The Greater Hyderabad Municipal Corporation (GHMC) has greenlit a substantial ₹67 crore increase in the budget for infrastructure improvements at LB Nagar junction, marking a significant development in the Strategic Road Development Plan (SRDP).
The decision, reached without debate during the general body meeting on Saturday, reflects adjustments across various project facets. Originally sanctioned at ₹448 crore, the revised budget now stands at ₹515 crore, attributing the rise to multiple factors including alterations in project components, additional works, price fluctuations, fund adjustments, and changes in tax regimes. The construction, managed by BSCPL Infrastructure Limited after a competitive tendering process at ₹304.9 crore (nearly 7.99% below the Internal Benchmark value of ₹331.38 crore set in 2015), encompasses several critical structures. Notably, adjustments in the scope have resulted in the exclusion of certain elements such as a flyover from Hayatnagar to Inner Ring Road and a three-lane underpass near Kamineni junction.
Moreover, modifications to accommodate the Metro Rail extension between Nagole and LB Nagar necessitated resizing the Kamineni junction to three lanes from four. In response, a new flyover at Nagole Junction has been proposed alongside maintenance works for road conditions at the construction site. Financially, savings of ₹16.8 crore from these adjustments will be allocated for service road formation, complemented by additional savings of nearly ₹30 crore from utility shifting tenders, with the remaining ₹3.63 crore earmarked for other essential adjustments.
However, challenges persist with the estimate’s price adjustment component falling short at ₹33.14 crore against a required ₹61 crore, attributed to rising costs of cement, steel, and petroleum products. The contracting agency has expressed concerns over continuing work without adequate price adjustments. Furthermore, tax modifications, including the transition from Value Added Tax to Goods & Service Tax and subsequent rate increases since 2015, have imposed an additional financial burden amounting to ₹58 crore. As the project navigates these financial complexities, the revision of ‘at grade road works’ costs has risen from ₹14.4 crore to ₹21.15 crore, reflecting ongoing adjustments to meet evolving project demands and regulatory frameworks. The GHMC’s proactive stance in approving these revisions underscores its commitment to advancing vital infrastructural projects amidst evolving economic landscapes and logistical challenges in Hyderabad’s urban development agenda.
