The revision in the estimates of the cost of municipal corporation’s projects is on a rise. The Standing Committee has approved cost revision of at least 18 civic projects. It will result in the difference of Rs 23.58 crore in a period from January to August this year.

The reasons for revising the original cost vary for different projects. However, escalation in raw material cost is the major reason and the contractors provide for themselves a buffer to absorb additional cost in case of rise in the prices of materials.

The revision in the costs of projects is generally done to save ‘favourite’ contractors from the penalty clause or blacklisting, say insiders.

Surendra Baxi, the Congress Leader in AMC, said his party will not endorse such proposals in future as it did not agree with such backdoor salvaging of contractors.

He said the cost revisions could be avoided if officials in the department concerned plan the projects in advance and weigh pros and cons before inviting the tenders.

Sources said connivance of the councillors and officials with contractors was an open a secret and the practice cuts across party lines. When asked, Baxi said he did not want to be dragged into a controversy by offering comment on the issue.

Standing Committee chairman Asit Vora said allegations of saving contractors from penalty clause were baseless. “The estimates may be revised for several reasons like unexpected development during the execution of a contract or amendment in the work itself besides price rise of materials,among others,” he said.

... contd.