Mumbai News: BMC Proposes Special Land Cell To Fast-Track Gargai Dam Project In Palghar Amid Cost Cut And Delay

The BMC has proposed a special land acquisition cell to accelerate the delayed Gargai dam project in Palghar, aimed at boosting Mumbai’s water supply by 440 MLD. With revised costs and pending land acquisition, the move seeks to fast-track execution amid rising water demand and project delays.

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Shefali Parab-Pandit Updated: Monday, March 30, 2026, 08:52 PM IST
BMC plans dedicated land acquisition cell to speed up Gargai dam project aimed at boosting Mumbai’s water supply | File Photo

BMC plans dedicated land acquisition cell to speed up Gargai dam project aimed at boosting Mumbai’s water supply | File Photo

Mumbai, March 30: The Brihanmumbai Municipal Corporation (BMC) has proposed setting up a dedicated land acquisition cell to expedite pending processes for the ambitious Gargai dam project in Ogada village, Palghar district.

The 10-member cell will include two additional collectors and four officials each from the ranks of deputy collectors and tehsildars, and will function from April 1, 2026, to March 31, 2027. The proposal is currently awaiting approval from the civic standing committee.

Project delays and revised cost

The standing committee stalled the project on March 11 over land acquisition delays and a 9% cost increase. After three rounds of negotiations in the past two weeks, the contractor agreed to lower the bid, cutting the project cost from Rs 3,276 crore to Rs 3,065 crore and reducing the total (including taxes) from Rs 5,396 crore to Rs 5,051 crore. The civic body will submit the revised proposal, including a plan to set up a special cell, for final approval on Wednesday.

Structure of the proposed cell

The proposal states that officials from the Collector’s office and tehsildars involved in land acquisition will be paid from the BMC’s funds. The civic body has sought the committee’s approval to set up this cell on a temporary basis for one year.

"Ten officials will be appointed on a rotational basis: five—comprising one additional collector, two deputy collectors, and two tehsildars—will serve for six months, followed by the remaining five for the next six months," said the proposal.

Land acquisition status

Meanwhile, of the 658 hectares needed for compensatory afforestation and PAP rehabilitation, the BMC has acquired 574 hectares, with 84 hectares still pending. The acquired land comprises multiple parcels in Chandrapur, Hingoli, and Washim districts. However, due to a shortage of large parcels, acquisition has stalled.

"To expedite the process, a special cell of the Collector’s office and revenue department officials has been formed, aiming to fast-track the remaining land acquisition and project execution," said an official.

Project scope and environmental impact

The Gargai Dam Project aims to boost Mumbai’s water supply by 440 MLD. It involves constructing a 69-metre-high dam near Ogada village and a 2.2 km tunnel to divert water to the Modak Sagar Reservoir.

Implementation will require felling around 3.1 lakh trees, including areas within the Tansa Wildlife Sanctuary, necessitating compensatory afforestation on non-forest land. The project is expected to be completed by 2029.

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Rising demand and supply challenges

The BMC supplies 4,000 MLD of water to Mumbai from seven lakes—Tansa, Bhatsa, Modak Sagar, Tulsi, Vihar, Upper Vaitarna, and Middle Vaitarna—but 34% is lost to theft and leakages.

Rising pollution and urbanisation have pushed demand to 4,463 MLD, expected to reach 6,900 MLD by 2041. The last major dam, Middle Vaitarna, was completed in 2014.

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Published on: Monday, March 30, 2026, 08:52 PM IST

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