The Brihanmumbai Municipal Corporation (BMC) has terminated a INR 1,600 crore contract with Roadway Solutions India Infrastructure Ltd (RSIIL) for the concretization of 97 km of roads in Mumbai's island city due to the contractor's failure to initiate work. BMC has introduced a fresh tender, valued at INR 1,363 crore, for the concretization of 235 roads in the island city. Despite RSIIL contesting the termination in court, BMC reiterated its decision and mandated a penalty of INR 64.6 crore, along with the forfeiture of deposits. The project aligns with BMC's goals of enhancing Mumbai's infrastructure.
In a recent development, the Brihanmumbai Municipal Corporation (BMC) has taken decisive actions to address the termination of a contract with Roadway Solutions India Infrastructure Ltd (RSIIL) valued at around INR 1,600 crore. The contract was initially awarded for the concretization of 97 km of roads in Mumbai's island city. Following the termination, BMC has introduced a fresh tender with an estimated value of INR 1,363 crore (excluding GST), focusing on the concretization of 235 roads within the island city.
The termination of RSIIL's contract stemmed from its failure to initiate work even after a lapse of 10 months from the issuance of work orders. RSIIL contested BMC's decision by moving the Bombay High Court, leading to a stay on the termination notice and a directive from the court to appoint a senior officer for a reevaluation of the matter.
After conducting a fresh hearing last week, BMC reiterated its decision to terminate RSIIL's contract through a speaking order. The order mandates RSIIL to pay a total penalty of INR 64.6 crore within 30 days, accompanied by the forfeiture of the contractor's 2% contract deposit and 10% earnest money deposit. BMC explicitly stated in its order that it was evident the contractor lacked the capability or interest in carrying out the designated works.
During court proceedings, the counsel representing the original contractor highlighted that the new tenders had higher costs compared to the previous ones. According to their observations, the earlier contract was valued at approximately INR 12.5 crore per km, while the fresh tender document specifies INR 17.6 crore per km. A BMC official acknowledged a minor difference in the tender cost, attributing it to tentative rates for certain items that were not finalised in the previous tender. The official clarified that despite this slight difference, the items and quantities remain consistent between the tenders.
Regarding the potential blacklisting of the earlier awarded firm, a BMC official noted that the blacklisting process is underway. Even if the firm participates in the new tender, BMC retains discretionary powers to reject their bid, underscoring the municipality's commitment to ensuring high standards of quality and timely project completion.
The concretization project targets key roads in Mumbai, including Marine Lines First Cross Lane, D N Road, V N Road from Hutatma Chowk to Horniman Circle, Cawasji Patel Street, Capt Prakash Pethe Road, Zakaria Masjid Street, Nagdevi Cross Lane, P D'Mello Road (side strip), Samantbhai Nanji Marg, Dadiseth Agyari Lane, Kalbadevi Road, Dr Cawasji Horamasji Street, Bhulabhai Desai Marg, and Babulnath First Cross Lane. This initiative aligns with BMC's broader goals of enhancing the city's infrastructure and ensuring efficient urban living for residents and commuters.
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