Evaluation of the costs and benefits of mumbai sewage disposal project, India

Abstract

Municipal Corporation of Greater Mumbai intends to undertake Mumbai Sewage Disposal (MSDP) for improvement of environment in and around Mumbai city. Sewage generated from the city currently gets into nearby marine water body. This paper addresses the cost benefit analysis of MSDP works for better compliance of sewage treatment and disposal. Cost benefit analysis indicates that the investment in sewage treatment is economically beneficial and will provide immense social, environmental and economic benefits. Positive benefits such as improved tourism, avoided health costs and enhanced fish catches can be a major outcome of the project. The total capital cost of the project is estimated to be about INR 51510 million and operation and maintenance cost is about INR 2240.6 million. The cost benefit analysis indicates that a benefit of about 25855 million per year due to implementation of this project. The direct cost benefits alone indicate the positive result which is expected due to this project implementation.