Mumbai’s coastal road project to be costlier by Rs 339.32 cr
ROADS & HIGHWAYS

Mumbai’s coastal road project to be costlier by Rs 339.32 cr

The ambitious coastal road project has faced numerous challenges throughout its construction. However, the latest hurdle is particularly significant, with a cost increase of Rs 339.32 crore. This substantial amount is being demanded by the companies involved in the project, citing changes in GST rates since the commencement of work. As a result, the overall cost of the coastal road has now risen from Rs 12,721 crore to Rs 13,060 crore.

In order to maintain the project's progress, the BMC (Brihanmumbai Municipal Corporation) will be required to allocate the aforementioned amount, which includes an additional sum of Rs 6.94 crore. The companies have requested extra funds to relocate a water pipeline that obstructs the project's path.

Initially, the shifting of the pipeline was not included in the original contract and scope of work. However, given the project's advanced stage, this task has become unavoidable. The BMC's hydraulic department has already granted approval for the relocation of the 900mm diameter water line. Interestingly, a comprehensive survey of utility services was conducted prior to commencing the coastal road construction, but this particular issue did not arise at that time.

Under the revised cost proposal, a 12 percent GST rate was applied when the project commenced in 2018. However, the tax rate increased to 18 percent in 2022. Consequently, the three companies involved in the project will be responsible for paying an additional six percent GST.

The construction of the coastal road stretch from Priyadarshini Park to Baroda Palace is being undertaken by L&T company. Similarly, HCC and HDC firms are responsible for building the section from Baroda Palace to the Bandra-Worli Sea Link, while L&T is in charge of constructing the final stretch.

The ambitious coastal road project has faced numerous challenges throughout its construction. However, the latest hurdle is particularly significant, with a cost increase of Rs 339.32 crore. This substantial amount is being demanded by the companies involved in the project, citing changes in GST rates since the commencement of work. As a result, the overall cost of the coastal road has now risen from Rs 12,721 crore to Rs 13,060 crore.In order to maintain the project's progress, the BMC (Brihanmumbai Municipal Corporation) will be required to allocate the aforementioned amount, which includes an additional sum of Rs 6.94 crore. The companies have requested extra funds to relocate a water pipeline that obstructs the project's path.Initially, the shifting of the pipeline was not included in the original contract and scope of work. However, given the project's advanced stage, this task has become unavoidable. The BMC's hydraulic department has already granted approval for the relocation of the 900mm diameter water line. Interestingly, a comprehensive survey of utility services was conducted prior to commencing the coastal road construction, but this particular issue did not arise at that time.Under the revised cost proposal, a 12 percent GST rate was applied when the project commenced in 2018. However, the tax rate increased to 18 percent in 2022. Consequently, the three companies involved in the project will be responsible for paying an additional six percent GST.The construction of the coastal road stretch from Priyadarshini Park to Baroda Palace is being undertaken by L&T company. Similarly, HCC and HDC firms are responsible for building the section from Baroda Palace to the Bandra-Worli Sea Link, while L&T is in charge of constructing the final stretch.

Next Story
Infrastructure Urban

Macrotech acquires Bain Capital's stake in 3 entities for Rs 3 Bn

Realty firm Macrotech Developers has acquired Bain Capital's stake in three industrial and logistics park entities for Rs 3.07 billion as part of a strategy to enhance rental income. Macrotech Developers is one of the leading real estate firms in the country. It sells properties under Lodha brand. In a regulatory filing, the company informed that it has "executed Securities Purchase Agreements (SPAs) with India Opportunities Fund SSA Scheme 1 and DSS Opportunities Investment 1 (Bain Capital) for acquisition of their interest in the digital infrastructure platform entities (Bellissimo Digital I..

Next Story
Infrastructure Urban

Tata Steel reports Rs 7.59 Bn net profit in Jul-Sep

Tata Steel reported a net profit of Rs 7.58 billion for the September 2024 quarter, helped by lower expenses. It had posted a net loss of Rs 65.11 billion in the July-September period of the preceding 2023-24 fiscal, the company said in an exchange filing. In a separate statement, Tata Steel CEO and MD TV Narendran said the global operating environment remained complex, with key regions facing subdued growth. Macroeconomic conditions in China continued to weigh on commodity prices, including steel. In India, steel demand continued to improve, but domestic prices were under pressure due to chea..

Next Story
Infrastructure Urban

SC to verdict on Nov 7 on plea against NCLAT

The Supreme Court is scheduled to pronounce its verdict on a plea of State Bank of India (SBI) and other creditors challenging the National Company Law Appellate Tribunal (NCLAT) decision that upheld the resolution plan of grounded air carrier Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium (JKC). A bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra will pronounce the verdict which was reserved on October 16. The NCLAT had on March 12 upheld the resolution plan of the grounded air carrier and approved the transfer of its ownersh..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000