Mumbai: The ambitious Mumbai Coastal Road project has missed its deadline and will now be completed by the end of 2023. RTI activist Anil Galgali has been informed by the BMC that a fine of Rs 31 crore has been imposed on the project contractors, who have seen a cost overrun of Rs 226 crores. Despite this, the contractors have already been paid 65 percent of the amount due to them.
Galgali had requested information about the project from the BMC. The BMC informed him that the work on the project is divided into three parts.
Part 1 cost escalation
Under Part 1, the work from Priyadarshini Park to Baroda Palace has been awarded to M/s Larsen & Toubro, and the original cost has increased by Rs 99.79 crores. The initial cost was expected to be Rs 3,505 crores. As of June 20, 2023, approximately Rs 2,286 crore has been paid to the contractor. A fine of Rs 8.57 crores has been levied so far for this work. The original completion date was October 12, 2022, but the deadline has been extended, and the work will now be completed on September 10, 2023.
Part 2 cost escalation
Under Part 2, the work from Baroda Palace to the southern end of the Bandra Worli Sea Link has been awarded to M/s HCC HDC, with an increase in the original cost of Rs 62.25 crores. The initial cost was expected to be Rs 2,126 crores. As of June 20, 2023, approximately Rs 1193 crore has been paid to the contractor. A fine of Rs 15.37 crores has been levied for this work. The original completion date for this part was October 15, 2022. However, the deadline has been extended, and the work will now be completed on October 7, 2023.
Part 3 cost escalation
Under Part 3, the work from Princes Street flyover to Priyadarshini Park has been awarded to M/s Larsen & Toubro, and the original cost has increased by Rs 63.83 crores. The initial cost was expected to be Rs 2,798 crores. As of June 20, 2023, approximately Rs 2,160 crore has been paid to the contractor. A fine of Rs 7.25 crores has been levied for this work. The original completion date was October 12, 2022, but the deadline has been extended, and the work will now be completed on November 26, 2023.
According to Galgali, the penalty levied is very low considering the increase in cost. Contractors strive to secure such ambitious projects, but once they obtain the job, they fail to complete the project on time. As a result, the cost escalates, and the additional expenditure is covered by the funds collected from taxpayers, he noted.
