Mumbai: Myriad challenges have come in the way of constructing the ambitious coastal road. The latest challenge outweighs previous roadblocks by Rs 339.32 crore. Underscoring that the GST rates have changed since the works started, the whopping sum is being demanded by the companies involved in the mega project. Now, the overall cost of the coastal road has ballooned to Rs13,060 crore from Rs12,721 crore.
To keep up the pace of work, the BMC will now have to shell out the aforementioned amount which also includes a sum of Rs6.94 crore. The companies have asked for additional money to shift a water pipeline coming in the project's way.
Shifting of pipeline not part of promised work initially
As per the initial contract, shifting of the pipeline was not part of the promised work, but the task is inevitable now as the project has reached its fag end. The BMC's hydraulic department has already given its nod to shift the 900mm diameter water line. Interestingly, a deep survey of utility services was conducted before commencing the coastal road works, however, then this issue hadn't cropped up.
As per the proposal of the increased cost, 12 per cent GST was levied when the project had begun in 2018 but the taxation slab moved to 18 per cent in 2022. Therefore, the three companies involved in the work will have to pay extra six per cent GST.
L&T company is constructing the coastal road stretch from the Priyadarshini Park to the Baroda Palace. Likewise, HCC and HDC firms are building the path from the Baroda Palace to the Bandra-Worli Sea Link and again L&T is constructing the last stretch.
The BMC has passed the proposal for the increased costs.