The Maharashtra State Road Development Corporation (MSRDC) has announced plans to construct a dam in the 186.72 sq. km area near Khandala to facilitate the development of 71 villages located off the Mumbai-Pune Expressway.

The initiative aims to secure a reliable water supply for the region, which currently lacks a well-developed water infrastructure. MSRDC will begin by conducting a study to identify potential water sources for the reservoir that will supply the project area. Previously, this zone was part of the Navi Mumbai Airport Influence Notified Area (NAINA) before the state government designated MSRDC as the Special Planning Authority in March 2016.

According to MSRDC officials, the area spans Panvel and Khalapur talukas in Raigad district and had a population of 1,01,175 as per the 2011 census, a figure expected to have increased. The site is strategically located between Mumbai and Pune, approx. 45 km from Mumbai, 80 km from Pune, and about 20 km from Navi Mumbai. Despite nearby sources like Morbe and Devloli dams and the Patalganga River, the region's future water supply remains uncertain. A detailed project report will be prepared over the next year, and a technical consultant will assist with the bidding and contractual process.