Mumbai, July 7, 2026: Even as the Brihanmumbai Municipal Corporation (BMC) nears completion of the crucial Phase IV of the Mithi River Rejuvenation Project, it has sought an additional Rs 21.03 crore following the increase in the Goods and Services Tax (GST) from 12% to 18%, pushing the project cost from Rs 604.30 crore to Rs 625.34 crore. The proposal will be placed before the BMC Standing Committee on Wednesday.
Project Cost Revised
Phase IV involves the construction of a sewage tunnel linking Bapat Nullah and Safed Pool Nullah to the proposed Dharavi Sewage Treatment Plant (STP). The project is aimed at intercepting untreated sewage before it enters the Mithi River, Mumbai's primary stormwater channel.
The 17.8-km-long Mithi River, which drains a 7,295-hectare catchment, carries surplus water from Powai and Vihar lakes during the monsoon while also receiving untreated sewage throughout the year.
Based on a feasibility study and Detailed Project Report prepared by a consultant appointed by the BMC, the civic body adopted a four-phase strategy to reduce pollution in the river.
Under Phase IV, the tunnel has been designed to divert an estimated 168 million litres per day (MLD) of dry-weather flow, projected by 2051, from Bapat Nullah and Safed Pool Nullah to the proposed Dharavi STP for treatment.
GST Hike Raises Cost
The contract was awarded in 2021 to the J. Kumar Infraprojects Ltd.–Michigan Engineers Pvt. Ltd. joint venture for Rs 604.30 crore, with a four-year completion period, including the monsoon months. Tunnel excavation has been completed and the project has achieved 96.67% progress, with only shaft-related works remaining.
While the BMC is processing an extension to complete the balance work, the contractor has sought reimbursement of the additional GST burden following the Centre's revision of the tax rate, prompting the civic body to seek approval for the revised project cost.
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The Mithi River originates near Vihar Lake and empties into the Arabian Sea at Mahim Causeway. Of its 17.8-km length, 6 km falls under the jurisdiction of the Mumbai Metropolitan Region Development Authority (MMRDA), while the remaining 11.8 km is maintained by the BMC.
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