
Desalination plants in India: projects, buyers and how foreign firms win
India is building some of Asia’s largest seawater desalination plants, led by Chennai and now Mumbai and Tamil Nadu’s industrial corridors. Several of the largest have been won by foreign technology companies working with Indian partners. This guide lists the plants, explains the contract models and buyers, and sets out what a foreign firm needs to win.
By UBR Infra · Updated 28 October 2026 · 33 sources
Why India is turning to desalination
India’s coastal cities depend heavily on monsoon-fed reservoirs and lakes. When the monsoon fails, supply collapses. Desalination gives a city a supply that does not depend on rainfall, and Chennai has shown how far that can go: its desalination plants were expected to supply about 300 million litres a day (MLD) in 2024, out of a city supply of roughly 1,040 to 1,070 MLD, or close to 30% of the total.[1]
The next wave is larger and spread more widely. Chennai is building a 400 MLD plant at Perur, Mumbai has awarded a 200 MLD plant at Manori that can expand to 400 MLD, and Tamil Nadu’s industrial agency is buying desalinated water for industry at Tuticorin.[4][6][8]
India’s major seawater desalination plants
| Plant | Capacity | Status | Model and partners |
|---|---|---|---|
| Minjur, Chennai | 100 MLD | Operating since July 2010 | Design, build, own and operate for 25 years, then transfer to the state. Built by IVRCL with Abengoa (Befesa) of Spain; cost ₹515 crore.[2] |
| Nemmeli I, Chennai | 110 MLD | Operating; membranes being replaced in 2024 | Output about 70–80 MLD during membrane replacement.[1] |
| Nemmeli II, Chennai | 150 MLD | Opened February 2024 | Cost ₹1,259 crore, of which ₹700 crore came from Germany’s KfW.[3] |
| Perur, Chennai | 400 MLD | Under construction; about 62% complete in March 2026 | Design-build-operate with 20 years of operation. VA Tech Wabag with Metito (UAE). Japan’s JICA lent ¥52.6 billion in March 2025.[4][5][10] |
| Manori, Mumbai | 200 MLD, expandable to 400 | Awarded December 2025 | EPC plus 20 years of operation; contract value ₹11,166 crore including construction, operation and power. IDE Technologies (Israel) with GVPR Engineers.[6][7] |
| SIPCOT Tuticorin, Tamil Nadu | 60 MLD | Awarded January 2026 | Hybrid Annuity Model with 15 years of operation, for industrial users. IDE Technologies with Indian partners.[8] |
| Jodiya, Gujarat | 100 MLD | Agreement signed 2018; reported stalled | Long-term concession agreed with an Indian developer; a local legislator reported in 2021 that works had stalled for years.[9] |
MLD = million litres per day. Status as reported in the sources listed at the end of this guide.
Beyond Chennai and Mumbai: Gujarat, Andhra Pradesh and the islands
| Plant | Capacity | Status and partners |
|---|---|---|
| Nemmeli I, Chennai | 110 MLD | Built by VA Tech Wabag with IDE Technologies under EPC; operating since 2013; approved cost ₹914 crore, mostly central funding.[14] Wabag won a repeat seven-year operation contract worth about ₹415 crore in 2024.[15] |
| Dahej, Gujarat | 100 MLD | Inaugurated June 2022 at ₹881 crore to supply the GIDC industrial estate.[16] Built by an L&T-led JV with Tecton of the UAE, with 10 years of operation.[17] |
| Four GWIL plants, Saurashtra and Kutch | 70 + 70 + 100 + 30 MLD | MoU signed in 2020 with an SPV of Shapoorji Pallonji and Aquatech, to feed Gujarat’s water grid.[18] Progress has been slow: nothing had been spent on the 100 MLD Kutch plant’s allocation by December 2025.[19] |
| Visakhapatnam, Andhra Pradesh | 100 MLD (planned) | A PPP of about ₹1,200 crore planned by the city corporation, with IDE named as technical partner and up to 20 MW of solar; industry is the first intended buyer.[20] |
| Lakshadweep | About 0.1 MLD per island | Low-temperature thermal plants built by the National Institute of Ocean Technology at Kavaratti, Agatti and Minicoy, with six more approved.[33] |
Manori is also moving: the state coastal authority approved it on 7 April 2026 and the environment ministry gave final coastal clearance on 28 April. Phase 1 is targeted for 2029, with intake and outfall pipes tunnelled under the seabed.[21][22]
Who buys desalinated water in India
There is no single national buyer. Desalination plants are commissioned by:
- City water utilities, such as the Chennai Metropolitan Water Supply and Sewerage Board, which owns the Minjur, Nemmeli and Perur plants.[1][4]
- Municipal corporations, such as Mumbai’s municipal corporation for Manori.[6]
- State industrial development agencies, such as Tamil Nadu’s SIPCOT, which buys water for industrial estates.[8]
- State governments through concessions, as in Gujarat.[9]
Each buyer runs its own tender, with its own eligibility rules and payment terms. Knowing which buyer has funding, land and political backing for a plant is the first filter for any bidder.
Industrial desalination: the quieter, larger market
Some of India’s biggest desalination capacity sits inside refineries and power plants, and it is bought privately rather than by public tender:
- Reliance, Jamnagar. First commissioned in 1998 and expanded twice; IDE won the seawater RO expansion announced in 2013.[23] Wabag won a further ₹430 crore order in 2022 for a 53 MLD plant at the refinery.[24]
- Nayara Energy, Jamnagar. IDE supplied about 65,000 m³ a day of thermal (multi-effect distillation) capacity across four units commissioned in 2006 and 2012.[25]
- Tata Power, Mundra. Aquatech won an EPC and operation contract for about 25,200 m³ a day of seawater RO and related treatment at the 4,000 MW plant.[26]
- Green hydrogen. Electrolysis needs purified water; NTPC is building a 1 tonne-a-day seawater-to-hydrogen plant at Simhadri using desalination driven by waste heat.[32] Port hydrogen hubs are planning their own desalination units, which makes this a growing source of demand.
For foreign suppliers, industrial buyers often move faster than municipalities, care more about reliability than lowest price and award repeat orders to proven vendors.
Contract models: how plants are procured and paid for
| Model | How it works | Example |
|---|---|---|
| Build, own, operate, transfer | The private company finances, builds and runs the plant, sells water to the utility, and hands the plant over at the end of the term. | Minjur (25 years)[2] |
| Design-build-operate (DBO) | The utility funds the plant (often with a development-bank loan); the contractor designs, builds and runs it for a long period, paid for construction and then for operation. | Perur (20 years of operation)[4] |
| EPC plus long-term O&M | A turnkey construction contract with a separate long operation and maintenance period, sometimes including power. | Manori (20 years)[6][7] |
| Hybrid Annuity Model | About 40% of capital cost paid during construction and the rest as annuities over the operating period, linked to performance. | SIPCOT Tuticorin (15 years)[8] |
For a bidder, the model decides who carries the financing and how secure the payments are. Lender-funded DBO contracts and Hybrid Annuity projects with escrowed payments generally offer stronger payment security than contracts paid from a utility’s own revenue. Read our guide to the Hybrid Annuity Model for how annuity payments work.
Who funds the plants
Development lenders have funded the largest plants. Germany’s KfW provided ₹700 crore of Nemmeli II’s ₹1,259 crore cost, and Japan’s JICA lent ¥52.6 billion for Perur.[3][5] Lender funding usually brings international procurement rules and more predictable payment, which makes these packages more open to foreign bidders than purely state-funded tenders.
What desalination costs in India
| Project | Cost basis | ₹ crore per MLD (our calculation) |
|---|---|---|
| Nemmeli I | ₹914 crore for 100 MLD | 9.1[14] |
| Dahej | ₹881 crore for 100 MLD | 8.8[16] |
| Jamnagar 53 MLD (EPC only) | ₹430 crore | 8.1[24] |
| Manori (construction only) | About ₹4,077 crore for 200 MLD | 20.4[22] |
Most projects fall at roughly ₹8–11 crore per MLD of construction cost. Manori is the outlier, largely because of its tunnelled marine works. Running costs are where desalination differs most from conventional supply: a 2019 Chennai analysis put operating cost at about ₹68 per kilolitre against ₹6–23 for surface water,[27] and Nemmeli’s life-cycle cost was estimated at about US$0.55 per m³.[28] Gujarat agreed to pay ₹70 per kilolitre for Jodiya’s water, rising 3% a year.[29]
Power is the largest operating cost, which is why bidders increasingly pair plants with solar: Gujarat’s regulator lets desalination plants install solar up to 400% of their contract demand.[31]
How foreign desalination firms win in India
The pattern is consistent across the large awards: foreign technology companies team with Indian contractors.
- Abengoa (Befesa) of Spain built and operates Minjur with IVRCL.[2]
- Metito of the UAE is building Perur in a joint venture with VA Tech Wabag.[4]
- IDE Technologies of Israel won Manori with GVPR Engineers and Tuticorin with Indian partners.[6][8]
The partner brings Indian execution capacity, local track record and the ability to meet pre-qualification rules; the foreign firm brings membrane and process technology and long-term operating experience. Three rules shape the team you need:
- Local content. Public buyers give purchase preference to suppliers with at least 50% local content under the Make in India public procurement order.[11]
- Global tenders. Since 2020, public buyers may not invite global tenders for contracts up to ₹200 crore without special approval. Large desalination plants usually exceed that threshold, but smaller industrial plants may not.[12]
- Land-border countries. Bidders from countries that share a land border with India must register with a government committee before bidding.[11]
Our partner search service finds and checks the Indian contractor that completes your bid, and our market-entry guide explains entry vehicles and eligibility in more detail.
Risks to price in
- Energy. Power is a large share of a desalination plant’s operating cost; Mumbai’s Manori contract value explicitly includes power for the operating period.[7]
- Performance over time. Membranes degrade. Chennai’s older Nemmeli plant was producing about 70–80 MLD of its 110 MLD capacity while membranes were replaced in 2024.[1]
- Projects that stall. Gujarat signed an agreement for a 100 MLD plant at Jodiya in 2018, but works were reported stalled years later.[9] Check land, approvals and payment security before committing bid costs.
- Environmental scrutiny. New plants have drawn questions from environmental groups over need and brine discharge.[13]
Approvals: coastal rules and brine
The Coastal Regulation Zone Notification 2019 lists desalination plants and their intake and outfall facilities as permissible in the intertidal zone, provided they meet environment ministry and pollution board standards.[30] Works in coastal waters need clearance from the environment ministry on the state coastal authority’s recommendation, and a consent to establish from the state pollution control board where effluent is discharged.[30]
There is no national standard specific to brine; conditions are set project by project, as with Manori’s long-term brine monitoring.[21] Bidders should budget for marine studies and allow for clearance to take a year or more: Manori’s tender was floated in December 2023 and its final coastal clearance came in April 2026.[22]
Frequently asked questions
How many desalination plants are there in India?
India has several large municipal seawater desalination plants, concentrated in Chennai (Minjur and two plants at Nemmeli, with Perur under construction), plus newer plants awarded in Mumbai (Manori) and Tamil Nadu (Tuticorin), and many smaller industrial plants at refineries, power stations and ports.
Which is the largest desalination plant in India?
Chennai’s Perur plant, at 400 million litres a day, will be the largest when complete. It was about 62% complete in March 2026. Mumbai’s Manori plant is designed to expand to the same 400 MLD.
Can a foreign company bid for desalination projects in India?
Yes. Large plants are typically tendered globally, and several of the biggest have been won by foreign technology firms working with Indian contractors. Local-content preferences and pre-qualification rules mean a capable Indian partner is usually essential.
What contract models are used for desalination in India?
Build-own-operate-transfer (Minjur), design-build-operate with long operation (Perur), EPC with long-term operation and maintenance (Manori), and the Hybrid Annuity Model (SIPCOT Tuticorin).
Who funds desalination plants in India?
Water utilities and state agencies, often with development-bank loans. KfW co-funded Nemmeli II and JICA is funding Perur.
Related
Sources
- Citizen Matters, interview with CMWSSB Managing Director, May 2024
- Wikipedia, Minjur Seawater Desalination Plant
- Indian Infrastructure, Nemmeli plant inaugurated, March 2024
- Indian Infrastructure, Perur desalination plant, January 2024
- JICA, loan for Chennai Seawater Desalination Plant II, March 2025
- Business Wire, IDE Technologies and the Manori plant, December 2025
- Free Press Journal, BMC finalises ₹11,166 crore Manori deal, December 2025
- Business Wire, IDE signs SIPCOT desalination contract, January 2026
- DeshGujarat, Jodiya desalination plant works stalled, August 2021
- Indian Infrastructure, 62% of Perur construction complete, March 2026
- ELP, revision to the Public Procurement (Preference to Make in India) Order
- Business Today, global tenders barred for procurement up to ₹200 crore, May 2020
- ThePrint, Chennai to get fourth desalination plant; environmentalists question need
- CMWSSB, Nemmeli desalination plant project note
- Indian Chemical News, Wabag repeat ₹415 crore O&M order for Nemmeli, August 2024
- ThePrint, India's first 100 MLD desalination plant inaugurated in Dahej, June 2022
- DeshGujarat, L&T–Tecton JV wins Dahej desalination contract, July 2019
- DeshGujarat, MoU for four desalination plants in Saurashtra and Kutch, February 2020
- DeshGujarat, no spending on Kutch desalination project in two years, February 2026
- EA Water, Visakhapatnam 100 MLD desalination PPP, September 2025
- ThePrint, Manori desalination plant ground report, July 2026
- Free Press Journal, Manori gets MCZMA approval, April 2026
- Oil & Gas Journal, Reliance expands Jamnagar desalination plant, December 2014
- DT Next, Wabag repeat ₹430 crore order from RIL, July 2022
- IDE Technologies, Essar (Nayara) Jamnagar project
- WaterWorld, Aquatech wins desalination contract for Mundra UMPP, June 2009
- Citizen Matters, cost of desalination vs surface water in Chennai, March 2019
- Indian Infrastructure, alternative supply: desalination costs, April 2019
- Lokmat Times, Gujarat plans desalination plants, April 2018
- CRZ Notification 2019, text
- Mercom, Gujarat allows desalination plants solar up to 400% of contract demand, August 2021
- Energetica India, NTPC seawater-to-green-hydrogen plant at Simhadri, November 2024
- MoES / PIB, low temperature thermal desalination in Lakshadweep, July 2022
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