LESS THAN a month after the Brihanmumbai Municipal Corporation’s (BMC’s) standing committee stalled the Gargai dam proposal in Palghar district over cost escalation concerns, the panel on Wednesday cleared the project, which will now come up at a revised cost of Rs. 3,065.68 crore or 1.96 per cent over the previous cost estimate.

Eyeing to augment Mumbai’s potable water supply by 450 MLD or million litres per day, the BMC has charted plans to develop the Gargai water supply project, which entails the construction of a 972-metre-long dam on the Gargai, which is a sub-tributary of Vaitarna river.

According to BMC documents, the original estimated cost of the project was Rs 3,006 crore. Tenders were floated in December last year, and two firms, Soma Enterprises Limited and Hindustan Construction Company, submitted bids higher than the estimate. When the work order was ultimately awarded, the estimate had gone 8.9 per cent over the cost.

Then, on March 11, the committee stalled clearances for the proposed project, citing concerns over the cost escalation, environmental impact, and rehabilitation of affected villagers.

Referring the proposal back to the administration, the committee had directed officials to reconvene to renegotiate the costs. Following this, the BMC held rounds of negotiations after which the contractor agreed to execute the project at nearly 2 per cent over the estimated cost.

Confirming the revised costs of the Gargai dam project, the final order was awarded at Rs 3,065.68 crore.

Earlier, when the proposal was re-tabled, the standing committee cleared the proposal despite fierce opposition from the Shiv Sena (UBT) and the Congress.

While the ruling Mahayuti hailed the revised proposal, the opposition flagged concerns over the rehabilitation of the project-affected persons and tree transplantation.

Ganesh Khankar, a BJP leader in the BMC, said that amid rising water demands, the project was a necessity. “After concerns of higher costs were flagged, the proposal was sent back, and we have ensured that the contractor agrees to work with at par rates,” he added.

Also, amid concerns of land acquisition, the committee also cleared a proposal to induct a special land acquisition cell. Comprising ten officials, the special cell will be inducted on temporary provision and functional for a one-year period starting April 1 (Wednesday).