The Gujarat government has inked an MoU with consortium of Japanese and Singaporean companies for setting up the Asia's largest seawater desalination plant in Dahej.

The consortium of Japan-based Hitachi, ITOCHU Corporation and Singapore-based Hyflux Ltd signed co-developer agreement with Dahej Special Economic Zone Ltd (DSEZL), the company managing Dahej SEZ, in the presence of Gujarat Chief Minister Narendra Modi and Japanese Ambassador Akitaka Saiki.

The consortium has established 'Dahej Spring Desalination Private Ltd' for project implementation. The main feature of co-developer agreement is to secure the rights to supply water to industrial parks in the Dahej SEZ, a state industry department official said.

The project goal is to solve problem of shortage of industrial water in the coastal industrial region of Dahej.

The project is a part of the Delhi-Mumbai Industrial Corridor (DMIC).

Upon completion, Dahej project will be largest seawater desalination project in Asia, according to officials.

The 300 mld desalination plant is expected to need investment of around Rs 3,000 crore.

Speaking on the occasion, Modi said it is a landmark initiative for water management on World Water Day and added that project is unique as it would be run on solar power.