Cost of BMC's mega pipe project doubles in a year

MUMBAI: The astronomical increase in the cost of a key underground water tunnel to the city in the span of a year has raised questions about the transparency and working of the BMC.

In 2008, the cost of the 15.1-km-long tunnel from Gundovli near Bhiwandi to Bhandup, as part of the Middle Vaitarna Project to bring 455 million litres a day of water to the city, was estimated at Rs 1,122 crore. In October 2009, the civic standing committee comprising corporators of all parties, approved the project at almost double the cost—Rs 2,019 crore.

Civic sources have dubbed it "brazen profligacy" given that the BMC is facing a huge financial crunch. What has also raised eyebrows is the fact that there were only two bidders for such a mega project.

In 2008, the BMC's consultant, Mott MacDonald Consortium, submitted a detailed report on a water supply project for Mumbai and estimated the cost of constructing a new 15.1-km tunnel between Gundovli (near Bhiwandi) and Bhandup at Rs 1,122 crore.

A year later, in October 2009, the civic standing committee comprising corporators from both ruling and opposition parties approved the project at almost double the cost (Rs 2,019 crore).