2. development of desalination plant at bhgavnagar mundra ... · 57 2010 2050 water demand (bcm) in...

Development ofDesalination Plant atBhavnagar / Mundra

Water SupplyGovernment of Gujarat

Contents

Project Concept 3Demand & Supply 4Market Potential 5Growth Drivers 7Gujarat – Competitive Advantage 8Project Information 10- Location/ Size

- Infrastructure Availability/ Connectivity

- Project outline

- Raw Material/ Manpower

- Key Players/ Machinery Suppliers

- Potential collaboration opportunities

- Key Considerations

Project Financials 15Approvals & Incentives 16Key Department Contacts 17

Project Concept

85% of the Indiandesalinated plants aremembrane basedbecause membranebased technology are23% cheapercompared to thermaltechnology

� Desalination is a process that removes minerals from saline water to produce fresh watersuitable 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 haslow concentration of salt and other part is concentrated water that has the higher concentrationand is not usable.

Thermal Technology Membrane Technology

Multi-Stage Flash Distillation (MSF) Electrodialysis (ED)

Multi-Effect Distillation (MED) Electrodialysis reversal (EDR)

Vapor Compression Distillation (VCD) Reverse Osmosis (RO)

Desalination Process- Membrane technology

Condenser Membrane

Condenser Clean Water

Waste TankEvaporator

Evaporator VaporBrine Vapor

Brine

Brine

Water

WaterDrinkingWater

Seawater

Desalination Technologies

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 tomake 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 theremaining 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 India’sdesalination market over the past few years

Only 3% of the total water reserves of earth constitutes freshwater reserves in contrast to97% which is saline water, leaving very low quantity of water for consumption

Market Potential

688 910

2010 2025

Water demand across India (bcm)

Others Drinking Water Industry Irrigation

813

1,093

33% expected rise in Indianpopulation, from 1.2 bn in 2015 to1.6 bn by 2030

40% water losses out of totaldistributed water, highest in world

230 cubic km of groundwater isdrawn by India per year

Waterdemandon therise inIndia

� Total water production is estimated to rise butwater production per household is expected todecrease.

� Rising demand and low per capita production isincreasing the over exploitation of ground water.

� Ground water extraction accounts for nearly 37%of the total water production.

� Still, around 225mn people in India do not haveaccess to safe drinking water.

2012

94.7 94.8

2019

1,032 933

Total waterproduction

(bcm)

Total waterproduction/Household(litre/day)

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

� A number of coastal regions are turningto desalination and reverse osmosistreatments.

� At present, Indian desalination marketwith coastline of 7,517 km is atapproximately US$660 mn.

� Desalination water technology is widelyused in water scarce states such asGujarat, Tamil Nadu, and Rajasthan.

� Many big Industries such as Nirma,Gujarat Heavy Chemicals Ltd, IndianRayon are exploring the option of usingsea water for their industries.

Key metrics…

Source: Business Monitoring Intelligence (BMI)

Market Potential

US$1.9bnDesalination market in Indiaby 2019

22%CAGR growth expected indesalination market by 2020

400%Increase in installed capacityof desalination plant from290 MLD in 2008 to 1450MLD in 2015At present, Gulf countries account for over

50% of world desalination capacity

South Asian market is expected to reach at14% of global desalination market by 2019

47,600

78,400

2008 2014

Global Installed capacityof Desalination plants

(in MLD)

-20

0

20

40

60

-1.5

-1.0

-0.5

0.0

0.5

2014 2015 2016 2017 2018 2019Underground waterproduction, % y-o-y

Surface water production,% y-o-y

Desalination plant waterproduction, % y-o-y

Treated wastewaterreused, mcm,% y-o-y

Desalination market- Global and Indian scenario

� Low population:water resourcesratio

� Growth inindustrialization

� Irregularmonsoons

� Industrialcontamination

� High water salinityin coastal areas

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

Key drivers Water production growth by type (%)

Source: Business Monitoring Intelligence (BMI)

Source: Global Water Intel

Growth Drivers -Gujarat

Gujarat, one of the leading state in terms of economic growth and industrialization, fallsunder the water-stressed category

Uneven water distribution:� Despite having 185 rivers, 5.96% of the

total area of the country and 4.93% of thetotal population, Gujarat has only 2.28% ofthe total surface water resources availablein India.

� 70% of Gujarat's fresh water resources arelocated only in 30% of its geographicalarea. At present, there is disparity in wateravailability across different regions asSouth and Central Gujarat has more than50% of the total water availability.

� The total available water resources of thestate is ~55608 MCM, out of which,utilizable surface water in the state is only38100 MCM.

35

57

2010 2050

Water demand (bcm) inGujarat is expected to rise…

1.1

0.8 0.7 0.6

2001 2011 2015 2025

…however per capita availability ofwater (in bcm/annum) is decreasing

Risingwaterdemandsupply gapin Gujarat

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

Industrialgrowth

Gujarat accounts for 13% of the net value of manufacturing in India.Many industries in Maharashtra, Gujarat and Tamil Nadu are alreadypaying high price of INR60 per cubic metres for their water supply.

Lowqualitystandards

85% of the available water has high pollution level

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

Gujarat - CompetitiveAdvantage

Overexploitation of ground water, irregular monsoons and high water contamination hasmade coastal area of Gujarat one of the most saline region in the country

� In partnership with Gujarat government, a group of Singaporean and Japanese companies,such as Hyflux, Itochu and Hitachi are developing Asia’s largest desalination plants of 336 MLDcapacity with an investment of INR4,000 crore in Dahej, Gujrat.

� In 2016, Gujarat Water Infrastructure Limited (GWIL) & Gujarat Water Supply & SewerageBoard (GWSSB) are planning to develop a 150MLD seawater-based desalination plant forindustrial water supply in Kutch at the cost of INR700 crore.

� Many Indian industries such as Reliance, Nirma have also developed desalination plants in thestate of Gujrat.

� Gujarat has the largest coastline of 1600km in India, making it one of the state withhigh levels of saline water

� Of the total 70+ coastal talukas, more than50 coastal talukas are effected partially orfully by salinity

� Salinity has impacted 1200 to 1500 villagesand 12.90 lakh hectare of land since 1960in Gujarat

� In Bhavnagar district, four talukas(Bhavnagar, Ghogha, Mahuva, Talaja) andmore than 100 villages are effected partiallyor fully by salinity

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

Gujarat accounts for more than40% of desalination plants inIndiaGujarat government is workingon increasing desalinationinstalled capacity to 300 MLD by2018 and is estimated to reacharound 1500 MLD by 2030


First state to address the water waste issue and brought treatment,stabilization and disposal facility for cluster of industries.

� Gujarat provides 100 litre dailyrural water supply per headagainst the country average of55 litres

� Gujarat is one of the top stateswith more than 650 dams and 35large and medium reservoirs

� First state in Asia and fourthstate in the world with aDepartment for Climate Change 204

211

231

258

666

905

1800

Odisha

Rajasthan

Karnataka

Chhattisgarh

Gujarat

Madhya Pradesh

MaharashtraState-wise number of dams

Gujarat governments' initiatives to flourish the water market

INR24.5 bn for 361 km long pipelinenetworks, supplying daily 165 crore litre

Narmada water to total 5,587 villages and116 cities/towns

INR2 bn invested by Gujaratgovernment in the area of Kachchh with

coastline of 406 km as part of developmentprojects to reduce salinity

9 sites Out of total 27 CommonTreatment, Stabilization and Disposal

Facility (common TSDF) in the country arein Gujarat in which 6 are in operation

160% Rise in budget from INR70 croresto INR183 crores as part of its drought

mitigation plan

� Coastal Salinity Prevention Cell (CSPC); a joint initiative of Aga Khan Rural SupportProgramme (India), Ambuja Cement Foundation and Sir Ratan Tata Trust has launchedmany projects for the issues related to coastal area salinity in Gujarat.

� CSPC works in coastal districts of Gujarat including Bhavnagar and reaches out in 450coastal villages through 17 partners in the state.

� Indian government has established wastewater discharge standards for all segments such asmunicipal, industrial, commercial and residential.

Policy Initiatives

Key industries: Gujarat is the leader in key industrialsectors such as chemical, petrochemical, auto and itsallied sector, pharmaceuticals, engineering, textile,jewellery etc.

� Gujarat has attracted cumulative FDI worth US$12 bnfrom April 2000 to March 2015

� Gujarat clocked the highest growth rate inpharmaceutical market at 22.4% surpassing the industrygrowth rate of 10.9%

� Gujarat contributes around 19.1% to India’s total exportsof goods in 2014-15

� More than 10% of the country’s factories are in Gujaratwhile manufacturing sector contributes 28% to its GSDP

Gujarat, with 42.6% of its population residing in the urbanareas, is among the top three urbanized states in thecountry

Gujarat is one of the power surplus states in the country,as a result it helps in bringing huge amount of investmentfrom the industries and tagged as preferred investmentdestination in the country

Skill development industry in the state is well-developedwith many technical institutions (786 ITI’s and52 Skill upgradation centres)

Ease of Doing Business: Only state which comply 100%with environmental procedures. Gujarat fares highly whenit comes to setting up a business, allotment of land andobtaining a construction permit

“Gujarat rankedfirst in ease of

doing business asper DIPP report

2015”


Bhavnagar, Gujarat India

Project Information

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

• The project details are as follows:

Mundra, Gujarat IndiaLocations

Site Location

� 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 taluka comesunder Kachchh districtwith 14 approvedcoastal SEZ area.Mundra port is amongthe important port ofthe state

Maximum temperature : 28.3°C

Minimum temperature : 15.9°C

Maximum temperature : 27.2°C

Minimum temperature : 11.8°C

Mundra Bhavnagar

Bhavnagar: Out oftotal 33 districts, thereare 16 coastal districtsof Gujarat. Bhavnagaris one of the majorcoastal districts in thestate

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

The State Government ensures robust physical/industrial infrastructure &utility linkages

� Gujarat has a state wide “water supply grid” spread across1,20,769 km that aims to serve 75% of the Gujarat’s population.

� Gujarat has highest number of operatingairports in India including 16 Domestic and1 international airport.

� Daily air services are available betweenBhavnagar and Mumbai. Nearestinternational airport Ahmedabad is 177 kmfrom Bhavnagar and Bhuj is at 60 kmdistance from Mundra.

� Mundra and Bhavnagar is well connectedwith district roads, state highways andnational highways NH-8.

� Road connectivity increases the efficiency forwater networks and monitoring particularly inremote areas.

Road

� Mundra port by Adani group is the India’sbiggest commercial port and 1st port incountry to handle over 100 MMTPAcommercial cargo.

� Gujarat handles around 73% of India’s non-major port traffic and around 14% of India’smajor port traffic.

Air

� Gujarat boasts of 24 hours 3- phase uninterrupted power supplyunder the Jyotigram Yojana.

� Gujarat Energy Transmission Corporation Limited (GETCO) is anelectrical power transmission company with total of 1473 no pfsubstation for 400 KV , 220 KV, 132 KV and 66 KV systemvoltage.

Water

Power

Port IT

� Many city-surveillance projects are prominentin Mundra and Bhavnagar for the real-timemonitoring using technology projectexecution.

Project Information

Logistics & Connectivity

Infrastructure availability / connectivity

Desalination Process

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

Pre-treatment ofraw sea water

Filtrationsystem

ReverseOsmosis

Posttreatmentprocess

StorageWater

Outlet intosea

Components

Stilling Chamber Flash Mixer Sand filters

Ultra Filtration Storage Tank Dosing System

High Pressure Pump Reverse Osmosis System Water Tank

Project Information

India Leading Players

Company Corporateoffice Business Offerings

Larsen & Toubro Vadodara Water & Effluent Treatment business, DesalinationPlants, Municipal and Industrial Water Treatment

VA Tech Wabag Vadodara Municipal and industrial water and wastewatertreatment, Desalination plant

Thermax Ltd. Pune Waste water treatment, water & waste water / effluenttreatment plant

Kirloskar Brothers Ltd. Pune Water Supply, Power Plants, and IrrigationAquatech Systems

Asia Pvt. Ltd. Pune Desalination, Waste water treatment, Industrialprocess water

Techline Green Ltd. Bangalore Water treatment plants, RO Systems, FilterationSystem

ChempureTechnologies Pvt Ltd. Chennai Waste water, water treatment plants, chemical, water

treatment chemicalsWesco Water and

EnvironmentalServices Co Pvt. Ltd.

Mumbai Sea water desalination and waste water reuse

Titanium TantalumProducts Ltd Chennai Heat exchangers, pressure vessels, reactors, tanks,

pumps, industrial valvesCompact Aqua

Technocrats Noida Water treatment / purification technology

AirScienceTechnologies Inc. Ahmedabad Air pollution control, process gas treatment and

process gas separation systems

Project Information

Desalination service providers/ manufacturers can look for two types ofbusiness avenues

Desalination Service Providers/EquipmentManufacturers

Industrial Desalination Plants :Large companies’ inclinationto have captive desalinationplants to meet their processwater demands

State Government-OwnedDesalination Plants: Governmentcomes out with desalination plantsto fulfil state’s household andmunicipal water needs

The model used in tenders/projectsby industrial institutions is custombuild and transfer. In some projects,O & M is also taken care for 3 to 5years

The model used in tenders/projects bygovernment is BOOT (build, own,operate and transfer). Usual time spreadis of 10 to 20 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 reverseosmosis seawater desalination facility will be developed in Tamil Nadu using funds provided byGerman state-backed development bank Kreditanstalt für Wiederaufbau (KfW)

� Israel's IDE has more than 20 functional projects in India on PPP & Boot model and is lookingforward to bring more innovative water treatment technologies to India

� Players such as Saudi Arabia's Bushnak Group, Japan’s Hitachi, and domestic players such asVA tech are already running desalination plants in different parts of the country

Strong partnerships with Japanese, Korean and European agencies are helping Gujaratgovernment set up water projects and can lead to more technological and financialcollaborations in future

Project Information

Potential Collaboration Opportunities

Project Financials

Water Desalination Plant –Capacity 100 MLD

Equipment‘s/Components Units Total Price (INR)Seawater RO membranes 8,500

Approximate cost for all theequipment/ study is

estimated to be aroundINR2bn

Pressure vessels 248

Pressure exchanges 23

High pressure pumps 5

Pressure filter vessels 16

Civil and Electrical works, automationand control systems

NA

Environment Impact Assessment study,Environment Management plan, DPR,Obtaining mandatory clearances etc

Cost for Intake and Brine disposal system

Description Total Price (INR)Equipment Cost/ Engineering cost 2,00,00,00,000

Land lease rent & development(242811 sq.m x 36.00x100)

87,41,19,600

Working capital ( O&M, Cost of consumables andchemicals) for next 5 years

100,00,00,000

Total 3,87,41,19,600

Total Capital Investment

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

Cost structure of developing a water desalination plant inGujaratThe project cost for the proposed Desalination plant of capacity 100 MLD is arrived at based onthe estimated unit cost which includes all machineries, erection charges, civil works etc.

Approvals / Incentives

• 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.

Approvals Required

Incentives from Government of Gujarat

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

Gujarat government is also promoting solar powered desalination plant because ofenvironmental concerns. The use of solar photo voltaic power in the process would furtherreduce the operation cost.

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

1

2

3

Gujarat Water Supply Sewerage Board"Jal Seva Bhavan"Opp. Air Force Station,Sector - 10A, Gandhinagar – 382010Office : +91-79-23251050, 23220857E-mail : [email protected]

Gujarat Water Infrastructure Limited

Gujarat Infrastructure Development Board

https://gwssb.gujarat.gov.in/

http://www.gwil.in/

Gujarat Water Supply & Sewerage Board

Gujarat Industrial Development Corporation

http://www.gidb.org/index

http://www.gidc.gov.in/

Gujarat Water Resources Development Corporationhttps://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 Pollution Control Board, Government of Gujarathttp://gpcb.gov.in/

2. development of desalination plant at bhgavnagar mundra ... · 57 2010 2050 water demand (bcm) in...

Documents