Mumbai: After reclaiming power, the BJP has unveiled its first BMC budget in nearly three decades for FY 2026–27. The budget commits a massive Rs. 6,475 crore towards boosting Mumbai’s water infrastructure, with flagship investments in the proposed desalination plant at Manori and the Gargai Dam project—an ambitious initiative championed by Chief Minister Devendra Fadnavis to secure the city’s long-term water future.
Rs 270 crore allocated for Manori-Charkop water tunnel
The proposal for a desalination plant in Mumbai was first mooted in 2007. In February 2021, the BMC appointed an Israeli firm to prepare a detailed project report, with design reviews completed in January 2022. The civic body will now construct the plant at Manori in the western suburbs with an initial capacity of 200 million litres per day (MLD), expandable up to 400 MLD. The project has a stipulated completion period of 48 months, and Rs. 500 crore has been earmarked in the 2026–27 budget.
To integrate the new supply with the existing distribution network, a 7.05 km-long, 2.5-metre diameter water conveyance tunnel has been proposed from the pumping station at Manori to Charkop and further up to Mahavir Nagar (Kandivali). An additional Rs. 270 crore has been provided in the 2026–27 budget for this vital conveyance infrastructure.
Gargai project...
The BMC has floated a tender for the long-pending Gargai Dam project on the Gargai River in Palghar district, an initiative under discussion for nearly a decade following the completion of the Middle Vaitarna Dam in 2014. Envisioned as Mumbai’s eighth water source, the Gargai Dam is expected to augment the city’s supply by 440 MLD at an estimated cost of Rs. 3,040 crore. The tender was invited in January 2026, with on-ground work slated to commence by March 2026. A budgetary provision of Rs. 437.51 crore has been earmarked for FY 2026–27. Additionally, the BMC has made a token allocation of Rs. 1 lakh for the proposed Pinjal Dam project in Palghar district. Once executed, the Pinjal Dam is projected to further enhance Mumbai’s daily water supply by 865 MLD.
Water tunnel...
To facilitate the expansion of the Mumbai–Nashik Highway and strengthen long-term water security, the BMC has proposed the construction of a water supply tunnel from the Yewai Master Balancing Reservoir to Kasheli. Shaft excavation at Tarali is currently underway and is expected to be completed by March 2026, with the main tunnelling work slated to commence by October 2026. A budgetary provision of Rs. 790 crore has been earmarked for this project in FY 2026–27. In addition, the BMC has proposed a 7.13 km-long, 4.5-metre diameter water conveyance tunnel from Kasheli to Mulund Octroi Naka in Thane city. Excavation of shafts at Mulund and Kasheli is in progress. The tunnelling work between the two shafts is scheduled to begin by June 2026 and is targeted for completion by October 2030. A provision of Rs. 640 crore has been allocated in the 2026–27 budget for this infrastructure project.
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