Mumbai News: BMC Approves ₹2,368 Crore Deonar Landfill Bioremediation Contract At 3% Higher Cost

Mumbai: The Brihanmumbai Municipal Corporation (BMC) has approved the Deonar bioremediation contract at a rate 3% higher than its original cost estimate. The initial estimate for the project was Rs 2,368 crores. The contractor had originally submitted a bid 7.29% above this estimate; however, after two rounds of detailed negotiations, the final contract price was brought down.

Contract Awarded to Navayuga Engineering Ltd

In July, the BMC awarded the contract for the scientific treatment of approximately 185 lakh tonnes of legacy waste at the Deonar landfill to Navayuga Engineering Ltd. The company submitted a bid of Rs 2,540 crore, which was 7.29% above the BMC’s original estimate, outperforming competitors HG Infra (11.83%) and Re Sustainability (24.8%). However, the project experienced delays due to price disputes. The negotiations was finally settled down at 3% above the estimate.

Three-Year Project Timeline

The three-year contract includes mobilisation and monsoon periods, with mobilisation expected to take at least six months due to waste heaps up to 40 meters high. Officials are concerned about potential waste collapse into a nearby creek.

As the landfill is in an ecologically sensitive zone, obtaining No Objection Certificates (NOCs) from the Coastal Regulatory Zone authority, forest department, mangrove cell, and others is essential to ensure compliance with environmental and statutory regulations.

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Three-Year Project Timeline

In October 2024, the state cabinet approved handing over part of Deonar dumping ground—one of the country’s oldest landfills—for the Dharavi Redevelopment Project. The government directed BMC to clear 124 acres of the 311-acre landfill, which contains nearly two crore tonnes of legacy waste.