Monday, February 29, 2016

MMRDA, L&T play blame game over Monorail cost hike

DNA: Mumbai: Monday, February 29, 2016.
As far as the project cost is concerned, the Mumbai Monorail seems to be heading in the same direction as the Metro. The Mumbai Metropolitan Region Development Authority (MMRDA) and construction firm Larsen & Toubro Scomi Engineering (LTSE) have meanwhile agreed to disagree over the cost increase.
MMRDA is of the opinion that LTSE is responsible, on most counts, for the price rise, while LTSE officials blame the development authority for not providing the Right of Way in the scheduled time limit. Around two months ago, a three-member committee of former bureaucrats was formed to look into each of the heads of expenditures and ascertain who was responsible fThe first meeting of the committee, comprising Anand Kulkarni, Jayant Nashikkar and SD Limaye, was held a fortnight ago. The retired bureaucrats will analyse and fix responsibility for delay of each of the construction components and elements behind the Mumbai Monorail between Chembur-Wadala-Jacob Circle.
In 2008, before the bids were floated, MMRDA had estimated the 19.54-km project to cost Rs1,440 crore. It was very low according to the private players. So during the bidding stage, it was revised to Rs2,460 crore an increase of Rs1,020 crore. As per MMRDA's reply to a Right to Information (RTI) application, however, the price has already shot up by Rs95 crore and is likely to go up even further.
dna had published a break-up of the cost escalation on Saturday.
Meanwhile, according to the LTSE authorities, the increase in pricing is due to revision of plans and alterations to design at various places. The other reason mentioned by LTSE is the delay in land acquisition. Earlier, the Reliance Infrastructure-led Mumbai Metro One Private Limited and MMRDA have disagreed with each other over cost escalation of Versova-Andheri-Ghatkopar Metro line. The reasons behind the disagreement were similar as well.