Mumbai, Oct 4 The Maharashtra Cabinet chaired by Chief Minister Eknath Shinde on Friday approved an escalation of the cost of the order of Rs 20,375.21 crore in the construction of Pune Ring Road, taking the total project cost to Rs 42,711.03 crore, officials said.
The increase in the cost is recorded in merely three years, even as the construction of the project is yet to begin.
As per the Cabinet note, Pune Ring Road (East) runs from Urse (Mumbai–Pune Expressway) to Solu (Alandi-Markal road) and from Solu to Sortapwadi (Pune-Solapur road).
The cost of this 68.19-km long road was estimated at Rs 10,159.82 crore in September 2021.
On Friday, the total length of the project was revised to 72.335 km and the total cost was increased to Rs 19,932.98 crore.
The Pune Ring Road (West) runs from Urse (Mumbai–Pune Expressway) to Varve Budruk (Satara Road).
In September 2021, the cost of this phase of the project was estimated at Rs 12,176 crore.
On Friday, the cost was increased to Rs 22,778.05 crore.
The Maharashtra State Road Development Corporation (MSRDC) Vice-Chairman and Managing Director (VC and MD), Anil Gaikwad, in a note presented to the State Cabinet has attributed the escalation in project cost to various reasons such as inclusion of few additional state-of-the-art technology, changes in context sensitive design and modification in specifications.
"The project estimates were based on 2017-18 rates. The tenders were filed with ongoing rates and increase in prices of material. The said tender is based on engineering, procurement and construction basis and there is a possibility of changes in the base level and length. Issues such as cost of the land for minor minerals and making a temporary approach road can be raised and the contractor is responsible for the same," said the MSRDC VC and MD's note.
It also mentioned that a third party -- Veermata Jijabai Technological Institute (VJTI) -- was appointed to update the project cost and a Chief Engineer committee under Gaikwad was formed for it.
"Based on the report received from the VJTI in July 2024, the committee has certified the cost," it said.
Earlier, in the Cabinet meeting held on Monday, the State Cabinet had cleared the revised cost of Rs 12,200 crore for the Thane Integral Metro Rail project and also the Rs 18,838.40 crore 11.85-km Thane-Borivali double tunnel subway project despite the finance department citing constraints on raising debt in the wake of spiralling fiscal deficit.
Further, the Cabinet had given its consent for an interest-free secondary loan assistance to the Mumbai Metropolitan Region Development Authority to expedite the Rs 9,158 crore three plus three lane Orange Gate to Marine Drive subway with two tunnels in south Mumbai.
Of the total cost of Rs 9,158 crore, the Cabinet cleared the state government's interest-free secondary loan of Rs 1,354.66 crore comprising state government's tax worth Rs 614 crore, 50 per cent of the Central taxes of Rs 307.22 crore and land acquisition cost of Rs 433 crore.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor