Adani-Led Consortium Secures Major Mumbai River Rejuvenation Contract
The Brihanmumbai Municipal Corporation (BMC) has officially awarded the ambitious Mithi River rejuvenation project to a special purpose vehicle (SPV) led by the Adani Group, marking a significant step in Mumbai's infrastructure development. The decision, finalized in late November 2025, comes after months of tender processes and negotiations.
The winning consortium comprises Adani Transport alongside Akshaya Construction and Ashoka Buildcon Limited, who will undertake the comprehensive river restoration initiative. The project, valued at approximately Rs 1,700 crore, represents one of Mumbai's most crucial environmental and urban infrastructure undertakings.
Financial Details and Bidding Process
According to civic authorities, the Adani-led SPV initially submitted final bids 7.7% above the base cost of Rs 1,700 crore. Following negotiations, this premium was reduced to 7.1% above the base price, resulting in the BMC paying slightly more than the originally estimated project cost.
An official familiar with the tender process explained: "As per the conditions on the basis of work orders were issued, BMC will have to pay 7.1% more to the contractor than the base price of Rs 1,700 crore or else will have to discard the tender and go for a fresh tender."
The BMC had initially floated tenders for this project in February 2025 with an estimated cost of Rs 2,300 crore. However, the civic body received no responses from bidders, prompting a revised tender at the reduced amount of Rs 1,700 crore in September 2025.
Project Scope and Flood Control Measures
The comprehensive rejuvenation project encompasses multiple critical components designed to address Mumbai's perennial flooding issues. Key elements include:
- Construction of a service road with protective wall between Mahim Causeway and CST bridge at Vakola
- Installation of floodgates at 25 strategic locations
- Establishment of one sewage treatment plant
- Development work along an 8.5 km stretch of the 17 km river
A BMC official elaborated on the flood control mechanism: "The floodgates will lead to controlled flow of water during high tide which will create a systematic mechanism against flooding at the low-lying areas of Vakola, Santacruz, Mahim and Bandra."
The primary objectives of this massive undertaking are mitigating river overflow during monsoon seasons and significantly improving existing water quality in the Mithi River, which has been a longstanding environmental concern for Mumbai residents.
Political Controversy and Allegations
The tender award has not been without controversy, with opposition leaders raising serious concerns about the bidding process. Mumbai Congress spokesperson Sachin Sawant has alleged malpractices in the tender allocation process.
Sawant claimed: "In the project tender, the turnover requirement for pump manufacturing companies was increased from Rs 50 crore to a staggering Rs 210 crore. This was a blatant violation of guidelines. Eligibility criteria were tightened after the pre-bid meeting and competition was deliberately killed."
The Congress leader further alleged that "all this was done only to ensure that the Adani company becomes the sole eligible bidder" and accused the BMC of functioning "entirely under political pressure."
However, civic authorities have defended the process, stating: "The process of awarding the tender was carried out as per the rules. Usually, the lowest bidder is being given the work order and here also the same was selected because the other two bidders had quoted their prices that was way above the overall base price."
The Mithi River rejuvenation project represents a critical infrastructure initiative for Mumbai, aiming to transform the city's relationship with its central waterway while addressing chronic flooding issues that have plagued the metropolis for decades.
