Mumbai Metropolitan Region Development Authority (MMRDA) has estimated a 7.5% increase in cost of Lines 2A and 7, which became fully operational between Gundavli-Dahisar-Andheri on January 20.
While Metro 2A is 17.5km long and follows the alignment on Link Road, Metro 7 that runs between Dahisar-Western Express Highway metro station has a length of 18.6km.
The cumulative cost on both corridors was Rs12,618 crore, including Rs6,410 crore on Line 2A and Rs6,208 crore on Line 7. Hence, the escalation is expected to be around Rs900 crore, but MMRDA sources said the amount may vary as only the civil component will be calculated for escalation purposes.
MMRDA had hoped to open these lines by October 2019 but later the deadline was revised to December 2020 but the outbreak of coronavirus led to the lockdown and fleeing of labourers to their native places and work came to a standstill.
Metropolitan commissioner S V R Srinivas said, “We expect a cost escalation of 7% primarily on account of civil work which got delayed due to many reasons.”
In August 2021, MMRDA had issued a show-cause notices to four contractors, including J Kumar Infraprojects Ltd, NCC Ltd, Godrej and Capascite Infraprojects Ltd for delay in completing the work on Metro stations.
A cumulative penalty of Rs2 crore was to be recovered but the notices have had an impact as contractors have mobilised men and machinery to adhere to deadlines. Hence, the penalty was not imposed.
MMRDA already imposed a penalty of Rs36 lakh on contractors for electrical work on Line 2A.
Chief minister Eknath Shinde-led cabinet had in August 2022 approved a cost escalation of Rs10,000 crore for the underground Metro 3 corridor
The reasons for cost escalation include soil strata being different in Delhi and Mumbai.
