CHENNAI: The Central Marine Fisheries Research Institute (CMFRI), which studied the Chennai desalination project's possible impact on coastal marine and fishery, has given a go-ahead to the project.

In its report, submitted a few weeks ago, the Institute has recommended a series of measures for protecting the environment, sources say.

The report, prepared after four months of study, assumes importance in the wake of the Union Ministry of Environment and Forests linking it to according environmental clearance.

Mooted by the All-India Anna Dravida Munnetra Kazhagam regime, the desalination project envisages production of 100 million litres a day.

It will be implemented on a design, build, own, operate and transfer basis.

In September last, Chennai Metrowater signed a bulk water purchase agreement with IVRCL Infrastructures and Projects Limited.

The latter, along with its technical partner, Befesa Construccion y Technologia Ambiental [Environmental Construction and Technology], Spain, floated the Chennai Water Desalination Limited, a special purpose vehicle (SPV), for executing the project.

The International Finance Corporation (IFC), the private sector arm of the World Bank, has agreed in principle to fund a portion of the investment required for the desalination plant, which will come up at Minjur, 35 km north of Chennai.

The SPV has been contending from the beginning that various studies, including computer modelling and environment impact assessment, have shown that there will be no adverse impact, either on the marine system or the fisherfolk.

As part of the measures to be adopted to mitigate the possible impact caused by effluents from the plant, the Institute is learnt to have recommended a filtering mechanism.

Two rounds of negotiations took place between the project promoter and the Government in the last two weeks on the pricing structure of the project.

One more round is likely to be held this week.

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