India, March 12 -- The BMC's much-awaited Rs.5,396-crore Gargai dam project on the Gargai river in Palghar's Wada taluka was referred back by the civic standing committee on Wednesday. The project, considered crucial for Mumbai, is expected to initially add 450 million litres per day (MLD) to the city's water supply.

The proposal was sent back to the civic administration after corporators raised concerns that the dam contract value was about 11% higher than the initial estimate. BJP corporator and group leader Ganesh Khankar raised the issue of the cost escalation during the discussion, and BJP corporators demanded that the cost be brought on par with the original estimate.

The suggestion to refer the proposal back, raised by former may...