The dam, which was built at Ambernath during the British era, provided water to fuel steam engines in use at that time.
The Railway Board has granted the required approval for the Central Railways to transfer the land and dam located at Ambernath to the Indian Railways Catering and Travel Corporation (IRCTC), which will set up the bottling plant and processing unit there, a senior Central Railways official said.
"Central Railways is already in the process of handing over the land and the water body to the IRCTC who are expected to take possession by next month," the official said.
The IRCTC is expected to set up the facilities to treat and bottle the water from the dam which was found to have water that met the required standards.
The IRCTC presently sells the bottles of Rail Neer, a scheme started in 2003, at many of its stations and the quality of the water is said to meet standards of purity and pesticide levels prescribed in Europe.
The bottles, which are available at railway retail outlets for Rs 10, are in short supply in the city and surrounding areas, which will be dealt with by the introduction of the new plant, officials added.
