The dam will be built at a cost of around Rs 1,400 crore. The dam will come up on the Kikwi river near Bramhanwade.
The Gangapur and Mukane dams would not be able to fully cater to the water needs of the growing city in future.
The storage capacity of Gangapur dam has reduced by 1.8 TMC over the years due to thick silt deposits. The officials have identified 912 ha of land to construct the new dam, which includes 172.47 ha of forest land.
An amount of around Rs 600 crore is required to acquire land for the dam project, while the remaining Rs 800 crore will be spent on the construction of the dam.