Mumbai: BMC Saves ₹7.48 Crore In Bhandup Water Treatment Plant Project Through Cost Review Of Tower Relocation

Mumbai, June 19: In a rare example of cost-saving in civic works, engineers from the BMC's Water Supply Projects Department have helped save Rs 7.48 crore during the construction of the new 2,000 Million Litres Daily (MLD) water treatment plant at Bhandup.

The savings were achieved by scrutinising the cost of relocating extra-high-voltage power transmission towers, securing a refund from Tata Power, and ensuring that the salvage value of dismantled towers was returned to the civic body.

Savings achieved through tower relocation review

The savings were achieved during the relocation of Extra High Voltage (EHV) power transmission towers belonging to Tata Power, which stood on the project site.

Tata Power had initially estimated the relocation cost at Rs 14.70 crore, following which the BMC made an advance payment of Rs 12.46 crore through project contractor M/s Welspun Enterprises Ltd.

As part of the work, five new transmission towers were erected over a 500-metre stretch to replace three existing towers, and the shifting was completed in February 2026.

“During the execution of the project, civic engineers found that the estimated cost appeared significantly higher than the actual expenditure. A detailed reassessment of the completed work was carried out, along with follow-up for applicable rebates and recovery of the salvage value of dismantled towers.

Refund and additional savings secured

Based on the revised cost assessment, Tata Power agreed to refund Rs 5.76 crore to the civic body. The actual cost of the tower relocation was found to be Rs 6.69 crore. Additional savings from contractor overheads, profit margins and GST components increased the total financial benefit to Rs 7.48 crore.

The BMC is also expected to receive the salvage value of the dismantled towers, further adding to the savings,” a senior official said.

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Bhandup plant to boost water supply

The 2,000 MLD water treatment plant, being developed at the Bhandup complex, is designed on the principles of minimum footprint and zero wastewater discharge and is expected to significantly strengthen Mumbai's water supply infrastructure.

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