Mumbai: The BMC Standing Committee has unanimously approved the proposed coastal road’s new escalated cost of Rs 12,000 crore. This project has not taken off from the drawing board, and yet its cost has already escalated.
A few committee members raised an objection and, interestingly, BMC Chief Ajoy Mehta blamed fuel prices for the hike in project cost. “The cost has spiralled due to fuel hike and increase in steel prices in international market,’’ explained Mehta. A detailed power point presentation was made by BMC officers before the standing committee for securing its final approval. In August 2017, the basic project cost was Rs 4,816.
In February 2018, the cost increased to Rs 6,852 and in September 2018 it increased to Rs 8,679 (basic cost). After negotiations, the cost was whittled down to Rs 8,429 for securing final approval. Out of the total project cost of Rs 12,000 crore, Rs 4,302 crore will be spent on payment of various types of charges, including Rs 1,700 crore on government taxes.
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