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The Brihanmumbai Municipal Corporation (BMC) is advancing the long-pending Gargai Dam project in Palghar district, with infrastructure firm Soma Enterprises expected to execute the main construction package. The project, estimated at over INR 5,100 crore after revisions, is designed to augment Mumbai's water supply by 440 million litres per day (MLD) and become the city's eighth water source. Planned near Ogada village in Wada taluka, the dam is targeted for completion by 2029 and is expected to play a key role in addressing Mumbai's rising long-term water demand.
The Brihanmumbai Municipal Corporation is moving forward with the Gargai Dam project, a major water infrastructure initiative that is expected to strengthen Mumbai's future water security by adding 440 MLD to the city's daily supply network. The project, proposed on the Gargai River in Palghar district's Wada taluka, is among the most significant water supply investments undertaken by the civic body in recent years.
The civic administration is expected to award the principal construction work to Soma Enterprises after a prolonged tendering and evaluation process. While the initial contract value was negotiated at around INR 3,276 crore, the overall project cost, including taxes, rehabilitation measures, environmental obligations and associated infrastructure, is estimated at more than INR 5,100 crore following revisions and negotiations.
The proposed reservoir will be developed through a 69-metre-high dam structure and connected to the existing Modak Sagar reservoir through a water tunnel, enabling the transfer of additional raw water into Mumbai's supply system. Civic officials view the project as critical to meeting future demand as population growth, urban expansion and commercial activity continue to increase pressure on existing resources.
Mumbai currently receives water from seven major lakes and reservoirs. However, demand has steadily increased over the years, prompting authorities to pursue new supply sources. The Gargai project is expected to become the first major reservoir addition to Mumbai's water network since the commissioning of the Middle Vaitarna project in 2014.
The project has also attracted scrutiny due to its environmental and rehabilitation requirements. Construction will affect six villages in the project area and involve the transplantation of approximately three lakh trees. Authorities have proposed compensatory afforestation across multiple districts and a rehabilitation programme for affected residents at a designated relocation site in Wada taluka.
Several rounds of discussions were held over project costs after concerns were raised regarding escalation above earlier estimates. Following negotiations with the contractor, the civic administration reduced the overall expenditure proposal before moving the project forward.
With a completion target of 2029, the Gargai Dam is expected to become a key component of
Mumbai's long-term water infrastructure strategy, helping the city address future supply gaps while supporting residential, commercial and industrial growth across the metropolitan region.
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