AMC’s Housing Projects Face Rs 46 Crore Setback Amid Contractor Delays
The Ahmedabad Municipal Corporation (AMC) is grappling with a significant financial setback as it faces an additional cost of Rs 45.94 crore for two housing projects, following the blacklisting of two contractors who failed to complete their work. These stalled projects in Motera and Thaltej, initiated five years ago, will now require a fresh tender process to appoint new contractors to finish the pending tasks, leading to a marked increase in project expenses. The housing committee’s approval of a proposal to engage new contractors has triggered this rise in costs, underlining the challenges faced by the AMC in managing delayed urban development projects.
The Motera-Koteshwar housing project, which was initially sanctioned with a Rs 67.53 crore budget for 1,520 homes, had been expected to make significant strides. However, the firm Jyoti Infratech’s inability to complete the work led to its blacklisting in June 2023, and the project’s revised cost now stands at Rs 104.36 crore. Similarly, the Thaltej project, which had a much smaller budget of Rs 11.75 crore for 1,190 houses, has been revised to Rs 20.86 crore, following delays caused by Sanghani Infrastructure India Pvt Ltd. These escalated costs not only reflect inefficiencies but also strain the city’s fiscal resources.
The AMC has stated that it intends to recover these additional costs from the blacklisted firms. However, internal sources suggest that this recovery may not be feasible, raising concerns over the long-term impact on the corporation’s budget and public trust. The continued delays in these essential housing projects are also a reminder of the broader challenges facing urban development in the city, as the demand for affordable housing remains high. While extensions have been granted for other ongoing projects, the situation in Motera and Thaltej casts a shadow over AMC’s ability to meet its commitments to the city’s growing population.
From a sustainability perspective, the delays in these projects are not just a financial burden; they also hinder the timely delivery of much-needed homes in a rapidly urbanising environment. As the city continues to expand, urban infrastructure projects like housing must incorporate green building technologies, energy efficiency, and waste management solutions. By doing so, the AMC can align with the broader sustainability goals of reducing the environmental impact of construction and ensuring long-term resilience in the face of climate change. Urban sustainability is not just about timely completion; it’s about building the cities of tomorrow with an eye on the future.
