The Department of Science and Technology is working on a proposal to set up a desalination plant with a processing capacity of 10 million litres per day off the coast of Chennai by 2007, Union Minister for Science and Technology Kapil Sibal said on Saturday. Another plant off the Chennai coast, with a capacity of one million litres per day, would be inaugurated by January 2007, he said inaugurating the Bhupat and Jyoti Mehta School of Biosciences at the Indian Institute of Technology-Madras.