Mumbai Infra News: BMC Pushes Gargai Dam Project To Boost Water Supply Amid Cost Concerns
· Free Press Journal

Mumbai, March 16: While the ambitious desalination plant, Pinjal project and Damanganga-Pinjal Link Road are poised to boost the city’s water supply, their high operational and rehabilitation costs remain a concern. Civic authorities say the BMC plans to focus on the Gargai Dam.
However, the Standing Committee has emphasised that Gargai Dam’s construction should proceed on an equal footing, with negotiations to be finalised with the contractor. The ultimate decision is slated for the Standing Committee meeting on Wednesday.
Visit catcrossgame.com for more information.
Standing Committee reviews Gargai Dam proposal
The BMC’s Rs 5,396-crore Gargai Dam project in Palghar’s Wada taluka is expected to add 440 million litres per day (MLD) to the city’s water supply. Last week, the proposal was referred back by the Standing Committee after corporators raised concerns that its cost was 11% higher than the original estimate.
On Monday, civic authorities presented the project at the Standing Committee hall in the civic headquarters. Chairperson Prabhakar Shinde questioned officials on the operational and maintenance (O&M) costs of the desalination plant and the status of the Pinjal and Damanganga-Pinjal Link projects.
Civic officials highlight cost concerns
Abhijeet Bangar, Additional Municipal Commissioner (Projects), explained to the committee that while the desalination plants’ O&M costs are high, running them on green energy will reduce expenses.
Rehabilitation costs for the other two projects remain substantial, whereas the Gargai Dam is comparatively more cost-effective and easier to implement. Considering these factors, the civic body has prioritised Gargai as a key step in strengthening the city’s water infrastructure.
However, corporators from all political parties insisted that the contract should be awarded at par with the original estimate.
Corporators question project costs
Shiv Sena (UBT)’s Yashodhar Phanse said, “Earlier, we requested that the Damanganga project be declared a national project. What happened to that? The Gargai project is expensive, and nearly three lakh trees will be cut for it.”
Ashraf Azmi, Congress group leader, also questioned the 2% incentive on the total contract cost given to the contractor, calling it unnecessary.
Tejinder Tiwana of the BJP added, “It seems the tender conditions were favourable to the contractor, and the lowest bidder was confident of winning the contract, so he quoted 11% above the estimated price.”
Tender process and revised estimates
In February 2020, the civic body submitted a preliminary proposal to approve the Gargai Dam project at Rs 3,105 crore. After tenders were floated in December last year, both bidders quoted higher than the estimate: Soma Enterprises Limited offered Rs 3,334 crore (10.9% above), while Hindustan Construction Company (HCC) quoted Rs 3,496 crore (16.28% above). Following negotiations with the lowest bidder, the civic administration revised the contract to about 11% above the original estimate.
Also Watch:
Mumbai Infra News: Gargai Dam Project Under Review Amid Cost Escalation And Environmental ConcernsWater demand and supply in Mumbai
Daily demand – 4,665 MLD
Estimated demand by 2041 – 6,424 MLD
Current water supply – 4,100 MLD
Gargai Dam – 440 MLD
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/