Pune: Megha Engineering, the company previously embroiled in controversy over the electoral bond scheme, has been awarded the contract for the ₹1,600 crore Khadakwasla Dam to Phursungi Tunnel Water Project.

This development follows the company securing contracts for three stages of the Maharashtra State Road Development Corporation’s (MSRDC) Ring Road project, which had sparked political debate.

The work order for the water tunnel project was issued just before the enforcement of the election code of conduct.

The Water Resources Department has detailed plans to transport water through a 28-kilometer tunnel from Khadakwasla Dam to Phursungi. The project’s detailed report, prepared by the department, has already been approved by both the Chief Engineer and the State-level Technical Advisory Committee.

In September 2024, the state government gave its final approval for the project, leading to the swift initiation of the tender process by the Water Resources Department, with a deadline for submissions set at 30th September.

The project, expected to cost over ₹2,000 crore, attracted bids from Megha Engineering, Navayuga, and another company in partnership. Megha Engineering was selected as the qualified bidder.

A source from the Water Resources Department confirmed that the work order was issued prior to the implementation of the election code of conduct, adding to the possibility of political disputes arising from the decision.

The Khadakwasla-Phursungi tunnel is designed to be 7.80 meters wide, 3.90 meters high, and have a circular height of 1.950 meters. The 28-kilometer-long tunnel will transport water using gravity, increasing the canal's capacity to 1,510 cusecs.

The project is expected to reduce water pollution, leakage, and evaporation, resulting in a saving of approximately 2.5 TMC (billion cubic feet) of water. Additionally, it will supply water for irrigation to an extra 3,472 hectares of land.