The cost of conversion of sea water into potable water depends primarily on the type of technology, capacity of the plant, location and cost of electricity which varies from place to place. According to the cost estimates made in August 2010 by an independent agency for Low Temperature Thermal Desalination (LTTD) technology, indigenously developed and demonstrated by the National Institute of Ocean Technology (NIOT), an autonomous Institute under Ministry of Earth Sciences, the cost per litre of desalinated potable water is about 61 paise for island based plants.
NIOT has set up one LTTD plant with its own funds at Kavaratti with a cost of about Rs. 5 crores and two plants, one each at Minicoy and Agatti islands with funds from Lakshadweep Administration with a cost Rs. 10.4 crores and Rs. 16.4 crores, respectively. One experimental LTTD plant using condenser waste heat from power plant was set up at North Chennai Thermal Power Station (NCTPS) with an expenditure of Rs. 4.5 crores by NIOT.