A proposal to revise the administrative sanction for infrastructural works at LB Nagar junction by a whopping ₹67 crore was accorded approval without discussion at the general body meeting of the Greater Hyderabad Municipal Corporation (GHMC) on Saturday.
It was one among the 10 agenda items and nine additional items that were deemed to have been approved by the Council which did not take up any of the items for discussion owing to constant disruptions.
The sanction has been revised from the initial ₹448 crore to ₹515 crore, which is attributed to a wide variety of reasons, including changes in project components, additional works, price adjustments, fund adjustments and the variance in tax patterns.
The work for construction of flyovers and underpasses near LB Nagar junction as part of the Strategic Road Development Plan (SRDP) was awarded through tendering process to the BSCPL Infrastructure Limited for ₹304.9 crore which is 7.99% less than the Internal Bench Mark value of ₹331.38 crore in 2015.
The package consisted of 13 independent structures, of which a couple of them have been removed from the scope of work and except one, all others have been completed.
The dropped components include a third level flyover from Hayatnagar side to Inner Ring Road towards Kamineni flyover and a three lane underpass near Kamineni junction towards Mansurabad.
There have also been changes in width of the Kamineni junction to three lane instead of four lane, in order to accommodate the Metro Rail extension between Nagole and LB Nagar. In lieu of these changes, it has been agreed to take up a new flyover at Nagole Junction, and maintenance works for pothole filling and patchwork on the roads at the construction site.
The government agreed to utilise the savings of ₹16.8 crore owing to these changes for formation of service roads, and the savings of close to ₹30 crore from tenders for shifting of utilities, and the balance ₹3.63 crore for other adjustments.
Further, the price adjustment component in the estimate was ₹33.14 crore which is said to be insufficient when compared with the requirement of ₹61 crore owing to the increasing prices of cement, steel and petroleum products. The contracting agency reportedly informed that they would not be able to continue with the work if the price adjustment amount is not paid.
Tax modifications are cited as one more reason for the revised sanction. Migration from Value Added Taxation to Goods & Service Tax, followed by increase in GST rates since 2015 have had a financial implication amounting to ₹58 crore, a document explaining the revised estimate said.
Price of the ‘at grade road works’ too have been revised from the earlier ₹14.4 crore to ₹21.15 crore, it said.
Published - July 07, 2024 06:21 pm IST
