Ahmedabad Municipal Corporation (AMC) will incur an additional ?459.4 million (?45.94 crore) to engage new contractors for completing two delayed housing projects in Motera and Thaltej, following the blacklisting of the original firms.

The Housing Improvement and Urban Poor Housing Scheme Committee sanctioned the extra expenditure on Friday, authorizing fresh tenders to expedite the projects. While the housing committee chairman assured that the costs would be recovered from the blacklisted firms, insiders doubt the feasibility of reclaiming the funds.

In Motera-Koteshwar, the AMC had sanctioned a ?675.3 million (?67.53 crore) tender in 2019-20 for 1,520 housing units with infrastructure. However, Jyoti Infratech failed to deliver, leading to its blacklisting in June 2023 for five years. The revised tenders for the project now total ?1.0436 billion (?104.36 crore).

Similarly, a project in Thaltej, originally tendered at ?117.5 million (?11.75 crore) for 1,190 houses, was abandoned by Sanghani Infrastructure India Pvt Ltd. The AMC has approved a new proposal with a tender value of ?208.6 million (?20.86 crore).

Additionally, the housing committee extended project deadlines for Makarba, Sardarnagar, and Chandkheda, citing delays by contractors in meeting original timelines.

The escalating costs underscore the challenges AMC faces in managing urban housing initiatives amidst lapses in contractor accountability.