CHENNAI: Minister for Local Administration M.K. Stalin on Tuesday denied former Chief Minister Jayalalithaa's charge that the 100 MLD capacity desalination project proposed by her Government could not be launched because of Union Environment Minister A. Raja's failure to affix his signature to the file concerned.

In a statement here, he said that Ms. Jayalalithaa did not sign for four months a file sent by the Metrowater on December 27, 2005 seeking approval by her and the Ministers concerned to ask for Central funds to compensate the gap in revenue to the tune of Rs.1481.78 crore, owing to implementation of the project from 2006-2007 to 2015-2016 as per the conditions laid down in the agreement.

Ms. Jayalalithaa had been keen to seek clearance for the project to be implemented by a firm that had laid down contractual obligations. The Metrowater had to procure 95 per cent of the total quantity of water produced every month including the monsoon season. If the Metrowater failed to do so, it had to remit the cost of the water to the firm, Mr. Stalin said.

For 25 years right from the day of commencement of the project, the Metrowater should purchase the desalinated water as per the price fixed by the firm, besides ensuring that power supply was made available to the firm continuously at the rate of Rs.3.50 a kW.

The loss incurred owing to hike in the power tariff and other operational expenditure had to be borne by the Metrowater, as per another condition, he said.

Recalling that in the policy note of the previous Government in 2003-2004, it was announced that a 300 MLD desalination plant would be established on a design, build, own, operate and transfer basis, he asked why the bids received on May 2, 2003 and September 22, 2003 were rejected. Later in 2004, another project was proposed and abandoned in June of that year, he said.

Tenders were invited for the third time on November 18, 2004 and seven price bids were received from four contractors on February 16, 2005.

After talks, the accord for total procurement of water was signed on September 13, 2005.

Though the agency had to fulfil financial closure by December 11, 2005, the deadline was extended, he said.

He also charged her and her then ministerial colleagues with failing to hold talks with Mr. Raja to obtain clearance, besides not coming forward to avail themselves of the offer made by the Union Finance Minister P. Chidambaram on Central assistance for a desalination plant for Chennai.

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