Tuesday, August 9, 2011

Contractors hike road costs by up to 627% after bagging orders

MUMBAI: The BMC, in three years from 2007-08 to 2009-10 , allowed contractors who recently bagged a major roads contract to increase costs in 17 major projects by an average of 51.5%. The projects, executed and tendered separately , were originally pegged at a total of Rs 292 crore, but the escalations were to the tune of Rs 150.43 crore, boosting the final project costs to Rs 442.43 crore.

An 18project, for a road from Worli Sea Face to Haji Ali, was initially worth Rs 11 crore, but costs escalated by a whopping 627.3%. The Rs 80-crore escalation sent the final project cost to Rs 91 crore.

All the companies that executed these 18 projects are among the nine that recently bagged a major Rs 550-crore tender to build and upgrade 50 km of new roads in the city. TOI has revealed in a series of stories the horrible condition of roads and how the potholes and bad stretches have damaged vehicles and caused injuries. No. of projects: 17 Period: 2007-08 to 2009-10 Original cost: Rs 292cr Overrun: Rs 150cr Avg cost escalation : 51.5% 18th project cost: Rs 11cr Escalation: Rs 80cr, or 627%. Average cost overrun of all 18 projects: 76%. And what do you get for it? 

No comments:

Post a Comment

About Me

My photo
Thrissur, Kerala, India
Those who have power to change things don't bother to;and those who bother don't have the power to do so .................but I think It is a very thin line that divides the two and I am walking on that.Well is pure human nature to think that "I am the best and my ideas unquestionable"...it is human EGO and sometimes it is very important for survival of the fittest and too much of it may attract trouble.Well here you decide where do I stand.I say what I feel.

Followers

Blog Archive