Project Cost Escalation – Bharat Pulse News

The Maharashtra cabinet on Friday approved a cost escalation of ₹20,375.21 crore for the Pune Ring Road project, bringing the total budget for the ambitious infrastructure initiative to ₹42,711.03 crore. The substantial cost increase, which has occurred over the span of three years, comes despite the fact that construction on the project is yet to commence. Revised Project Details and Cost Allocation According to the revised plan, the Pune Ring Road project is divided into two segments: the eastern and western corridors. The eastern section, stretching from Urse (Mumbai-Pune Expressway) to Solu (Alandi-Markal road), and further from Solu to Sortapwadi (Pune-Solapur road), was initially estimated to cost ₹10,159.82 crore in September 2021. On Friday, the length of this section was revised to 72.335 km, and the cost was increased to ₹19,932.98 crore. The western corridor, running from Urse to Varve Budruk (Satara road), had an initial budget estimate of ₹12,176 crore. This cost has now been revised to ₹22,778.05 crore, pushing the total budget to ₹42,711.03 crore for the entire project. Reasons for Cost Escalation Anilkumar Gaikwad, Vice-President and Managing Director of Maharashtra State Road Development Corporation (MSRDC), submitted a note to the state cabinet detailing the reasons behind the cost escalation. The increase is attributed to factors such as inclusion of advanced state-of-the-art technology, modifications in project specifications, updated material costs, and changes in construction parameters since the original estimates in 2021. The note clarified that the project’s initial estimates were based on 2017-18 rates, but tenders were subsequently filed at prevailing rates, leading to a significant cost hike. Additional expenses are also anticipated due to the cost of land for minor minerals and the construction of temporary approach roads, which are expected to be managed by the contractor. Third-Party Review and Approval To validate the revised costs, the Maharashtra government engaged Veermata Jijabai Technological Institute (VJTI) as an independent third-party evaluator. A chief engineer committee, led by Gaikwad, was formed to review VJTI’s findings and subsequently approved the revised budget based on the institute’s report submitted in July 2024. The Pune Ring Road project, once completed, is expected to significantly enhance connectivity and reduce traffic congestion in and around Pune. However, with the new budget approval, all eyes will be on the state government and MSRDC to ensure that construction progresses as planned without further delays or cost escalations.

Maharashtra Govt Approves Revised ₹42,711 Crore Budget for Pune Ring Road

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