Mumbai, March 9: After decades of discussion, the Gargai Dam is finally on track, with the BMC set to award the contract to M/s Soma Constructions. The project saw a cost escalation of Rs 171 crore, with the final contract settled at Rs 3,276 crore, about 5.5% above the 2020 estimate. Including taxes and other charges, the total project cost is expected to reach Rs 5,396 crore.
Envisioned as Mumbai’s eighth water source, the dam is expected to augment the city’s supply by 440 million litres per day (MLD). The proposal will now be placed before the BMC Standing Committee for final approval.
Project history and tender process
Originally planned by the BMC in 1994, the Gargai Dam project was reinitiated by the Devendra Fadnavis-led government after being scrapped by the Maha Vikas Aghadi (MVA) government in 2019. Following delays, the BMC floated the tender in December 2025, a month ahead of the 2026 civic elections.
The project includes a 69-metre dam near Ogada village and a 2.2-metre tunnel to channel water to the Modak Sagar Reservoir. The BMC targets completion by 2029. A provision of Rs 437.51 crore has been proposed in the Budget Estimates 2026–27 for Gargai project.
Phased implementation plan
"After the work order for the Gargai Dam is issued, the first year will focus on securing mandatory permissions and relocating six affected villages. Dam construction is planned in the second year, followed by installation of a 1,200-kW hydropower unit in the third year to offset electricity costs," said a civic official.
Environmental impact and rehabilitation
However, the Gargai Dam project carries significant environmental implications with two villages directly affected by the dam and four more for relocation.
An official clarified that, "About 3.1 lakh trees will be transplanted, compensatory afforestation is planned across 658 hectares in Washim, Chandrapur, and Hingoli, while all residents from affected villages will be shifted to Devali in Wada Taluka with full infrastructure."
Mumbai’s growing water demand
The BMC currently supplies 4,000 MLD of water to Mumbai, with 34% lost to theft and leakages, sourced from seven lakes: Tansa, Bhatsa, Modak Sagar, Tulsi, Vihar, Upper Vaitarna, and Middle Vaitarna. With growing pollution and urbanisation, daily demand has surged to 4,463 MLD and is projected to reach 6,900 MLD by 2041.
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The last major dam, Middle Vaitarna, was completed in 2014, underscoring the need for new projects like Gargai Dam to meet future water requirements..
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