Panvel Gets 500 MLD Water Allocation From Shilar Project; ₹3,672 Crore Cost To Be Borne By PMC

Panvel Gets 500 MLD Water Allocation From Shilar Project; ₹3,672 Crore Cost To Be Borne By PMC

The Maharashtra government has allocated 500 MLD of water to Panvel from the proposed Shilar project in Karjat, aimed at meeting the city’s needs up to 2057. PMC will bear 75.42% of the project cost, estimated at Rs 3,672.75 crore, while the project is expected to take about five years to become operational.

Sameera Kapoor MunshiUpdated: Tuesday, September 08, 2026, 11:50 PM IST
Panvel Gets 500 MLD Water Allocation From Shilar Project; ₹3,672 Crore Cost To Be Borne By PMC
The proposed Shilar project is expected to significantly augment Panvel’s water supply and address its long-term requirements | AI Generated Representational Image

Panvel, September 8, 2026: The state government water allocation of 500 million litres per day (MLD) for the Panvel Municipal Corporation (PMC) from the proposed Shilar project in Karjat taluka, a move expected to address the city's long-term water requirements up to 2057.

Existing Water Deficit

The additional allocation comes at a time when Panvel is already facing a water deficit. The civic body currently receives around 210 MLD from six different sources, including Morbe Dam, Hetawane water supplied by CIDCO, the Ulhas River, Patalganga River and Dehrang Dam of PMC. The existing supply caters to a population of around 5.4 lakh, but the city currently faces a deficit of approximately 30 MLD.

The Shilar project is being developed by the Irrigation Department and is expected to provide a substantial additional source for Panvel's growing water requirements. However, the project is still under development and is likely to take another five years to become operational.

Financial Commitment For PMC

The increased water reservation, however, comes with a significant financial commitment for PMC. According to the revised proposal, the civic body will bear 75.42% of the project's total capital expenditure, amounting to approximately Rs 3,672.75 crore.

The Shilar project was originally conceived to meet the growing water requirements arising from rapid urbanisation and industrial development in the Mumbai Metropolitan Region (MMR). The initial plan envisaged supplying water to Panvel, Navi Mumbai and other areas under the MMRDA.

However, the state government has approved the demand for providing Navi Mumbai Municipal Corporation (NMMC)'s full water reservation from the proposed Poshir project, resulting in a revised allocation for Shilar.

Long-Term Water Security

The revised allocation is expected to strengthen Panvel's long-term water security as the population and industrial activity in the region continue to expand.

However, the immediate challenge remains bridging the existing deficit until the Shilar project becomes operational. Once commissioned, the additional allocation is expected to substantially augment the city's water availability and reduce pressure on its existing sources.

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The project, therefore, represents a long-term solution to Panvel's growing water needs, although the substantial financial contribution required from the civic body and the estimated five-year construction period remain key considerations.

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