A 17-month delay in the relocation led to the whopping amount, and this delay is said to be one of the main reasons for the cost escalation and delay in completion of the Mumbai airport’s modernisation project.
Just the relocation of the statue of Chhatrapati Shivaji Maharaj from one place on the airport premises to another one nearby has cost Rs25 crore, as per a consultation paper by the Airport Economic Regulatory Authority.
A 17-month delay in the relocation led to the whopping amount, and this delay is said to be one of the main reasons for the cost escalation and delay in completion of the Mumbai airport’s modernisation project. The total cost of the project now stands at Rs12,380 crore as against the estimated Rs9,802 crore in 2009.
Any cost escalation trickles down to the passengers who are directly or indirectly charged in various ways to fill the required capital gap, said airport officials.
Mumbai airport has sought permission to levy user development fee on passengers. It also wants to enhance aeronautical charges on aircraft, which too will be borne by passengers.
The paper states: “The statue was falling in the footprint of the new common user terminal, and the statue area was scheduled to be handed over by March 31, 2010. But, approval from government for relocating got delayed which affected works on 50,000 sqft (approx) and led to delay in project completion. On August 27, 2011, it got relocated and the area was handed over for construction.”
According to airport officials, the relocation was such a sensitive issue that the state kept delaying the sanction, because political parties protested at the airport against its shifting.
Another reason for rising costs is the failure to remove the slums surrounding the airport and some of the existing structures at the airport, the paper adds.
Sources said the state still isn’t taking serious steps to remove the slums which have encroached upon the airport land, due to vote bank politics.
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