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BMC awards INR 1,300 crore tender to NCC Ltd for concretization of 215 roads

Synopsis

The Brihanmumbai Municipal Corporation (BMC) has awarded a INR 1,300 crore tender to NCC Ltd for the concretization of 215 roads, marking a shift from traditional asphalt to more durable concrete surfaces. This project follows a terminated INR 1,687 crore contract with Roadway Solutions India Infra Ltd (RSIIL) due to slow progress and a subsequent INR 64.6 crore penalty. NCC Ltd's bid represents a 10% cost reduction. However, the monsoon season and upcoming state assembly elections will likely delay project initiation. The BMC will use this period to finalize road sequencing, relocate utilities, and obtain traffic clearances.

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In January 2023, the BMC awarded a INR 1,687 crore contract to Roadway Solutions India Infra Ltd (RSIIL) for road works in the island city, encompassing 212 roads across eight municipal wards. However, the project faced delays due to slow progress by the contractor. By November 2023, the BMC was forced to terminate the contract and levied a penalty of INR 64.6 crore on RSIIL.

Following a retendering process that began at least six months after the termination of the earlier contract, NCC Ltd emerged as the lowest bidder with a revised project cost of INR 1,300 crore. This represents a 10% reduction compared to the previous contract, signifying a positive development for the project. Additionally, NCC Ltd brings experience in road construction projects, having already undertaken similar work in Mumbai's western suburbs.

The project's immediate progress is hampered by two unavoidable factors. The first is the upcoming monsoon season in Mumbai, which typically lasts from June to September. Construction activities are difficult and often impractical during heavy rains. The second factor is the upcoming state assembly elections, which will trigger a model code of conduct, potentially delaying the official allocation of work to the new contractor.

While construction cannot begin immediately, the BMC can use this waiting period productively. This includes finalizing the sequence in which different roads will be addressed, a crucial aspect for minimizing traffic disruptions. Additionally, the BMC can work with utility companies to relocate any underground infrastructure (like water pipes, electrical cables) that might impede construction. Obtaining necessary traffic clearances is another key step that can be completed during this waiting period.

The inconvenience caused by the delays is understandable. However, it's important to consider the long-term benefits of this project. Concrete roads are generally considered more durable than asphalt, requiring less frequent maintenance and repairs. This translates to potential cost savings for the BMC in the long run and less disruption for residents. Estimates suggest concrete roads can last two to three times longer than asphalt roads, depending on traffic volume and weather conditions.

This project highlights the potential benefits of public-private partnerships (PPPs) in infrastructure development. The BMC, a public body, partners with a private company, NCC Ltd, to leverage its expertise and resources. Successful completion of this project can serve as a model for future infrastructure initiatives in Mumbai and other Indian cities.

While the delays caused by the monsoon and elections are frustrating, it's important to acknowledge the ongoing efforts by the BMC. Transparency in the retendering process and a focus on cost-effectiveness are positive signs. Collaboration between the BMC, NCC Ltd, and utility companies will be crucial for ensuring the project's timely completion. Once the initial hurdles are overcome, residents of Mumbai's island city can look forward to a smoother and more durable road network that can potentially last for decades to come.

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