Estimated Cost Breakdown for the Proposed 10 MLD Desalination Plant
Estimated
Category Details Expenditure (Rs Cost per KL (Rs)
Sl.No Cr)
Plant Specifications
1 Plant Capacity in MLD 10
2 No. of Days of Operation 365
3 Annual Production in KL 3,650,000
Capital Expenditures (CapEx)
Includes design, engineering, supply, erection, and
4 Electro & Mechanical commissioning of the desalination plant & machinery 55
equipment.
Cost of civil construction work, including structural
5 Civil Cost elements like foundations, tanks, and operational 30
buildings.
Cost of infrastructure to bring in seawater (intake) and
6 Intake & Outfall Pipe Cost 30
discharge treated wastewater (outfall).
Construction of a 25 KM pipeline to transport treated
7 Pipeline to IKSEZ 40
water to the industrial area at Rs 16,000 per meter.
Installation of a 33 KV electrical substation with high-
8 Electrical Substation tension (HT) lines to ensure adequate power supply to the 10
plant.
Total Capital Cost 165
Cost of Production (CoP) per KL basis.
Fixed Costs
Period: 15 Years. Depreciation of Rs 55 Cr (Item:1) for
9 Depreciation (Electro & electro-mechanical components, spread across annual 10.05
Mechanical)
production of 36,50,000 KL.
Period: 30 Years. Depreciation of Rs 110 Cr(Item 2 to 5)
10 Depreciation (Civil & Electrical for civil and electrical works, spread across annual 10.05
substaiton)
production of 36,50,000 KL.
Annual interest expense at 10% on 70% of the total capital
11 Interest Cost 31.64
cost loan.
12 Fixed Adminstrative cost Security, employee cost, and other related fixed costs for 10.00
operations.
Total Fixed Costs 61.74
Variable Costs
Electricity Charges for Energy consumption of 4.3 units per KL of water treated,
13 34.40
desalination of sea water with electricity priced at ₹8 per unit.
Electricity Charges for pumping Estimated electricity consumption for pumping treated
14 10.00
treated water to IKSEZ water to the industrial area, assumed to be Rs 10.
Cost of chemicals (e.g., anti-scalants, chlorine),
15 Chemicals & Consumables membranes, and other consumables required for the 25.00
desalination process
16 Production Overhead cost Skilled and unskilled manpower, routine maintenance, and 10.00
supervision
Total Variable Costs 79.40
Total water Cost per KL Fixed + Variable Costs 141.14
Note 1: Land Related Costs and Government Levies are not included
