Mumbai: Ashoka Buildcon Ltd’s joint venture with Adani Road Transport and Aakshaya Infra has secured a major contract from the Brihanmumbai Municipal Corporation (BMC) to carry out development works along Mumbai’s Mithi River. The Letter of Acceptance (LoA), valued at Rs. 1,815.79 crore, was officially awarded on Wednesday, marking a significant addition to the company’s infrastructure portfolio.
The project, known as the Mithi River Development and Pollution Control Project (Package III), is aimed at upgrading and restoring key sections of the river, while improving flood management and urban infrastructure along the waterway. Under the contract, the JV will handle civil works such as dry-weather flow interception at tidal outfalls, installation of transfer sewers, river training, construction of service roads and retaining walls, and other allied works.
In addition to the construction and development phase, the project also includes a decade-long operations and maintenance component. The contract follows a Design, Build, and Operate (DBO) model, ensuring that the JV will be responsible for the river’s upkeep for ten years after the construction phase is completed.
The shareholding of the JV is structured with Adani Road Transport as the lead member holding 51%, Ashoka Buildcon at 26%, and Aakshaya Infra holding 23%. The design and build phase is expected to span 48 months, excluding monsoon periods, after which the long-term maintenance phase will commence.
“This project is not only a major contract win for our JV but also a critical urban renewal initiative for Mumbai,” said a company spokesperson. “It underscores the increasing focus on river restoration and sustainable infrastructure in the city, while strengthening our long-term operations and maintenance capabilities.”
The award comes at a time when Mumbai is accelerating several urban renewal and river restoration projects to manage flooding and improve city infrastructure. The Mithi River, which flows through heavily populated areas, has been a focus for environmental and civic authorities following past flooding incidents.
Investors responded cautiously to the news, with Ashoka Buildcon’s shares closing at Rs. 163.99, down 2.09% on the NSE ahead of the announcement. Despite the temporary dip, analysts see this project as a long-term growth driver for the company, given the scale, strategic importance, and extended operations period.
The Mithi River project highlights the growing trend of public-private partnerships in India’s urban infrastructure sector, combining private sector efficiency with civic objectives. For Ashoka Buildcon and its partners, the project represents both an opportunity to expand their footprint in Mumbai and to showcase their capability in large-scale river restoration and urban development works.
With the construction phase set to span four years and maintenance extending over the next decade, the project is expected to significantly improve river management, reduce pollution, and enhance the surrounding urban infrastructure, benefiting residents and businesses along the river corridor.
This contract marks a key milestone for Ashoka Buildcon and its JV partners, positioning them as major players in Mumbai’s ongoing efforts to modernize and safeguard its critical urban waterways.
