Chennai: The Union finance minister P.Chidambaram has announced in his budget (2008-09) a provision of Rs.300 crore as centre's share of a desalination plant to be set up near Chennai.

It was during the 2004 budget speech the finance minister had announced centre's intention of assisting a desalination project near Chennai.

After that the announcement didn't make much progress with the finance minister saying that the state government has not sent any proposal.

In his budget speech on Friday, Chidambaram has said that a proposal from the Tamil Nadu government has come and it is being examined for financial assistance.