Mumbai News: BMC Finalises ₹11,166 Crore Manori Desalination Plant Deal With GVPR Engineers After Bid Cut Of ₹494 Cr

Mumbai News: BMC Finalises ₹11,166 Crore Manori Desalination Plant Deal With GVPR Engineers After Bid Cut Of ₹494 Cr

After successful negotiations, the BMC has signed a letter of acceptance with the lowest bidder, Hyderabad-based GVPR Engineers Limited, for the ambitious desalination plant project at Manori in the western suburbs. The company, which had initially quoted 26% above the base price, eventually lowered its bid by Rs 494 crore.

Shefali Parab-PanditUpdated: Friday, December 05, 2025, 01:18 AM IST
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BMC's Manori desalination project clears negotiation stage; GVPR Engineers finalised at Rs 11,166 cr | File Photo

Mumbai, Dec 04: After successful negotiations, the BMC has signed a letter of acceptance with the lowest bidder, Hyderabad-based GVPR Engineers Limited, for the ambitious desalination plant project at Manori in the western suburbs. The company, which had initially quoted 26% above the base price, eventually lowered its bid by Rs 494 crore.

The project now carries a total estimated cost of Rs 11,166 crore, covering 20 years of maintenance as well as electricity charges, taxes and other operational expenses required to run the freshwater facility. On Thursday, the civic body also issued a separate tender for the project’s supporting infrastructure.

Project cost and layout

The proposed Manori desalination plant will have an initial capacity of 200 million litres per day (MLD), expandable to 400 MLD. Following negotiations, the total project cost is estimated at Rs 11,166.17 crore. Of this, Rs 4,077 crore is allocated for construction, while Rs 2,067 crore covers 20 years of maintenance.

Electricity requirements are included, with associated costs of Rs 3,646.57 crore. The total also factors in 18% Goods and Services Tax (GST), physical contingencies and other related expenses. According to official sources, the contract agreement will be executed once all technical and legal requirements are fulfilled.

Tender for supporting infrastructure issued

To integrate the additional water generated by the desalination project into the water supply system, it will need to be transported from Manori to Charkop and then to the tunnel shaft at Mahavir Nagar in Kandivali. A tender for the design and construction of the conveyance tunnel was invited on Thursday.

The construction work for the Manori desalination project is expected to commence in 2026. On December 4, 2023, the BMC floated a tender for the construction of the plant on a 12-hectare plot in Manori village. After four unsuccessful attempts, the project finally attracted bids from several prominent firms.

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GVPR Engineers Limited emerged as the lowest bidder upon opening Packet C. The company is already involved in the design, construction and operation of BMC’s 337 MLD Ghatkopar Sewage Treatment Plant. Currently, the BMC supplies 4,100 MLD of water to Mumbai.

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