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Chennai, 2017: New tax held up Nemmeli tender

New tax held up desalination tender, Chennai, India

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In September 2017, The New Indian Express reported that the tender for a third desalination plant serving Chennai had slipped. The 150,000 m³/day facility at Nemmeli, financed by Germany's KfW, had been due to go out to bid on 31 August. After India introduced the Goods and Services Tax (GST), component prices had to be recalculated, and the tender was now expected after 15 September. For a further 400,000 m³/day plant, funded by JICA, Metrowater still owed a revised project report.

The report showed that Chennai was relying increasingly on seawater desalination for drinking water, and that a nationwide tax reform could hold up even internationally financed large projects.

Source: The New Indian Express

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