The Ahmedabad Municipal Corporation (AMC) has incurred a INR 45.94 crore cost overrun after blacklisting two firms for failing to complete housing projects in Motera and Thaltej. The Motera-Koteshwar project, originally tendered at INR 67.53 crore, now requires INR 104.36 crore to complete, while the Thaltej project's cost rose from INR 11.75 crore to INR 20.86 crore. New contractors have been appointed, but recovering the additional expenditure from the blacklisted firms remains uncertain. The delays highlight AMC's challenges in contractor accountability and project management, emphasizing the need for stricter monitoring and efficient governance to ensure timely, cost-effective housing development.
The Ahmedabad Municipal Corporation (AMC) has faced a cost escalation of INR 45.94 crore due to the blacklisting of two firms that failed to complete housing projects. The Housing Improvement and Urban Poor Housing Scheme Committee recently approved two proposals to hire a new contractor to finish the pending work in Motera and Thaltej.
The projects, initiated five years ago, had been allocated to separate firms. However, their failure to complete the work led to their blacklisting and the subsequent approval of a fresh proposal to appoint another contractor at a higher cost. The committee chairperson mentioned that efforts would be made to recover the additional expenditure from the blacklisted firms, although internal sources expressed doubts about the feasibility of this recovery.
In 2019-20, the AMC had sanctioned a tender worth INR 67.53 crore for the construction of 1,520 houses with associated infrastructure in the Motera-Koteshwar area. The project was assigned to Jyoti Infratech. However, after repeated delays and non-completion of the work, the firm was blacklisted for five years in June 2023. New tenders, amounting to INR 104.36 crore, have now been approved to complete the project.
Similarly, in Thaltej, a tender worth INR 11.75 crore had been approved for the construction of 1,190 houses. The project, assigned to Sanghani Infrastructure India Pvt Ltd, also remained incomplete. Consequently, a new proposal was sanctioned, with the total cost rising to INR 20.86 crore.
In addition to these projects, the committee has granted extensions for housing initiatives in Makarba, Sardarnagar, and Chandkheda, where contractors have missed their original completion deadlines.
The delays and cost overruns have highlighted significant challenges in project management and contractor accountability within the AMC. While the committee's decision to appoint new contractors ensures that the housing projects can proceed, the additional financial burden on the civic body underscores the need for stricter monitoring and enforcement mechanisms.
The blacklisting of firms and the approval of higher-cost tenders also raise concerns about the effective utilisation of public funds. For residents awaiting these housing projects, delays and budget escalations have added to their uncertainties.
Moving forward, AMC must prioritise improving its contractor selection and monitoring processes to prevent similar situations. Ensuring timely completion of projects and maintaining cost efficiency will be crucial to restoring public trust and achieving the objectives of the housing schemes. Addressing these challenges comprehensively will help pave the way for more accountable and effective governance in urban development.
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