Updated on: Tuesday, September 21, 2021, 12:41 AM IST

Madhya Pradesh: PWD in a ‘Catch 22’ situation as it stares at Rs 30-crore loss

Elevated corridor from LIG Square to Navlakha
File Photo |

File Photo |


Indore (Madhya Pradesh): The PWD is in a ‘Catch 22 situation’ over constructing an elevated corridor from LIG Square to Navlakha, for which a tender was approved 6 months ago, as a demand by MP Shankar Lalwani to add a BRTS corridor in its project has halted it. This demand, if incorporated, will escalate the cost of the main project by Rs 116 crore.

And, if delay hits the project in any way—by cancellation of the tender or by cost escalation—PWD will have to bear a heavy financial loss. Any delay in the project or cancellation of the tender could cost PWD a whopping Rs 30 crore according to the contract signed between it and the construction company.

The elevated corridor project proposed cost was Rs 350 crore and the tender was issued to Raj Kamal and Association (Ahmedabad) at a cost of Rs 306 crore. Its funding was done under the Central Road Funds Act by the central government.

A demand was put forward by Lalwani and other city politicians for adding a BRTS corridor to the elevated corridor for which an additional Rs 116 crore are required.

Lalwani said that he had sent the letter to the state government demanding funds of Rs 116 crore for construction of the BRTS corridor at the flyover. However, the response from the state government is still awaited.

“I’m trying my best to gather the funds for the project from the state government,” Lalwani added.

Rs 30 crore clause

According to the officials, as per the contract signed between the PWD that if the tender gets cancelled due to the negligence or any issues from any of the company, the respective company will have to pay compensation of Rs 30 crore to another company for causing the inconvenience and other issues.

MP Lalwani said that yes, such clause is there but we will try that the projects get started soon and no such issues will occur.


Stretch—LIG Square till Navlakha Square

Distance—4.5 Km

Number of Signals/stops—8

Average stops—3.45 minutes

Project cost—Rs 306 crore

Project duration—24 months

Project start date—This year (estimated)

Project end date—2023-2024 (estimated)

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Published on: Tuesday, September 21, 2021, 12:41 AM IST