The Maharashtra government's efforts to hire private players in the irrigation sector has landed in troubled waters as the Maharashtra Water Resources Regulatory Authority (MWRRA) has put on hold the state's decision to award Nira Deoghar irrigation project near Pune to a private party on a BOT basis.

Following the decision, Krishna Valley Irrigation Development (MKVIDC) has been asked to withdraw an advertisement it had issued to invite private bidders for the project. The verdict has come following a petition filed by NGO Prayas. As per the ruling, now the irrigation department will have to get back to the policy level and seek a policy revision if it wants to pursue the larger plans. It has brought all related future policy proposals under the purview of MWRRA Act passed by the state in 2005.

In September 2007, MKVIDC had invited EoIs from private parties for the incomplete 13 TMC capacity Nira Deoghar irrigation project. The MKVIDC proposed that the successful bidder will make a capital investment of Rs.1,000 crore to complete the project and recover the cost through tariff over the BOT period.