Alleging a potential Rs 900-crore loss to the state exchequer, Minister of State for Housing Ravindra Waikar has written to Chief Minister Devendra Fadnavis to the cancel BDD Chawl redevelopment bidding process.
Waikar has sought appointment of Project Management Consultant instead of a mere civil architect, given the size of the proect — BDD Chawl redevelopment, valued at thousands of crores of rupees, which will affect 16,000 residents from existing buildings on 86.98 acres.
He has also pointed out that the technology sought to be used by the state government is at least 30 years old, and therefore, outdated.
“Given that this is an ambitious project, to be implemented in central Mumbai, government must ensure proper compliance,” Waikar has written in his letter.
BDD Chawl is one of the most sought after redevelopment projects in Mumbai, considering its size and prime location. Shiv Sena, who held sway in this constituency for decades, is keen to ensure its voters were taken good care of. It is in this light that Sena has been demanding redevelopment of the buildings that were built in the 1920s.
Waikar has expressed his displeasure that he has been kept out of the discussion process over the project that has the potential to turn political fortunes of the party that gets the credit for execution.
WAIKAR'S OBJECTIONS
- Government is allowing Rs 4,727 per sq ft towards construction cost, while the norms suggest only Rs 3,300 per sq ft.
- Government will have to bear the Goods and Service Tax (GST) which will cost over Rs 443 crore.
- Two per cent Labour Tax on GST will add a Rs 48 crore burden.
- Tender terms and conditions have been designed in such a way that they will benefit only a handful of contractors.
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