Daijiworld Media Network – Mumbai
Mumbai, Mar 10: The long-pending Gargai Dam Project aimed at strengthening water supply to Mumbai has moved a step closer to implementation, with a proposal worth Rs 5,396 crore set to be placed before the Brihanmumbai Municipal Corporation (BMC) standing committee for approval on Wednesday.
According to civic officials, two companies have submitted bids for the project. Soma Enterprise, headquartered in Hyderabad, quoted Rs 3,334 crore, while Mumbai-based Hindustan Construction Company submitted a bid of Rs 3,493 crore. Both bids are higher than the BMC’s initial estimate of Rs 3,006 crore.

The civic body has sought administrative approval for Rs 5,396 crore, which includes 18% GST, 8% water taxes and 10% other civic taxes, along with operational and maintenance costs for two years. The estimate also accounts for a 2% rise in material costs, a 16% increase in expenditure and 2% for incentives.
Apart from construction expenses, the project includes costs for rehabilitation and environmental measures. The rehabilitation and resettlement of residents from six affected villages is estimated at Rs 133 crore, while transplantation of around 3.1 lakh trees is expected to cost Rs 233 crore.
Under the proposal, dam construction is estimated at Rs 1,776 crore and tunnelling works at Rs 400 crore. Officials said the dam is expected to be completed within 48 months, excluding monsoon periods. The contract also includes 24 months of maintenance.
The project is considered the largest water supply initiative undertaken by the BMC since the completion of the Middle Vaitarna Dam in 2014. The project was recommended by noted hydrologist Madhav Chitale.
Mumbai currently receives water from seven reservoirs — Tansa Lake, Modak Sagar, Vaitarna Lake, Middle Vaitarna Lake, Bhatsa Dam, Tulsi Lake and Vihar Lake, located around 100 to 175 km away from the city.
The proposed dam will be built on the Gargai River near Ogde village in Wada taluka of Palghar district. It will measure 69 metres in height and 979.4 metres in length and will be connected to Modak Sagar reservoir through a 1.6-km water tunnel. The project will also include a 1.2-MW hydroelectric generation facility and realignment of highways affected by construction.
Currently, the BMC supplies around 4,000 million litres per day (MLD) of water against a demand of about 4,505 MLD. According to the civic body’s Environmental Status Report 2024-25, Mumbai’s water requirement is projected to reach 6,535 MLD by 2041, including transmission losses.
To bridge the gap, the BMC plans to develop additional sources including the Gargai project (440 MLD), the Pinjal Dam Project (865 MLD) and the Damanganga–Pinjal River Link Project (1,586 MLD). Together, these initiatives are expected to add about 2,891 MLD to the city’s water supply.
However, the Gargai project has faced delays for more than a decade. Sitaram Shelar, convenor of the Pani Haqq Samiti, said the project was earlier stalled due to concerns from the state government about allocating additional water to Mumbai at the expense of neighbouring areas in the Mumbai Metropolitan Region.
“Such big-ticket projects are a waste and are now being pushed simply because we have excess funds to spend. Projects like this create an island of prosperity for island cities like Mumbai, surrounded by the water-scarce MMR,” Shelar said.