Mumbai BMC’s Standing Committee approves Gargai project

Brihanmumbai Municipal Corporation’s (BMC) Standing Committee has given a green signal to the controversial Gargai dam proposal in Palghar district in Maharashtra at a revised cost of ₹3,065.68 crore. Earlier, the panel stalled the project due to price escalations and environmental concerns.

After the majority of panel members voted in favour of the project, BMC’s Standing Committee approved the cost escalation of more than ₹2,000 crore, with the current cost of the project, including taxes, being ₹5,051 crore. Despite objections from the opposition, Standing Committee chairman Prabhakar Shinde put the motion to a voice vote, where the majority voted in favour. 

Mahayuti corporators reasoned that the project is needed to meet Mumbai’s increasing water requirements on a priority basis. Besides, the project cost escalations have been reduced from 9% to nearly 2% above the estimate. BJP leader Ganesh Kankhar said, “It has been considered only after the contractor agreed to work at the par rates.” Mumbai’s current demand is 4,665 MLD per day, while supply is 4,100 MLD.

The Gargai project has been long overdue, as it was originally conceived in 1994, and was reinitiated by the Mahayuti government in 2019 to build a research project to procure 440 million litres per day (MLD) for Mumbai. The projects received objections as it is likely to affect 3.10 lakh trees and villagers. 

On March 11, the Committee stalled the project as the cost rose to ₹5,396 crore, including taxes, asking the administration to explain the escalation. The original project cost was ₹3,006 crore, which has now risen to ₹3,065 crore, excluding taxes. Earlier, after the tenders were floated in December 2025, the two companies, Soma Enterprises Limited and Hindustan Construction Company, quoted a higher price, with Soma bidding ₹3,276 crore.

The project is sanctioned to build the 972 metre dam on the Gargai river, a sub-tributary of the Vaitarna river, to become the eighth reservoir to supply water to Mumbai. Congress group leader Ashraf Azmi asked, “If costs have escalated without any work done, then in the next two years, what is the guarantee that the price will not go up to ₹7,000 crore?” He also raised concerns around the environmental impact of the project and the displacement of villagers. 

The Standing Committee will also appoint a special cell consisting of 10 officers for one year to look into land acquisition.