The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for the construction of one '100 MLD Sea Water Reverse Osmosis Desalination Plant' at Nemmeli near Chennai at a total cost of Rs.908.28 crore.

Of the total amount, Rs.871.24 crore will be borne by the Central Government and will be given as grant to the Government of Tamil Nadu for implementing the aforesaid project.

The project is likely to be completed by 2010-11. The project would lead to additional capacity of 100 MLD of water to meet the drinking water needs of Chennai City and will enhance per capita supply from 100 LPCD to 144 LPCD. The project would be implemented by Chennai Metro Water Supply Sewerage Board.

Chennai is an important economic centre in the country and has been fast developing as an IT hub. It has a sizable industrial establishment and is among the 10 top car manufacturing centres in the world. The city of Chennai has faced acute shortage of water in the past and the year 2004, water had to be transported to the city through tankers and rail from places as far as Neyveli and Mettur.

The CCEA also approved the development of four laning of Armur-Adloor Yellareddy Section of NH-7 in Andhra Pradesh under NHDP Phase III on BOT basis.

The project cost for 60.255 km of the section is estimated at Rs.531.67 crore including Rs.41.17 crore towards Land Acquisition (LA), Rehabilitation and Resettlement (R andR) and pre-construction.