The Bombay High Court has cleared the way for the long-delayed Kalu Dam project in Maharashtra’s Thane district, lifting a decade-old restriction that prevented the Konkan Irrigation Development Corporation (KIDC) from awarding construction contracts. The decision allows the corporation to invite fresh bids for the project, which is expected to supply an additional 406.55 million cubic metres of water to the Mumbai Metropolitan Region (MMR).
A division bench comprising Justices Manish Pitale and Shreeram Shirsath issued the order on Wednesday following a petition filed by KIDC through advocate Priyanka Chavan. The interim restriction had been imposed in December 2016, barring the corporation from appointing another contractor while a legal dispute remained unresolved.
Approved by the Maharashtra government in July 2009, the dam is planned for Murbad in Thane district. The Mumbai Metropolitan Region Development Authority (MMRDA) was initially designated as the project’s nodal agency, while the construction contract was awarded to FA Enterprises in May 2010.
However, construction failed to commence amid allegations that the company had manipulated the tendering process using forged documents and dummy firms. In September 2016, the state government cancelled several irrigation contracts amid wider corruption allegations, including the contract for the Kalu Dam. KIDC subsequently terminated FA Enterprises’ agreement, prompting the company to approach the high court.
During the latest proceedings, senior advocate Rajeev Chavan, representing KIDC, sought removal of the restriction. He submitted that the prolonged delay had increased the project’s estimated cost to approximately Rs 4,010 crore.
Chavan also highlighted the dam’s importance in addressing the MMR’s rising water requirements. Growing population levels and increasing demand from households, industries and other sectors have strengthened the need to advance the project, he argued.
Accepting KIDC’s request, the high court permitted the corporation to restart the tendering process. However, the bench clarified that FA Enterprises would remain eligible to participate in the fresh bidding.
The ruling removes a significant legal obstacle to the project, although construction will depend on the tendering process and subsequent implementation.
Source: Hindustan Times
