MTHL: `2,192 cr cost overrun amid delay
Contractors miss two extensions, and the project is still not 100% complete, according to RTI activist Anil Galgali; MMRDA reveals no penalties were imposed on contractors for missing deadlines
The Mumbai Trans Harbour Link (MTHL), the 22-km-long India's longest road bridge, has had a cost overrun of a whopping Rs2192 crore. The contractors have missed two extensions and still, the work is not 100 % complete, according to Anil Galgali, a noted Right To Information (RTI) activist.
The Mumbai Metropolitan Regional Development Authority (MMRDA) informed Galgali that no penalty had been imposed on the contractors for meeting even the extended deadlines. The mega project is likely to be inaugurated by Prime Minister Narendra Modi on January 12, but there is no confirmation of the date from the PMO.
In a document made available to Anil Galgali by the MMRDA administration, the overall physical progress of packages 1, 2 and 3 of the project is 98.92%. In comparison, the physical progress of package four is 82%. The average
Overall physical progress at 98.92%, but package four lags at 82%. The average project progress is 98.41%
Project expected to be completed by December 2023, with increased costs attributed to delays
physical progress of the total project is 98.41%. The project is expected to be completed by December end 2023. According to Galgali, the cost has increased due to non-completion of the work on time. “This is the fault of the contractors. Instead of paying the increased amount, it would be more appropriate to impose a fine instead,” he added. He said the Rs2,192 crore increase in expenditure was very high. The said project is being implemented with the loan assistance of the Japan International Cooperation Agency (JICA). The contract price of the consortium was Rs7,637.30 crore. This has now increased by Rs9,99.67 crore. The original expenditure was Rs14,712.70 crore, which has increased by Rs2,192.73 crore. Contractors missed two extensions. The work was expected to be completed on September 22, 2022. The MMRDA administration gave the first extension upto September 22, 2023. After this, December 15, 2023 was the second extension. However, the work is still not done, Galgali noted.
Although expected to be inaugurated by Narendra Modi on January 12, there is no official confirmation from the PMO
Consortium’s contract price rises from `7,637.30 crore to `9,99.67 crore, causing project expenditure to surge by `2,192.73 crore
The project is implemented with the loan assistance of Japan International Cooperation Agency