HomeInfrastructureBMC's SoBo Road Project Faces Criticism Over INR 150 Crore Cost Surge

BMC’s SoBo Road Project Faces Criticism Over INR 150 Crore Cost Surge

MUMBAI: The Brihanmumbai Municipal Corporation (BMC) has selected a new contractor for the cement concrete (CC) road project in south Mumbai, despite the bid coming in approximately INR 150 crore above BMC’s initial estimate.

This decision has sparked controversy, with the Bharatiya Janata Party (BJP) criticizing the BMC for awarding what they call “an excessive bonanza” to the winning company. Earlier this year, BMC terminated a INR 1,600-crore contract with Roadways Solution Infra India Limited (RSIIL) for the same south Mumbai CC project, which has yet to commence despite being inaugurated by Prime Minister Narendra Modi 18 months ago.

A former BJP corporator from Colaba has expressed concern, stating that similar CC road contracts in other parts of the city were awarded within budget, and the same standard should apply to south Mumbai. NCC Ltd emerged as the lowest bidder for the contract worth INR 1,600 crore, bidding 9% above BMC’s estimate. The BJP official emphasized the potential taxpayer loss due to any contract exceeding estimated costs. Data reveals that only 15% of the CC road work across five zones, excluding south Mumbai, has been completed as of May 2024. There is urgency for BMC to initiate concreting post-monsoon in south Mumbai to alleviate citizen inconvenience. The official suggested adopting ward-wise contracts to expedite project commencement.

An additional municipal commissioner acknowledged the bid being higher than expected, noting ongoing negotiations with the bidder to finalize the terms. He reassured that BMC is working towards a resolution. Recently, a Shiv Sena (UBT) MLC raised a breach of privilege motion against a party minister for allegedly providing misleading information in the legislative council. The minister had claimed that RSIIL was blacklisted and fined INR 64 crore, which was disputed as RSIIL remains operational and the matter is under arbitration.

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