Poshir Dam Project: Navi Mumbai to Bear Largest Share of Rs 6,314 Crore Cost

Navi Mumbai, 23rd May, 2025: The Navi Mumbai Municipal Corporation (NMMC) will shoulder the highest financial burden in the ambitious Poshir Dam project aimed at resolving the water crisis in the Mumbai Metropolitan Region (MMR). Approved by the Maharashtra state government, the dam will be constructed on the Shilar River in Karjat taluka.

Out of the estimated ₹6,314 crore project cost, NMMC will contribute 43.53%, amounting to around ₹2,763 crore. Sources in the Urban Development Department suggest the total project expenditure may rise to ₹3,000 crore. In return, Navi Mumbai is set to receive the largest share of water from the dam—highlighting the city’s growing demand amid rapid urban expansion.

The Poshir Dam, with a planned capacity of 12.344 TMC (thousand million cubic feet), will allocate 7.933 TMC for drinking water and 1.859 TMC for industrial use. The project also includes the Mauje Shilar sub-project, with water supply planned for Panvel and nearby regions.

The initiative will benefit a wide area including Navi Mumbai, Ulhasnagar, Ambernath, and Badlapur. The state has based its planning on projected population growth by 2055, estimating 32 lakh residents in Navi Mumbai and 25 lakh in the surrounding MMR.

In addition to NMMC, cost-sharing responsibilities have been allocated to other agencies: Mumbai Metropolitan Region Development Authority (₹2,171 crore), Ulhasnagar Municipal Corporation (₹611 crore), Ambernath Municipal Council (₹452 crore), and Badlapur Municipal Council (₹375 crore). The Mumbai Metropolitan Region Authority (MMRDA) will act as the nodal agency overseeing project execution.

The project reflects the government’s long-term planning to tackle future water shortages in one of India’s fastest-growing urban belts, ensuring sustainable development backed by critical infrastructure investment.