The Brihanmumbai Municipal Corporation (BMC) is preparing to award a Rs 3,276 crore contract for the long-pending Gargai Dam to Soma Constructions, marking a major step forward in the creation of Mumbai’s eighth water source. Once completed, the project is expected to supply an additional 440 million litres of water per day (MLD) to the city.
The contract value has increased by Rs 171 crore from earlier estimates, with the final figure standing around 5.5% higher than the 2020 projected cost. Including taxes and associated expenses, the overall project outlay is expected to reach approximately Rs 5,396 crore. The proposal will now be placed before the BMC Standing Committee for final approval.
Initially proposed in 1994, the Gargai Dam project has experienced several delays over the decades. It was revived by the government led by Devendra Fadnavis after the Maha Vikas Aghadi government shelved it in 2019. The civic body eventually issued the tender in December 2025, shortly before the upcoming municipal elections.
The project involves constructing a 69-metre-high dam near Ogada village and building a 2.2-metre tunnel to channel water to the Modak Sagar Reservoir. Authorities have set a target of completing the project by 2029. The BMC has also earmarked Rs 437.51 crore for the scheme in its Budget Estimates for 2026–27.
“After the work order for the Gargai Dam is issued, the first year will focus on securing mandatory permissions and relocating six affected villages. Dam construction is planned in the second year, followed by installation of a 1,200-kW hydropower unit in the third year to offset electricity costs,” said a civic official.
The project also involves environmental and rehabilitation challenges. Two villages will be directly impacted by the reservoir, while four others will require relocation.
“About 3.1 lakh trees will be transplanted, compensatory afforestation is planned across 658 hectares in Washim, Chandrapur, and Hingoli, while all residents from affected villages will be shifted to Devali in Wada Taluka with full infrastructure,” an official said.
At present, the BMC supplies around 4,000 MLD of water to Mumbai, with nearly 34% lost to leakages and theft. The city currently depends on seven lakes—Tansa Lake, Bhatsa Lake, Modak Sagar, Tulsi Lake, Vihar Lake, Upper Vaitarna Lake and Middle Vaitarna Lake.
With daily demand already estimated at 4,463 MLD and projected to rise to 6,900 MLD by 2041, officials say the Gargai project is crucial for securing Mumbai’s long-term water supply.
Source: The Free Press Journal
