Mumbai: Concretisation Hits Roadblock As Bidder Quotes Higher Price Than BMC's Estimation

The construction of cement concrete (CC) roads in south Mumbai has faced another setback after the lowest bidder quoted a price 9% higher than the BMC’s estimated rate. The civic body is currently in negotiations with the company to reduce the costs. Former corporators from both the BJP and Congress have raised objections regarding awarding contracts at higher rates.

After terminating the contract awarded to Roadways Solution Infra India Limited (RSIIL) for roads in the island city, the BMC invited a fresh tender. The civic body could finally get two bidders after several attempts. However, the bidder quoted 9% more, which is Rs150 crore above the BMC’s estimate.

Former BJP corporator from Colaba Makarand Narwekar in a recent letter to BMC Commissioner Bhushan Gagrani said, “NCC Ltd emerged as the lowest bidder, with a bid of 9% above the estimate for a contract worth Rs1,600 crore. Any above-estimated contract will be a loss to the taxpayer.”

Ravi Raja, former opposition leader of BMC and senior Congress leader, said, “There is inordinate delay in concretisation of roads. The inauguration of this project happened 18 months ago and there has been no progress. And now when a tender is issued, it is 9% above the estimate. In short, this is a loot of public money. This has to stop right away. People are suffering due to bad roads and instead of caring for them, BMC is taking care of contractors.”

“The contract has not been finalised yet. We are currently negotiating with the lowest bidder,” Additional Municipal Commissioner (Projects) Abhijit Bangar said.

The BMC initiated a project to concretise all roads in the city, with 397 kilometres slated for Phase 1. Contracts were awarded to five companies, including RSIIL, for roads in the island city. However, RSIIL’s contract was terminated after nearly eight months of inactivity following the issuance of work orders in October 2023. The company challenged the BMC’s decision in court, prompting a fresh hearing mandated by the Bombay High Court. Despite this, the contract was terminated for a second time in January, and RSIIL was fined Rs64 crore. The matter is currently under arbitration.