry in the state is well-developed

with many technical institutions (786 ITIs and
52 Skill upgradation centres)

Page 9
Project Information

Site Location
Development of Desalination Plant at Bhavnagar / Mundra in Gujarat on PPP

The project details are as follows:

Mundra, Gujarat India

Locations
Bhavnagar, Gujarat India

Mundra taluka comes

under Kachchh district
with 14 approved
coastal SEZ area.
Mundra port is among
the important port of
the state
Bhavnagar: Out of
total 33 districts, there
are 16 coastal districts
of Gujarat. Bhavnagar
is one of the major
coastal districts in the
state

 Mundra is situated in Kachchh (Bhuj), Gujarat, India with geographical coordinates area 22.85
North, 69.73 East.
 Bhavnagar is a district in Gujarat and its geographical coordinates area 21.76 North, 72.15
East.

Mundra Bhavnagar

Maximum temperature : 28.3C Maximum temperature : 27.2C

Minimum temperature : 15.9C Minimum temperature : 11.8C

Key Notes: Fitment of other locations is being done so if they are more suitable then the Govt. could come up with a
plant there. Locations like Dev Bhoomi, Dwarka, Gir Somnath, Bhavnagar, Jamnagar are considered

Page 10
Project Information

Infrastructure availability / connectivity

Logistics & Connectivity

Air Road

 Gujarat has highest number of operating
airports in India including 16 Domestic and
1 international airport.
 Daily air services are available between
Bhavnagar and Mumbai. Nearest
international airport Ahmedabad is 177 km
from Bhavnagar and Bhuj is at 60 km
distance from Mundra.
 Mundra and Bhavnagar is well connected
with district roads, state highways and
national highways NH-8.
 Road connectivity increases the efficiency for
water networks and monitoring particularly in
remote areas.

IT
Port

 Mundra port by Adani group is the Indias  Many city-surveillance projects are prominent
biggest commercial port and 1st port in in Mundra and Bhavnagar for the real-time
country to handle over 100 MMTPA monitoring using technology project
commercial cargo. execution.
 Gujarat handles around 73% of Indias non-
major port traffic and around 14% of Indias
major port traffic.
The State Government ensures robust physical/industrial infrastructure &
utility linkages

 Gujarat has a state wide water supply grid spread across

Water 1,20,769 km that aims to serve 75% of the Gujarats population.

 Gujarat boasts of 24 hours 3- phase uninterrupted power supply

under the Jyotigram Yojana.
Power
 Gujarat Energy Transmission Corporation Limited (GETCO) is an
electrical power transmission company with total of 1473 no pf
substation for 400 KV , 220 KV, 132 KV and 66 KV system
voltage.

Page 11
Project Information

Desalination Process

Pre-treatment of Filtration Reverse Post

raw sea water system Osmosis treatment
process

Water
Outlet into Storage
sea

The RO technology of the plant produces 100mld of desalinated water from 273mld of sea water

Components

Stilling Chamber Flash Mixer Sand filters

Ultra Filtration Storage Tank Dosing System

High Pressure Pump Reverse Osmosis System Water Tank

Page 12
Project Information

India Leading Players

Corporate
Company Business Offerings
office
Water & Effluent Treatment business, Desalination
Larsen & Toubro Vadodara
Plants, Municipal and Industrial Water Treatment
Municipal and industrial water and wastewater
VA Tech Wabag Vadodara
treatment, Desalination plant
Waste water treatment, water & waste water / effluent
Thermax Ltd. Pune
treatment plant
Kirloskar Brothers Ltd. Pune Water Supply, Power Plants, and Irrigation
Aquatech Systems Desalination, Waste water treatment, Industrial
Pune
Asia Pvt. Ltd. process water
Water treatment plants, RO Systems, Filteration
Techline Green Ltd. Bangalore
System
Chempure Waste water, water treatment plants, chemical, water
Chennai
Technologies Pvt Ltd. treatment chemicals
Wesco Water and
Environmental Mumbai Sea water desalination and waste water reuse
Services Co Pvt. Ltd.
Titanium Tantalum Heat exchangers, pressure vessels, reactors, tanks,
Chennai
Products Ltd pumps, industrial valves
Compact Aqua
Noida Water treatment / purification technology
Technocrats
AirScience Air pollution control, process gas treatment and
Ahmedabad
Technologies Inc. process gas separation systems

Page 13
Project Information

Potential Collaboration Opportunities

Desalination service providers/ manufacturers can look for two types of

business avenues

Desalination Service Providers/Equipment

Manufacturers

Industrial Desalination Plants : State Government-Owned

Large companies inclination Desalination Plants: Government
to have captive desalination comes out with desalination plants
plants to meet their process to fulfil states household and
water demands municipal water needs

The model used in tenders/projects The model used in tenders/projects by

by industrial institutions is custom government is BOOT (build, own,
build and transfer. In some projects, operate and transfer). Usual time spread
O & M is also taken care for 3 to 5 is of 10 to 20 years
years

Most of the projects running in India are on PPP and BOOT Model

 The foreign companies are performing well in the Indian market. The INR13.71bn reverse
osmosis seawater desalination facility will be developed in Tamil Nadu using funds provided by
German state-backed development bank Kreditanstalt fr Wiederaufbau (KfW)
 Israel's IDE has more than 20 functional projects in India on PPP & Boot model and is looking
forward to bring more innovative water treatment technologies to India
 Players such as Saudi Arabia's Bushnak Group, Japans Hitachi, and domestic players such as
VA tech are already running desalination plants in different parts of the country

Strong partnerships with Japanese, Korean and European agencies are helping Gujarat
government set up water projects and can lead to more technological and financial
collaborations in future

Page 14
Project Financials

Cost structure of developing a water desalination plant in

Gujarat
The project cost for the proposed Desalination plant of capacity 100 MLD is arrived at based on
the estimated unit cost which includes all machineries, erection charges, civil works etc.

Water Desalination Plant Capacity 100 MLD

Equipments/Components Units Total Price (INR)

Seawater RO membranes 8,500

Pressure vessels 248

Pressure exchanges 23
High pressure pumps 5 Approximate cost for all the
equipment/ study is
Pressure filter vessels 16 estimated to be around
Civil and Electrical works, automation NA INR2bn
and control systems
Environment Impact Assessment study,
Environment Management plan, DPR,
Obtaining mandatory clearances etc
Cost for Intake and Brine disposal system

Total Capital Investment

Description Total Price (INR)

Equipment Cost/ Engineering cost 2,00,00,00,000

Land lease rent & development 87,41,19,600

(242811 sq.m x 36.00x100)

Working capital ( O&M, Cost of consumables and 100,00,00,000

chemicals) for next 5 years

Total 3,87,41,19,600

The above estimates are derived from similar projects executed in India. The total price can
vary based on plant size and need of additional equipment's.

Page 15
Approvals / Incentives

Approvals Required
Entry & Exit Procedure: Desalination projects are usually funded through a PPP model in
which private players are invited via competitive bidding.

Setting up of Business: The facility can be operated by the private player through a built-
operate-transfer (BOT) model.

Power & Water Connection: Additional power for the project can be procured from the
existing supplier Paschim Gujarat Vij Company Ltd. (PGVCL). Similarly, water for the project
can be procured from the Gujarat Water Supply and Sewerage Board.

Environmental Clearance: CRZ Clearance (Coastal Clearance) needs to be obtained from

Gujarat Coastal Zone Management Authority (GCZMA). Additionally, pollution clearance from
Gujarat Pollution Control Board (GPCB) is also required.

Incentives from Government of Gujarat

1 Gujarat government is also promoting solar powered desalination plant because of

environmental concerns. The use of solar photo voltaic power in the process would further
reduce the operation cost.

2 Financial assistance for skill development centres, for technology acquisition and also for
supporting energy and water conservation as well as for environmental compliance.

3 Tax holidays: The benefits of tax holidays as provided under Section 80 (I) (A) of the Income
Tax Act for development, operation and maintenance of power plants, airports, ports, waste
management facilities, water treatment plants, etc. is available to the developer.

Page 16
 Gujarat Water Supply & Sewerage Board
https://gwssb.gujarat.gov.in/

Gujarat Pollution Control Board, Government of Gujarat

http://gpcb.gov.in/
Gujarat Water Infrastructure Limited
http://www.gwil.in/

Gujarat Infrastructure Development Board

http://www.gidb.org/index

Gujarat Industrial Development Corporation

http://www.gidc.gov.in/
Gujarat Water Resources Development Corporation
https://guj-nwrws.gujarat.gov.in

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Gujarat Water Supply Sewerage Board

"Jal Seva Bhavan"
Opp. Air Force Station,
Sector - 10A, Gandhinagar 382010
Office : +91-79-23251050, 23220857
E-mail : msgwssb@gmail.com