BMC cancels tender process for underground parking lots

Terming the ambitious underground car parking project “financially unviable”,the BMC has cancelled the current tendering process for the same and will soon re-invite tenders for a more feasible option. If the new option does not attract private contractors,the BMC will have no option but to scrap the controversial project,at least for now,top civic officials said.

Additional Municipal Commissioner Aseem Gupta said as per the current financial model,the cost of a single parking space works out to a whopping Rs 30 lakh. “As per the current tender conditions,the BMC has to pay the entire project amount as downpayment to the contractors. Considering the civic body’s delicate financial condition,it is not going to be possible to pump in such a huge amount of money at one time. When we re-invite tenders,we will make a new condition of payment wherein the amount will be given to the contractor in installments over the next 10 years. This way,our present requirement of money will reduce by at least 40 per cent,” said Gupta.

He added that if the new tender conditions do not attract private players,the BMC will have to scrap the project for the time being.

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First proposed in early 2009,the project aims at creating underground parking space for about 3,500 cars at seven locations in South Mumbai,from Crawford Market to Regal Cinema in Colaba. The BMC will have to spend Rs 444 crore on the project,wherein the contractor will build the parking lots,operate and maintain them for 30 years before handing them over to the civic agency. Officials are still unclear how much money the BMC will get from the parking fees collected by the contractor.

Of the seven locations,work was to begin first at the underground parking lots at Regal Cinema and Hutatma Chowk.