Nothing wrong in Rs 6,080cr CC road contracts, so no probe: CM | Mumbai News – Times of India

MUMBAI: Though complaints have been received from elected representatives, no inquiry has been initiated against BMC officials since there were no irregularities in the Rs 6,080-crore cement concrete (CC) road tendering process and awarding of contracts, chief minister Eknath Shinde said, in a written reply to Shiv Sena (UBT) MLC Ambadas Danve‘s question in the legislative council.
In his reply given earlier this month, Shinde further added that the BMC has not released the Rs 600 crore mobilisation advance to the five companies that have bagged the contracts to construct 397km of cement concrete roads in the city and has even penalised them for delays and tender condition violations.
Rs 600cr advance to contractors for CC roads withheld
CM Eknath Shinde has ruled out a probe into BMC officials’ role in the cement concrete (CC) road contracts row. Following complaints from former BJP corporator Makrand Narwekar, the BMC had fined three of the five companies Rs 16 crore, including nearly Rs 10 crore from the company which had bagged the contract for CC roads in south Mumbai. Narwekar said: “I have asked for a statement of the fine imposed, but the BMC roads department has not replied. I’ll now have to approach Lokayukta against the road department officials who have colluded with the contractors.”
Demanding that BMC terminate the contract for CC roads in south Mumbai, he said: “Not a single road or stretch has been completed…BMC must now terminate the contract after issuing notices. Fifty stretches were to be completed before monsoon, but between January and June, only one stretch was ready. At this pace, it will take five years to complete the CC roads.” Civic officials said the CC road works, which were halted due to the monsoon, will resume in October. After taking over as CM in August 2022, Shinde had said that all Mumbai roads should be concreted in two years.
The BMC floated tenders, but got poor response. In November 2022, tenders were floated afresh and five companies quoted 6-8% above the BMC estimates. Under fire for the cost escalation, BMC told the winning contractors to reduce their rates by 6-8%, but they refused. BMC gave orders to carry out the work ‘on par’ to these firms unilaterally, and cut costs by around Rs 400 crore. According to the tender conditions, the firms were to receive a 10% mobilisation advance, in two instalments of Rs 300 crore each. “The first 50% of the advance was to be released after they set up all field offices and started groundwork. The remaining was to be released after they submitted detailed reports of having effectively spent the initial sum on raw materials like steel and cement,” said a civic official. “Since notices were issued and fines imposed, it was not possible to release the Rs 600 crore mobilisation advance.”