Mumbai, March 19: Facing sharp criticism from the civic standing committee over an 11% cost escalation above the BMC’s estimate, authorities have been forced into fresh negotiations with the lowest bidder, M/s Soma Enterprises Limited, on Friday for the Gargai Dam project.
The committee has taken a firm stand, demanding that the Rs 3,276 crore (after including taxes Rs 5,396 crore) project be awarded strictly at par with the original estimate, putting renewed pressure on the civic administration to rein in costs.
Cost escalation triggers fresh negotiations
The Gargai Dam Project was initially estimated at Rs 3,105 crore. After tenders were floated in December last year, the lowest bidder, Soma Enterprises Limited, quoted Rs 3,334 crore. Following negotiations, the company agreed to execute the work for Rs 3,276 crore.
However, the Standing Committee raised concerns over a 2% incentive on the total contract value granted to the contractor after negotiations, terming it unnecessary.
In a subsequent meeting on Wednesday, the committee again questioned the administration and directed it to hold fresh negotiations with the company to further reduce and align the contract cost.
Officials seek revised bid
A senior civic official said, "A meeting has been called with Soma Enterprises Limited, and the administration will seek its best possible revised price in line with the Standing Committee’s directions. A fresh proposal will then be placed before the next meeting of the Standing Committee."
According to sources, the company had earlier justified its higher bid during negotiations by citing cost escalation over the past two years since the project proposal was prepared in 2023, as well as the challenging and inaccessible terrain at Wada and Mokhada, where the dam is proposed to be constructed.
Project details and environmental impact
The Gargai Dam Project in Palghar’s Wada taluka is expected to augment Mumbai’s water supply by 440 million litres per day (MLD). The project proposes construction of a 69-metre-high dam near Ogada village, along with a 2.2 km tunnel to divert water to the Modak Sagar Reservoir.
Its implementation would require the felling of approximately 3.1 lakh trees, including areas within the Tansa Wildlife Sanctuary. As a result, the civic body will need to undertake compensatory afforestation on identified non-forest land.
Rising demand highlights urgency
The BMC supplies 4,000 MLD of water to Mumbai from seven lakes—Tansa, Bhatsa, Modak Sagar, Tulsi, Vihar, Upper Vaitarna, and Middle Vaitarna—with 34% lost to theft and leakages. Rising pollution and urbanisation have pushed demand to 4,463 MLD, expected to reach 6,900 MLD by 2041.
Also Watch:
The last major dam, Middle Vaitarna, was completed in 2014, highlighting the need for new projects like the Gargai Dam. The project is expected to be completed by 2029.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
