JICA extends ODA loan of INR 3,065 crores for Chennai Seawater Desalination Plant (II) in India

Chennai, 27 March 2025: Japan International Cooperation Agency (JICA) signed a loan agreement amounting to 52,556 million Japanese Yen (approximately INR 3,065 crores) for the Project for Construction of Chennai Seawater Desalination Plant (II) in the state of Tamil Nadu, India.

The Chennai Metropolitan Area, with a current population of approximately 8.69 million (2011), is projected to exceed 15 million by 2035, placing immense pressure on water supply infrastructure. The increasing water demand, currently exceeding 1,400 million litres per day (MLD), has led to a supply gap, impacting both residents and industries, including over 360 Japanese companies operating in the region. Given the limited availability of surface and groundwater resources, the city has prioritized seawater desalination as a sustainable and stable source of water supply.

This project aims to ensure a safe and stable water supply in Chennai by constructing and enhancing seawater desalination and water transmission facilities, thereby contributing to an improved living environment and a stronger investment climate. The project will involve the construction of a new 400 MLD desalination plant, along with the installation of water transmission and distribution infrastructure, including pumping stations, reservoirs, and pipelines. The project also includes consulting services for design, construction supervision, operational management support, and public awareness activities.

The ODA loan agreement was signed between Ms. Manisha Sinha, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Mr. TAKEUCHI Takuro, Chief Representative of JICA India.

Speaking on this occasion, Mr. TAKEUCHI Takuro, Chief Representative of JICA India Office, said, “Chennai has long faced challenges in securing sustainable water sources due to rapid urbanization and climate-related factors. Through this project, JICA is committed to supporting the city’s efforts to establish a resilient and sustainable water supply system that ensures a better quality of life for residents and a more favourable business environment.”

The Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) is the executing agency for this project, responsible for its implementation and future operation.

This project aligns with Japan’s Development Cooperation Policy with India (November 2023), which prioritizes clean socio-economic development and addresses environmental sustainability and climate change. It also aligns with the Kumamoto Water Initiative, under which Japan has committed approximately 500 billion yen to strengthening water supply systems across the Asia-Pacific region over a five-year period. Additionally, this initiative complements previous and ongoing international aid efforts, including the Asian Development Bank’s Tamil Nadu Urban Flagship Investment Program and the World Bank’s Chennai City Partnership Program, both of which support urban water infrastructure.

The figures are calculated with current exchange ratio: INR 1/- = JPY 1.71491/-