Adani-Led SPV Emerges as Lowest Bidder for ₹1,700 Crore Mithi River Rejuvenation Project in Mumbai

Mumbai — Following the successful acquisition of the massive Dharavi redevelopment project, the Adani Group is reportedly set to spearhead another critical urban infrastructure initiative in Mumbai. A Special Purpose Vehicle (SPV) comprising Adani Transport, Ashoka Buildcon, and Akshaya Infraproject Pvt Ltd has emerged as the lowest bidder for Package 3 of the ₹1,700 crore Mithi River rejuvenation project, which forms a crucial component of Mumbai's long-pending river revival plan.

The consortium's involvement has reportedly drawn criticism from the opposition. The Congress party has alleged political favouritism, claiming that the tender was manipulated in favour of the Adani Group. This development has intensified scrutiny around infrastructure contracts in Maharashtra, according to reports.

Scope of Package 3: Kurla to Mahim Estuary

The third package of the Mithi River rejuvenation project covers the final leg of the waterway, stretching from CST Bridge in Kurla to Mahim, where the river discharges into the Arabian Sea. This stretch has long been plagued by flooding, pollution, and informal sewage outlets, making it one of the most challenging segments of the river system.

The project scope reportedly includes several key components designed to address both flood control and pollution mitigation concerns. The initiative follows recommendations made by infrastructure consultant Frischmann Prabhu, which was appointed by the BMC in 2017 to develop a comprehensive long-term pollution and flood control plan for the river.

Key Project Components

• Installation of gate-pump assemblies at 18 river outfalls to prevent tidal backflow and pump out stormwater during heavy rains
• Construction of a large sewage pumping station, likely to be located at Machhimar Colony near Mahim
• Dry weather flow interceptor systems to divert untreated sewage to the Dharavi sewage treatment plant
• Retaining walls, sewer lines, and service roads to improve infrastructure and access along the riverbanks

The strategic importance of this package cannot be overstated, as it addresses some of the most flood-prone areas in Mumbai. The city's infrastructure development continues to attract significant attention, with MMRDA approving INR 12,546 crore projects to improve roads and bridges across the region.

Financials and Tender Process

The SPV had initially quoted 7.7 per cent above the project's base cost, which was subsequently negotiated down to 7.1 per cent. However, this figure remains higher than the BMC's original budget estimate. The tender was contested by major infrastructure players, including Afcons and Hindustan Construction Company (HCC), indicating significant industry interest in the project.

The project has been structured as a Design-Build-Operate (DBO) contract, wherein the SPV would not only execute the works but also operate and maintain the completed systems for a period of 10 years post-construction. The active work period has been set at 48 months, excluding monsoon seasons.

This infrastructure development comes at a time when major infrastructure transformation is reshaping Mumbai's future, with multiple large-scale projects underway across the metropolitan region.

Political Controversy Surrounds Contract Award

The contract award has reignited political controversy in Maharashtra. Congress spokesperson Sachin Sawant reportedly accused the government of deliberately postponing the tender to favour the Adani Group. He stated on social media that the tender had been consistently deferred from the beginning to ensure the work went to Adani.

The opposition has linked this decision to broader concerns about alleged crony capitalism and lack of transparency in large urban development contracts. This criticism comes amid heightened scrutiny of Adani's involvement in the Dharavi redevelopment, which the company has described as a bold step towards dignity for a million lives.

Next Steps and Approvals Required

The proposal for Package 3 has been forwarded for administrative approval and will proceed once requisite environmental clearances are in place. If approved, it would mark a significant phase in the broader Mithi River rejuvenation project, which has seen incremental progress over the past decade.

The rejuvenation of the Mithi River — often associated with Mumbai's worst urban flooding events, including the devastating 2005 deluge — is considered critical to mitigating flood risk, improving sanitation, and restoring urban ecology in some of the city's most congested and flood-prone areas.

Project Overview at a Glance

Broader Implications for Mumbai's Urban Development

This project represents a vital component of Mumbai's climate resilience strategy, though political headwinds could shape its narrative as much as engineering progress. The infrastructure development along Mumbai's eastern corridor continues to drive real estate growth, with improved flood management likely to enhance property values in affected areas.

The Adani Group's expanding footprint in Mumbai's infrastructure landscape also includes the massive Rs 36,000 crore Motilal Nagar project in Goregaon West, further cementing its position as a major player in the city's urban redevelopment initiatives.

Mumbai's ongoing transformation through multiple infrastructure upgrades is expected to significantly impact both travel convenience and real estate values across the metropolitan region in the coming years.

Disclaimer: This article is for informational purposes only. Readers are advised to verify all facts independently before making any investment or business decisions. The views expressed in this article do not constitute financial, legal, or professional advice. Ghar.tv does not endorse or validate any claims made by the parties mentioned in this report.