Concretisation of Mumbai roads: BMC tender floated on inflated rates to benefit contractors, says Aaditya

Last August, BMC had invited five tenders worth Rs 5,806 crore for concretising 400 km of roads. However, the tenders were scrapped last November by the BMC, citing poor response from bidders. Within three weeks, a fresh tender was floated for the works at a cost of Rs 6,097 crore — a 20 per cent higher rate.

Speaking to mediapersons, Aaditya said, “All contractors would generally bid below 20 per cent than the given cost. However, in this case, the cost of the tender was hiked by scrapping the old tender. This has given the tenders a benefit of 20 per cent.”

“Besides, in the latest tender, the BMC has kept filed the provision of GST, which is 18 per cent, separate from the bidding rates. This has also benefitted contractors… in the previous tenders, the GST rate was included in the main cost.”

Accusing Chief Minister Eknath Shinde of misappropriation of public money, Aaditya said that in Mumbai, road works usually begin by first week of October and are concluded before May 31 the next year, as during monsoon, road works cannot be carried out.

“Despite knowing that the road works need to be started by October, the BMC delayed the tender process. The works are yet to start. At present, there is no mayor and the elected body of representatives has also been dissolved, then why did the BMC administrator issue such a costly tender without discussion?” he asked.

In its statement, the BMC said that the previous tender was floated as per the 2018 market rates. “The price of raw materials has increased by approximately 17 per cent between 2018 and 2023, taking this into account, the cost was revised. Since market rates have changed exponentially over the last five years, the bidders showed unwillingness to work at lower cost, for which the cost was revised as per the present market rates in the latest tender.”

It added that this time, companies having history of carrying out construction works at national highways, are likely to be awarded works. It maintained that sub-letting of the contract will not be allowed and the contractor will have to pay for the manpower and machineries to be used.

“The contract clauses clearly states that audit of all invoices will be carried out regularly… the bidding capacity has been increased to ensure that reputed agencies are qualified for getting the contract since local companies are not being entertained under the joint venture,” the statement said.