Mehta told the members that the main reasons for cost escalation are fuel prices, rupee depreciation, amount kept for biodiversity as per environment ministry guidelines and increase in steel cost.
After an hour-long presentation and discussions, the BMC Standing Committee cleared the ambitious coastal road project on Tuesday. Earlier, the proposal was held back by the committee due to cost escalation. The first phase of the road (9.98-kilometre) will be completed in 48 months after the award of works. There will be 24 months for defects liability period. Ajoy Mehta, BMC municipal commissioner said, "There will be no digging in coastal road. This will increase life of it, which is why only 24 months DLP provision."
Mehta said that the total cost of the first phase is around Rs 12,000 crore. However, the actual cost is around Rs 5,800 crore. "The total cost consists of various heads, which will not be utilised. And, this amount also includes Rs 1700 as taxes," said Mehta. He added that the civic body is providing the casting yard for which it will get back Rs 250 crore.
Mehta told the members that the main reasons for cost escalation are fuel prices, rupee depreciation, amount kept for biodiversity as per environment ministry guidelines and increase in steel cost.
The committee members suggested cycling and jogging track, public utilities and shelters at points on the reclaimed land alongside the coastal road. However, Ravi Raja, Congress corporator and leader of Opposition in BMC said that despite all clarifications, the cost escalation is beyond understanding for him. "While there is 5 years DLP for normal roads in the city, there is only 24 months for premier project like the coastal road," Raja said.
A traffic analyst from the city said that the project is going to be a white elephant. "Instead of spending so much money on the project, the effort should be on strengthening public transport," said the analyst. He added that by the time it will be completed, the Metro will also be functional.
Mehta said there is provision in the tender to penalise contractors and the consultant if they missed deadlines.
In addition, the civic chief also mentioned that the project will create 90 hectare of open space worth Rs 26,000 crores wherein no commercial or residential construction will be allowed but public amenities will be developed.
CLOSER TO REALITY
The first phase of the road (9.98-kilometre) will be completed in 48 months after the award of works. There will be 24 months for defects liability period. There will be 24 months for defects liability period. the total cost of the first phase is around Rs 12,000 crore
Ajoy Mehta, BMC municipal commissioner said that the project will create 90 hectare of open space worth Rs 26, 000 crores wherein no commercial or residential construction will be allowed but public amenities will be developed.
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