The Brihanmumbai Municipal Corporation (BMC) faces challenges in its ambitious road concreting project, with penalties exceeding Rs 82 crore imposed on contractors due to delays. Roadway Solutions India Infra bears the largest share of Rs 54.1 crore in penalties for roadwork in the island city. The project, covering 890 stretches on 110 roads, totalling 397 kilometres, lacks clear completion percentages, raising concerns. BMC plans to deduct fines from ongoing invoices, with contractors holding a 1% security deposit to offset penalties. Following a termination notice to Roadway Solutions, the BMC may consider an ex-parte termination order. The project's future is uncertain, sparking political debates and concerns.
The Brihanmumbai Municipal Corporation (BMC) has found itself navigating a seemingly never-ending obstacle course in its ambitious road concreting project. Months after issuing a termination notice to one of the five companies awarded the Rs 6,080-crore cement-concrete (CC) road contracts, it has come to light that the collective penalty imposed on all contractors due to delays has now surpassed an astounding Rs 82 crore. The lion's share of this penalty, amounting to Rs 54.1 crore, has been slapped on Roadway Solutions India Infra, the company responsible for roadworks in the island city.
The scope of the CC project was extensive, covering 890 stretches on 110 roads, amounting to a total of 397 kilometres. Despite BMC officials asserting that work is progressing on 96 of these roads, they have been unable to provide clear completion percentages, leaving room for concerns and skepticism among opposition parties.
The central question now revolves around how the BMC intends to levy these substantial penalties on the contractors. According to an official statement, the BMC plans to deduct the fines from the contractors' ongoing invoices. This means that the contractors will only receive payment after the penalty amounts have been subtracted. Additionally, the contractors have furnished a 1% security deposit, totalling approximately Rs 60 crore, which can be adjusted against the penalties.
Following the issuance of the termination notice to Roadway Solutions, the BMC had initially scheduled a hearing. However, the firm requested additional time and eventually skipped the hearing on the designated day. BMC officials have expressed dissatisfaction with the reasons provided by the company for the project delays, describing them as lacking clear justification. Consequently, the BMC is contemplating the possibility of proceeding with an ex-parte termination order if deemed necessary.
In conclusion, the BMC's road concreting project, initially hailed as a transformative endeavour, has encountered a series of roadblocks and controversies. The accumulation of substantial penalties, the termination notice, and the overall management of the project have led to growing concerns and political debates. As the BMC and the contractors grapple with the complexities of the situation, the future of the project remains uncertain, and the hopes of a pothole-free Mumbai hang in the balance.
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