Maharashtra cabinet approves cost hike for Pune ring road project
07 Oct 2024
2 Min Read
CW Team
The Maharashtra cabinet has approved a substantial cost escalation of Rs 203.75 billion for the Pune ring road project, bringing the total project cost to Rs 427.11 billion. This increase comes despite the project being in its early stages, with construction yet to begin.
Project details:
The Pune Ring Road (East) will span from Urse, located on the Mumbai-Pune Expressway, to Solu along the Alandi-Markal road, and further extend from Solu to Sortapwadi on the Pune-Solapur road. Initially estimated at 68.19 km in length and pegged at Rs 101.59 billion in September 2021, the project has now been revised to a 72.335 km stretch, leading to a new estimated cost of Rs 199.32 billion.
The Pune Ring Road (West) segment will link Urse on the Mumbai-Pune Expressway to Varve Budruk on the Satara road. This segment, originally set at Rs 121.76 billion, has seen its cost surge to Rs 227.78 billion.
Reasons for cost escalation:
Anilkumar Gaikwad, Vice-President and Managing Director of the Maharashtra State Road Development Corporation (MSRDC), explained that the cost hike is due to the adoption of advanced technologies and revisions to project specifications. He pointed out that the initial estimates were based on 2017-18 prices, but the tendering process factored in current rates, reflecting increased material costs.
The project will follow an Engineering, Procurement, and Construction (EPC) model, which may result in adjustments to the base levels and overall length. Additionally, expenses related to land acquisition for minor minerals and the construction of temporary approach roads have also contributed to the cost increase, with these aspects falling under the contractor鈥檚 responsibility.
The revised cost structure aims to address the complexities of modern infrastructure requirements, ensuring that the project aligns with future urban planning needs for Pune鈥檚 growing metropolitan area.
(Financial Express)
The Maharashtra cabinet has approved a substantial cost escalation of Rs 203.75 billion for the Pune ring road project, bringing the total project cost to Rs 427.11 billion. This increase comes despite the project being in its early stages, with construction yet to begin.
Project details:
The Pune Ring Road (East) will span from Urse, located on the Mumbai-Pune Expressway, to Solu along the Alandi-Markal road, and further extend from Solu to Sortapwadi on the Pune-Solapur road. Initially estimated at 68.19 km in length and pegged at Rs 101.59 billion in September 2021, the project has now been revised to a 72.335 km stretch, leading to a new estimated cost of Rs 199.32 billion.
The Pune Ring Road (West) segment will link Urse on the Mumbai-Pune Expressway to Varve Budruk on the Satara road. This segment, originally set at Rs 121.76 billion, has seen its cost surge to Rs 227.78 billion.
Reasons for cost escalation:
Anilkumar Gaikwad, Vice-President and Managing Director of the Maharashtra State Road Development Corporation (MSRDC), explained that the cost hike is due to the adoption of advanced technologies and revisions to project specifications. He pointed out that the initial estimates were based on 2017-18 prices, but the tendering process factored in current rates, reflecting increased material costs.
The project will follow an Engineering, Procurement, and Construction (EPC) model, which may result in adjustments to the base levels and overall length. Additionally, expenses related to land acquisition for minor minerals and the construction of temporary approach roads have also contributed to the cost increase, with these aspects falling under the contractor鈥檚 responsibility.
The revised cost structure aims to address the complexities of modern infrastructure requirements, ensuring that the project aligns with future urban planning needs for Pune鈥檚 growing metropolitan area.
(Financial Express)
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