Mumbai: The delay in the BMC’s ambitious project of construction and upgradation of seven sewage treatment plants (STP) has resulted in a massive cost escalation.
Moreover, a 6% rise in Goods and Services Tax (GST) has further increased the cost by Rs828 crore. The initial contract for seven STPs was awarded at around Rs26,000 crore in May 2022.
How did this delay occur?
The planned STPs are at Worli, Bandra, Dharavi, Versova, Malad, Ghatkopar and Bhandup. Together they can treat 2,464 million litres of sewage daily under the Mumbai Sewage Disposal Project-II (MSDP). It took 14 years for the BMC to get environmental clearances from the Ministry of Environment, Forest and Climate Change and the Central Pollution Control Board for the new discharge norms.
Meanwhile, during the delayed tendering process, GST rose from 12% to 18% in July 2022. The BMC took a few months to seek legal opinion before approving the cost escalation proposal. The final nod from BMC administrator Iqbal Singh Chahal was procured last month. While the cost of Dharavi, Versova and Malad STPs has risen by Rs425 crore, the cost of Worli, Ghatkopar and Bandra STPs has gone up by Rs403 crore. The new cost for Bhandup STP is awaited.
At present, the Colaba STP treats wastewater to the required standards before allowing it to be released into the nearest water body. Amid the Opposition’s allegations of cartelisation, the BMC scrapped the tender of seven STPs in Feb 2022 on receiving a high bidding price (30-70% above the estimates). The Supreme Court directed the civic body to award tenders to eligible lowest bidders before May 31.
Year Estimated cost
2018 Rs10,000 cr
2020 Rs18,500 cr
2021 Rs21,000 cr
2022 Rs25,963 cr
Worli 500 MLD
Bandra 360 MLD
Malad 454 MLD
Ghatkopar 337 MLD
Dharavi 418 MLD
Bhandup 215 MLD
Versova 180 MLD
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