Adani-Ashoka Buildcon JV Wins Bid For Mumbai's Mithi River Cleaning Project Worth Rs 1,800 Crore
The Brihanmumbai Municipal Corporation awarded the Letter of Acceptance to the bid submitted by Adani-Ashoka-Aakshaya.
A joint venture of the Adani Group and Ashoka Buildcon Ltd. on Wednesday secured the bid to clean and develop Mumbai's heavily polluted Mithi River at a project cost of Rs 1,816 crore.
The Brihanmumbai Municipal Corporation awarded the Letter of Acceptance to the bid submitted by Adani-Ashoka-Aakshaya, which is 51% owned by Adani Road Transport Ltd., 26% by Ashoka Buildcon and 23% by Aakshaya Infra Projects Pvt., according to a stock exchange filing.
The Mithi River Development and Pollution Control Project (Package III) has been awarded under a Design, Build, and Operate (DBO) model to improve river health and reduce pollution in one of Mumbai’s critical waterways.
The scope of work includes interception of dry weather flow at tidal outfalls with gate pumps, construction of transfer sewers, river training, development of service roads, retaining walls, and allied works. The project also covers the Vakola River and spans from CST Bridge in Kurla to Mahim Causeway.
The time period to complete the construction phase is 48 months excluding monsoon period. In addition, the contract mandates operation and maintenance for a period of 10 years.
Mithi River runs through Mumbai's densely populated and industrial areas and carries overflow discharges of Powai and Vihar lakes. The river meets the Arabian Sea at Mahim Creek, travelling a total length of about 18km and with a catchment area of 7,295 hectares. The river is a natural drainage channel that carries excess water during monsoons.
Earlier this month, Ashoka Buildcon received an additional work order valued at Rs 447.21 crore for the Sion–Panvel Highway improvement project from the BMC. With this expansion in scope, the total project value increased to Rs 1,573.79 crore.
The Nashik-headquartered company is a key player in the infrastructure sector, concentrating on EPC business in highways, railways, and buildings.
Shares of Ashoka Buildcon settled 1.9% lower at Rs 164.5 on the BSE, ahead of the announcement, compared to a 0.3% decline in the benchmark Sensex. The stock is down 47% on a year-to-date basis.
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