MMOPL asked MMRDA to shell out money to meet massive cost escalation, but they refused to pay up, saying, ‘increase in cost is a risk factor that contractors are aware of'
A disagreement over who should bear the cost overrun of the city’s first Metro line is causing discontent between the MMRDA and the Reliance Infrastructure-led MMOPL, which is implementing the Versova-Andheri-Ghatkopar (VAG) Metro project. MMRDA has refused to pay the Rs 2,000 crore cost escalation demanded by MMOPL, making it clear that there is no way it would pay them.
One of the main reasons cited for the Metro project delay was the construction of a bridge that passes over the railway tracks at Andheri. File pic
ADVERTISEMENT
“As per the concessions agreement, it is the job of the contractor (MMOPL) to complete the project and the increase in cost and escalation is a risk factor that any company takes into consideration while bidding for the project and so the question of paying them for the escalated cost does not arise,” said a senior MMRDA official, on condition of anonymity.
The trial run of a Metro train
The cost of the delayed project has risen to over Rs 4,500 crore, up from its original cost of Rs 2,356 crore. “A few months ago after MMOPL informed us that they want the government to bear the cost, we had told them to provide us with the break up of the cost escalation, but till date they have not submitted any documents in this regard,” said Metropolitan Commissioner UPS Madan.
The Commissioner of Metro Rail Safety (CMRS), P S Baghel, began inspecting the Versova-Andheri Ghatkopar (VAG) metro rail yesterday
“MMOPL had even requested us that in order to recover the escalated cost, MMOPL was of the opinion that the Metro fares should be revised and increased, which MMRDA refused.”
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
