Mumbai Desalination Plant : Some Missing Facts

 

 

Context :

Desalination plant to help Malad, Kandivali residents     …  HT  /  02 Oct 2023

Extract :

The seaside village of Manori has been identified for setting up the desalination plant, which will have an initial capacity of 200 million litres a day (MLD), which in future can be expanded to 400MLD

In a fortnight, the BMC will invite tenders for its ambitious desalination project aimed at providing potable water to the residents of Malad and Kandivali..

The seaside village of Manori has been identified for setting up the desalination plant, which will have an initial capacity of 200 million litres a day (MLD), which in future can be expanded to 400MLD. “A provision of ₹200 crore has been made in the budget for this project,” said a BMC official from the water supply department.

 

 “The capital expenditure on construction will be ₹2,066 crore, and then there is the energy cost for 20 years. Renewable energy (energy from natural sources) will be used to make this project viable.”

 

The plant will be set up on 12 hectares (29.6 acres) of government-owned land at Manori village.

 

The civic official said that the marine work and structure constructed in the sea would have a 400MLD capacity. “The capital expenditure will thus be a little more,” he said. The intake pipe will be constructed three to four km inside the sea, and will be connected to the desalination plant on the sea shore.

 

The BMC had shelved the desalination project in the past on account of the exorbitant cost of electricity. “But now since we plan to use renewable energy to run the plant, the per-thousand kilolitre cost of treating sea water will be close to ₹42,” said P Velrasu, additional municipal commissioner (projects).   (amc.projects@mcgm.gov.in)

 

“This is comparable with the cost of the water that currently comes from the city’s seven reservoirs. Since we are doing renewables, we will also have a power purchase agreement. This too will reduce operation costs.”

 

Data Furnished in News Report :

( A )  Initial capacity…………….. 200 million litres a day (MLD)

( B )  Future Capacity……………  400 million litres a day ( MLD )

( C )  Capital expenditure on construction…………  ₹ 2,066 crore

( D )  Cost of treating sea water… Approx Rs 42 per thousand Kilolitre

 

 

Data Missing in Report :

( 1 )    Cost of Marine and work and structure constructed in the sea….(     )  Rs Crore       

( 2 )    Amount of Solar Energy required to run the plant  …………………  (       )  Kwh

( 3 )    Area of PV Solar Panels required ………………………………………………. (       )  Sq Ft

( 4 )    Capital Cost of Solar Panels required……………………………………………(       )  Rs Crore

( 5 )   Cost of Solar Energy used/day ( Int + Depr.+ Overheads + Maint. )…..(        )  Rs Crore

( 6 )  Cost of Solar Energy consumed to produce potable water…………….(       ) Rs / Litre  

 

Related Readings :

Ø  For Wabag, revenues flow through water pipes………… BL  / 09 Oct 2023

Extract :

Wabag is constructing what is described as South East Asia’s largest desalination plant – a 400 MLD ( million litres per day ) desalination plant at a cost of Rs 4,276 crore, at Perur near Chennai. This plant is expected to be commissioned by Dec 2026

 

Ø  Mumbai Desalination Plant ( Proposed ) : a White Elephant ?...24 Nov 2021

 

Extract :

Based on that report, I had calculated the cost of desalinated water as follows :

( source :   With a pinch of Salt ?    /  29 June 2021 )

How much will this cost to produce 1,000 litres of water ?

 My guess :

       Ø  Capital Cost……………………….. Rs  1,600 crore

  Running Cost

      Ø  Interest @ 15 %...........................................................  Rs   240  Cr

      Ø  Depreciation @ 10 %.....................................................  Rs   160  Cr

      Ø  Operating Expenses @ 20 % ( Manpower+Electricity+OH )… Rs   320  CR

  TOTAL ……………………………………………………………………………………………Rs  720  Cr

Assuming 360 working days ( to round-up ), this works out to…Rs  2  Cr / day ( =

Rs 20,000,000 )

To produce 200 MLD = 200,000,000 litre per day

Works out to Rs 20 / 200 litre ( Rs 100 / 1,000 litre, as against Rs 18 / 1000

litre reported in the news !

 

Now, if the estimated cost goes up:

#   from  Rs  1600 Crore

#   to      Rs  18,000 Crore

Then per litre cost would go up by 11 TIMES !

That means, the revised cost would be Rs 1100 for 1000 litre

Rs 1.1 / litre !

Going by past records ( of project executions ), you can safely assume that

instead of :

#  4 years, completion would take 8 years

#  Rs 18,000 Cr, cost would go up to Rs 36,000 Cr

So, Mumbai-ites would get desalinated water at Rs 2.2 / litre  ( more likely, Rs

3.0  / litre )

As against this, a 20 Litre Mineral Water jar ( of BHOOMI brand ) sells for Rs 30 (

 ie ; Rs 1.5 / litre )

Elephants don’t get any whiter !

 

Ø  My past ( 17 ) blogs on WATER SCARCITY ( as on March 2022 )………….. 19 Aug 2023

 

 

At this stage , I felt like consulting BARD . I asked :

“  Based on the “ Data furnished in the News Report “ – and my past blogs on this

 subject, could you please compute ( even if tentative ) and show, “ Data Missing

 in the Report “ .  

 

Following is how BARD replied :

 

Sure. Here is a reframed reply taking into account the other costs associated with

desalination and a cost of solar energy of Rs 4 / kWh :

Data Missing in Report:

(1) Cost of Marine and work and structure constructed in the sea: Rs 1,000

    crore

(2) Amount of Solar Energy required to run the plant: 100,000,000 kWh/year

(3) Area of PV Solar Panels required: 1,000,000 sq ft

(4) Capital Cost of Solar Panels required: Rs 1,000 crore

(5) Cost of Solar Energy used/day (Int + Depr.+ Overheads + Maint.): Rs 4

     crore (based on Rs 4/kWh)

(6) Cost of Solar Energy consumed to produce potable water: Rs 2/litre (based

     on Rs 4/kWh and 0.5 kWh/litre of water)

     

In addition to the above costs, there are also other costs associated with

desalination, such as:

·        Cost of capital: 

This is the cost of borrowing money to build the desalination plant. It can be significant, especially for large projects.

·        Cost of operation and maintenance: 

This includes the cost of labor, chemicals, and other supplies needed to operate the plant.

·        Cost of disposing of the brine concentrate: 

The brine concentrate is a waste product of desalination. It is more saline than seawater and can be harmful to marine life. It is important to dispose of the brine concentrate in a safe and environmentally friendly way.

The total cost of desalinated water will vary depending on all of these factors.

However, it is generally more expensive than other sources of fresh

water, such as surface water and groundwater.

Despite the costs, desalination is becoming an increasingly important source of fresh water in many parts of the world, including India. As water scarcity becomes more acute, desalination is likely to play an even greater role in meeting the water needs of people and communities.

 

Dear Shri  P Velrasu,

Additional municipal commissioner (projects).  

(amc.projects@mcgm.gov.in)

 

For the sake of transparency , I request you to confirm / deny / correct , the

MISSING DATA in the news report – as computed by BARD

As far as the CAPITAL COST ( Plant + Infrastructure + Solar Panels etc ) is

concerned , I presume that BMC does NOT have to borrow from banks at an

interest rate of 15 % pa

BMC has close to Rs 70,000 Crore , lying with banks as FIXED DEPOSITS , which

( I guess ) , earns an interest of 7 % ( ? )

I suppose you would use this fund for the proposed desalination plant

I also urge you to get a DPR ( Detailed Project Report ) EVALUATED by a third-

party CONSULTING FIRM – and publish its findings, before awarding the contract

 

With regards,

Hemen Parekh

www.hemenparekh.ai  /  14  Oct  2023