Civic body floats tenders for construction of long-awaited project, which will be built at cost of Rs 3000 crore
The proposed site of the Gargai dam in Palghar district, about 110 km away from Mumbai. PIC/BY SPECIAL ARRANGEMENT
Over a decade since the project was first mooted, the Brihanmumbai Municipal Corporation (BMC) has taken the first step towards the construction of the Gargai dam, which will increase Mumbai’s annual water supply by 440 million litres (ML). On Tuesday, the civic body floated tenders for the construction of the Gargai dam at a cost of Rs 3000 crore. This cost covers the construction of the dam, along with the cost for environmental clearances required for the project.
In 2018-19, the BMC’s general body gave in-principle approval for the construction of the dam, with a provision to spend up to R3105 crore for the project. This cost covered the aspect of rehabilitation of project-affected persons from the area where the dam will be constructed and the cost of acquisition of land for their rehabilitation.
Displacement issues
The project, spread across approximately 2100 acres of land, will result in the submergence of two villages — Ogda and Khodade — in Wada taluka of Palghar district. The BMC also plans to acquire land from four adjacent villages — Pachghar, Aamle, Phasgaon, and Tilmal — to make the entire catchment area free of human habitation, and make the area congruent with the existing Tansa wildlife sanctuary. The project is set to affect 619 families, with plans to resettle them in 400 hectares of land near Devli.
To retain and continue supporting their tribal lifestyles, those residing in six villages of Wada taluka in Thane district, affected by the construction of the Gargai dam, will have their own homes with pigeon coops, cow sheds, and backyards in the tribal style.
The BMC has decided to pay them to build their homes instead of constructing new residences as part of the rehabilitation plan. The money is about five times the value of their current homes, and the cost has been determined by the public works department. The demand for this type of rehabilitation was made by concerned villagers in their ‘Gram Sabha Tharav’. The villagers are entitled to up to 2.5 hectares of forest land for tilling, and one government job per family. This is set to cost the civic body Rs 600-800 crore, in addition to the construction cost of the project.
Project fast-tracked
The project that has been stuck at the planning stage for a decade has now found impetus ahead of the BMC election. The last such poll was held in 2017. In September 2025, Ashish Shelar, then-Mumbai BJP chief and Maharashtra cultural affairs minister, directed the civic body to fast-track the project and float tenders on priority within a month.
Water supply gain
Seven lakes supply water to Mumbai at present, with a total capacity of 14,33,262 ML of water. The BMC supplies the city with 3950 to 4100 ML of water per day. However, as per the civic body's projections, Mumbai is set to need 29.87 per cent more water by 2031, or 5326 MLD, and 56.69 per cent more water by 2041, or 6424 MLD. Three proposed big-ticket projects are set to augment Mumbai's water supply — the Gargai and Pinjal dams, and the desalination plan planned at Manori.
Fact box
Mumbai’s present water supply
14,33,262 million litres
Gargai dam will add
440 MLD
Projected water requirement for Mumbai
Year 2031: 5325 MLD 29.87% more
Year 2041: 6424 MLD 56.68% more
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