The project involves the design and construction of a tunnel to transport desalinated water from the proposed pumping station at Manori to Charkop, extending further to Mahavir Nagar in Kandivali.
The contract, valued at ₹1,918 crore, includes Goods and Services Tax (GST) as well as operations and maintenance (O&M). The company did not disclose the execution timeline.
Why this project matters
The project forms a key part of Mumbai’s long-term strategy to diversify its water supply.
Unlike the city’s existing water system, which depends largely on reservoirs filled by the monsoon, desalination converts seawater into drinking water. Once the desalination plant becomes operational, the tunnel will transport treated water to different parts of the city.
The takeaway is significant: while desalination plants receive much of the attention, they cannot serve consumers unless supporting infrastructure such as pumping stations and transmission tunnels is built. This project creates the network needed to move desalinated water from the coast into Mumbai’s distribution system.
As climate variability and rising urban demand increase pressure on conventional water sources, cities have been investing in alternative water infrastructure to improve supply security.
Afcons strengthens BMC partnership
Commenting on the project, Executive Chairman Krishnamurthy Subramanian said the desalinated water conveyance tunnel represents an important step towards ensuring a sustainable water supply for Mumbai while showcasing the company’s engineering and execution capabilities.
Managing Director S. Paramasivan said Afcons was honoured to partner with the BMC once again and would execute the project while maintaining high engineering standards.
The latest order further strengthens Afcons’ relationship with Mumbai’s civic body.
The company is already executing the 7.13-kilometre Kasheli-Mulund underground water conveyance tunnel for the BMC, another major project aimed at strengthening Mumbai’s water distribution network.
Expanding water infrastructure portfolio
Beyond Mumbai, Afcons has been building a sizeable portfolio in water and underground infrastructure.
Its ongoing projects include CIDCO’s 8.7-kilometre treated water tunnel in Navi Mumbai, a rural water supply scheme in Uttar Pradesh and a water supply project in Rajasthan.
The company has also been executing hydroelectric, tunnelling and transportation infrastructure projects across India, making water infrastructure an increasingly important part of its order book.
For engineering and construction companies, such long-duration public infrastructure contracts provide revenue visibility over multiple years while strengthening their credentials in specialised construction segments.
Arbitration award adds to recent developments
Separately, Afcons recently received a favourable arbitration award relating to claims arising from a tunnel project in Jammu & Kashmir.
The award of ₹148.67 crore pertains to balance work on Tunnel T74-R on the Dharam-Qazigund section of the Udhampur-Srinagar-Baramulla Rail Link (USBRL) project.
The latest contract and the arbitration award together add to a series of recent developments for the Shapoorji Pallonji Group company as it continues to expand its presence in complex engineering and infrastructure projects across the country.
