Mumbai, April 1: After prolonged debate, the BMC standing committee cleared the Gargai dam project on Wednesday, despite opposition from the Shiv Sena (UBT) and the Congress.
The UBT faction advocated desalination as an alternative, while Congress argued the proposal was premature, citing incomplete rehabilitation of affected persons and pending tree transplantation.
However, the BJP claimed it reduced cost escalation from 9% above the BMC's estimated rate to 1.96%, saving Rs 269 crore on the base cost and Rs 345 crore including taxes.
Project details and cost revisions
The Gargai Dam project, a 69-metre dam in Palghar designed to supply 450 million litres of water per day (MLD) to Mumbai, is regarded as a brainchild of Chief Minister Devendra Fadnavis. Originally proposed in 2017, the project was revived by the Mahayuti government in 2025 after being shelved by the previous administration.
Meanwhile, the project’s approval had been delayed by the standing committee as the lowest bidder, M/s Soma Enterprises Ltd., initially quoted Rs 3,276 crore, about 9% above the estimate (down from an initial 10.9%).
Following three rounds of negotiations over the past two weeks, the bidder agreed to reduce the cost to 1.9% above the estimated value. Consequently, a fresh proposal for the Gargai Dam’s construction was placed before the standing committee for final approval on Wednesday.
Opposition and alternative proposals
The desalination plant project in Manori, in the western suburbs, has been actively promoted by Shiv Sena (UBT) MLA and former Environment Minister Aaditya Thackeray.
Challenging the Gargai Dam project, Shiv Sena (UBT) corporator Yashodhar Phanse suggested putting the dam proposal on hold and prioritising the desalination plant, which is expected to supply 400 MLD of water within the next two years, while the Gargai Dam remains uncertain due to pending environmental clearances.
Congress group leader Ashraf Azmi supported Phanse, pointing out that the BMC has yet to rehabilitate the affected villagers and complete the afforestation of 3.10 lakh trees, questioning why the administration is rushing the project without completing these preparatory steps.
Support from ruling party
Meanwhile, Leader of the House Ganesh Khankar said, “The city is facing a water shortage, with several wards, including Borivali, where I represent the people, struggling for water. At a time like this, projects such as the Gargai Dam need to be fast-tracked. Anyone who tries to block it will not be forgiven by the people.”
BJP’s Sheetal Gambhir congratulated the BMC for saving Rs 269 crore on the project. Phanse's suggestion to record the proposal was rejected by a majority, and the original proposal for constructing the dam was approved. The project, quoted at Rs 3,276 crore, is now proposed at Rs 3,065 crore, reducing the total cost including taxes from Rs 5,396 crore to Rs 5,051 crore.
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Next steps and timeline
"After the work order is issued, the project will still require clearances from the Central Wildlife Board and state and central forest departments. The first year will focus on securing permissions and creating infrastructure to relocate six affected villages, followed by dam construction in the second year and installation of electrical systems in the third year," said a senior civic official. The project includes a 1,200 kW hydropower unit to offset the dam’s electricity costs.
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