Mumbai: Versova-Madh Bridge Cost Doubles to ₹4,000 Crore, Ex-Opposition Leader Alleges Corruption

Mumbai: A sudden and dramatic escalation in the cost of a new 2km bridge connecting Madh and Versova has sent shockwaves through the city's infrastructure circles. The initial estimated cost of the project was a modest Rs 2,000 crore, but the final tender has ballooned to nearly Rs 4,000 crore, leaving many to wonder what's driving this extraordinary increase. Ravi Raja, a former leader of opposition in the BMC, has pointed out drastic change in cost of tender.

According to civic sources, the BMC issued a tender for the design and construction of the bridge just six months ago. However, the BMC has denied any wrongdoing, stating that there is no truth to the allegations of cost escalation.

Ravi Raja condemning the cost escalation of the Versova-Madh bridge project said, "In 2023, the BMC launched a tender for a massive infrastructure project, with an estimated cost of Rs 2,038 crore," he recalled. "However, for some inexplicable reason, the tender was cancelled. Fast forward to 2024, and the BMC issued a new tender with a staggering 95% increase in cost, which translated to an additional Rs 1,900 crore within a year. This is a clear case of match fixing, where particular contractors are being favored at the expense of taxpayers' money."

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He further added, “There is a complete lack of transparency in these transactions, and it is imperative that we bring this corruption to an end. If this trend is not reversed, I will be compelled to take legal action against the tender process. This is a gross injustice perpetrated against the citizens of Mumbai. The 95% increase in the cost of the project connecting Versova Bay to Madh within a year is staggering. In January 2023, the estimated cost was Rs 2,038 crore, but now it has ballooned to Rs 3,990 crore, a whopping increase of Rs 1,900 crore. This excessive increase is a drain on the municipal coffers and a slap in the face for the citizens of Mumbai."

Advocate Godfrey Pimenta, activist of Watchdog Foundation said, “The awarded cost is significantly inflated, and it's alarming. it's intriguing to compare this with another recent project - the MSRDC's four-lane bridge across Dharamtar Creek, which costs Rs. 2,070 crores, despite being longer and having more features. The disparity in costs raises serious concerns about corruption and mismanagement of public funds. We demand an inquiry by the Mumbai Crime Branch to investigate the possibility of corrupt practices in the tender process. The misuse of public funds cannot be tolerated, and those responsible must be held accountable for this blatant exploitation."

BMC Awards ₹2,029 Crore Contract for Versova Creek Bridge Project

A BMC official clarified, “The tender process for the project was based on a concept and construction (Design & Build) approach, outlined in the FIDIC document yellow book. The estimated cost of the project, which includes the main engineering work, elevated road, cable stay bridge, CCTV, lighting, control room, environmental management implementation, operation and maintenance costs, labor cess, insurance coverage, detailed engineering costs, and other work-related expenses, was initially set at Rs. 2,038 crore, excluding Goods and Services Tax (GST). There has been no change in this estimate since the tender notice was published. The lowest bid submitted by May. Epco-RBL (JV) was Rs. 2,029 crore, which is 0.44% lower than the municipal corporation's budget. The project duration is 42 months, with the initial six months dedicated to obtaining environmental clearances and non-destructive certificates, followed by 36 months of actual construction. The Letter of Acceptance (LOA) was issued to M/s Apco-RBL (JV) on August 29, 2024, as the contractor for the proposed work. The accepted contract cost is Rs. 2,029 crores, excluding GST."

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BMC's ₹3,990 Crore Versova Creek Bridge Project Includes GST, Contingency Funds & Essential Infrastructure Costs

According to the BMC, the total project cost of the project is Rs. 3,990 crores, comprising various components. This includes an 18% Goods and Services Tax (GST) component, incidental expenses, provisional sums, and concessional grants, which are set aside to cover unforeseen expenses or variations that may emerge during the project's lifecycle. The project cost also includes contract price increases, reflecting adjustments to the original contract price due to changes in market conditions or other factors, as well as the establishment of casting yard and other facilities, which are essential infrastructure components that support the project's construction and maintenance. Additionally, the project's operational expenses, such as rent, financial provisions, water rates, sewage rates, supervision rates, and fees paid to various authorities, are also factored into the total cost.

The inhabitants of Madh Island, situated in the Malad (West) suburb of Mumbai, are currently obliged to traverse a considerable distance of approximately 18.6 kilometers to reach Andheri, a journey that typically takes around 1 hour and 30 minutes. The proposed construction of a bridge spanning the Versova Bay at Madh Jetty-Versova is expected to significantly diminish the distance to be covered, reducing it from 18.6 kilometers to a mere 5 kilometers, thereby also substantially curtailing the travel time from 1 hour and 30 minutes to a mere 20 minutes.

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BMC's 600-Meter Cable-Stayed Bridge Over Versova Creek Set to Cut Travel Time

The BMC has unveiled a plan to construct a 600-meter cable-stayed bridge spanning Versova creek, featuring a 300-meter clear span. The project is expected to take 36 months to complete, significantly reducing travel time between the two locations to five minutes. The proposal was initially presented in 2015, but remained stalled until 2020, when the final blueprint was finalised by the BMC after a thorough review and refinement process. The project's alignment requires environmental clearances from the civic body due to its passage through a dense mangrove cover and coastal regulatory zone.