HomeBreaking NewsPanvel Civic Headquarters Faces Proposed Rs 371.69 Crore Cost Increase

Panvel Civic Headquarters Faces Proposed Rs 371.69 Crore Cost Increase

Panvel Municipal Corporation is set to consider a proposal for an additional Rs 371.69 crore for its delayed ‘Swarajya’ administrative headquarters at the general body meeting scheduled for 9 September 2026. The proposed increase includes Rs 120.13 crore for construction and Rs 251.55 crore for interior decoration and related works.

The proposal concerns the municipal corporation’s new administrative headquarters, planned on a five-acre plot acquired from the City and Industrial Development Corporation for Rs 28 crore opposite Karnala Sports Academy. The project was initially estimated to require Rs 140 crore for construction and Rs 160 crore for interiors.

According to the proposal reported by Loksatta, the project has faced delays and a technical review by the architect, project management consultant and municipal corporation identified the need for changes to the building design. The revised construction estimate includes additional architectural elements such as glass-fibre-reinforced concrete, stone cladding, a façade system, a dome system, aluminium fins and a fire-resistant paint system.

The administration has stated that these changes are required to improve the building’s long-term durability, energy efficiency, ease of maintenance and architectural quality. The proposed construction expenditure for the first phase is Rs 120 crore, 13 lakh, 65 thousand and 594.

The second proposal relates to interior decoration and other associated works. An earlier work order for this component had been issued to Konkan Railway Corporation Limited. However, a 28 July resolution of the standing committee removed the work from the company, and the municipal corporation is now proposing a fresh tender process. The estimated cost for this component is Rs 251 crore, 55 lakh, 58 thousand and 931.

Both proposals are listed under the budget head for the ‘Swarajya New Municipal Administrative Building’. The municipal corporation has made a provision of Rs 200 crore under this head. The reported additional expenditure for the project alone is therefore higher than the existing provision.

The headquarters project was named ‘Swarajya’ before construction began. The report said that the project has remained delayed for four years, while the construction has progressed slowly. The proposed expenditure will require approval from the general body before the additional works and revised tender process can proceed.

The upcoming meeting is expected to consider the reasons for the delay, the increase in the project cost and the changes to the contracting arrangement. Questions have also been raised about whether officials supervising the project informed the municipal commissioner about the factors affecting its progress and what action was taken in response.

The immediate next step is the presentation of the two proposals before Panvel Municipal Corporation’s general body on 9 September 2026. The meeting will determine whether the proposed additional construction and interior-work expenditure receives approval.

























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