Increase of Rs.500 to Rs.650 crores in 18 months

The proposed solar power and hydropower project slated to be established on a Build-Operate-Transfer (BOT) basis at Morbe Dam has encountered a significant surge in costs, with estimates ballooning from Rs. 500 crores to Rs.650 crores in just a year and a half. This unprecedented escalation has raised eyebrows and sparked concerns over the management of project finances.

Since 2011, plans have been in motion to set up a 20-megawatt solar power and one and a half-megawatt hydropower project in the Morbe Dam area, owned by the Navi Mumbai Municipal Corporation (NMMC). Originally projected to cost Rs. 375 crores for 25 years of maintenance and repairs, the tendering process in 2014 initially saw Laptech Solutions Pvt. Ltd. winning the bid. However, due to market challenges in selling the generated electricity, the project was halted in July 2016 by then Municipal Commissioner Tukaram Mundhe to prevent potential financial burdens.

Efforts to revive the project gained momentum two years ago, under a new administration regime. Despite initial tender cancellations and technical hurdles, plans to restart the project have resurfaced, albeit with a significant cost escalation. The unexpected surge from 500 crores to 650 crores has sparked concerns and questions regarding the management of project finances and cost estimation.

Executive Engineer Praveen Gade from the Electricity Department of the Navi Mumbai Municipal Corporation shed light on the current status of the project, emphasizing that the approval for the 650 crores project is pending. “Once approved, the tender process will proceed, with the municipal corporation expected to purchase electricity at Rs. 3.90 paise (per unit) post-completion”.