Mumbai News: BMC Standing Committee Likely To Refer Back ₹5,396 Crore Gargai Dam Proposal Over Escalated Cost

Mumbai, March 10: The Rs 5,396 crore proposal to construct the Gargai dam, which will be placed before the BMC’s Standing Committee on Wednesday for final approval, is likely to be referred back by the committee to the civic administration over escalated tender cost, civic sources said.

The project saw a cost escalation of Rs 171 crore, with the final contract settled at Rs 3,276 crore, about 5.5% above the 2020 estimate. Including taxes and other charges, the total project cost is expected to reach Rs 5,396 crore.

Project expected to boost Mumbai’s water supply

The long-awaited Gargai dam project, envisioned as Mumbai’s eighth water source, is expected to augment the city’s supply by 440 million litres per day (MLD).

Standing Committee Chairman Prabhakar Shinde said, “The administration does the tendering, and the proposal comes to the committee for final sanction. However, if we find any project whose cost has been escalated, we can refer it back to the administration to check why the contractor cannot be appointed at the project cost estimated by the administration.”

“In our election manifesto itself, we have promised Mumbaikars that BMC will be corruption-free,” Shinde added.

BJP claims stricter scrutiny of civic tenders

Since the BJP came to power in the BMC, a tight watch has been kept on projects with escalated costs, and steps have been taken to ensure there is no favouritism in awarding contracts. Speaking with the FPJ, Mumbai BJP President Ameet Satam said, “‘Understanding’ in the Standing Committee is scrapped.”

“We will not let any tender go above cost unless justified. Unnecessary escalation will not be allowed. Rigging of tenders by putting specific conditions to suit certain contractors and companies will not be allowed. Healthy competition will be encouraged and only merit will be considered,” Satam said.

Allegations over other civic tenders

Alleging corruption in the tendering, Satam recently wrote to BMC Commissioner and Mayor Ritu Tawde that the rigged Rs 490 crore tender for the Byculla zoo expansion be scrapped and a new global tender be floated with healthy competition.

He also said the Rs 384 crore tender for fixing railings on footpaths should be scrapped, as both are being awarded at escalated cost. To streamline tendering and end contractor raj, the party has decided that all purchases of 27 school items for BMC school children should be made through the government’s GEM portal and also suggested buying all items in the gender budget from the GEM portal.

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