Mumbai: BMC Negotiates with Bidder After CC Road Project Hits 9% Cost Hike

The construction of cement concrete (CC) roads in South Mumbai has faced another hurdle as the lowest bidder quoted a price 9% above the BMC's estimated rate. The civic body is currently negotiating with the company to bring down the costs.

Last year, the BMC terminated the contract with Roadways Solution Infra India Limited (RSIIL) due to delays in executing works in the island city. The BMC subsequently invited fresh tenders and, after multiple attempts, received two bids.

However, the lowest bid was still 9% above the estimate, amounting to Rs 150 crore more than the BMC's projected cost. According to a senior civic official, NCC Ltd emerged as the lowest bidder, with a bid of 9% above the estimate for a contract worth Rs 1,600 crore. After facing criticism for delays in road cement concretizing, the BMC is now under fire for rising costs.

The BMC initiated a project to concretize roads in the city, with 397 km slated for Phase 1. Contracts were awarded to five firms. However, RSIIL's contract was terminated after eight months of inactivity following the issuance of work orders in October 2023. The company challenged the decision in court, prompting a fresh hearing mandated by the Bombay High Court. Despite this, the contract was terminated for a second time in January, and RSIIL was fined Rs 64 crore. The matter is currently under arbitration.