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Mumbai BMC road projects hit by corruption and contractor cartels

2024-08-05

Rampant corruption in BMC's Road Department is deterring major infrastructure firms from bidding on contracts for road concretisation. Ravi Raja, former BMC opposition leader, said that while large firms have the technology and expertise for high-quality roadwork, they are staying away due to cartelisation and corruption. Despite its expanding road projects, the BMC struggles to attract reputable companies, as the same contractors, some of whom are blacklisted, continue to secure contracts through corrupt practices. Former corporators blame this on a troubling nexus between civic officials and private contractors, which discourages major firms from participating.

Since last year, the BMC has aimed to concretise all Mumbai roads, but only 30% of work in the eastern and western suburbs has been completed. A Rs 1,600 crore contract with Roadway Solutions India Infrastructure Ltd was canceled due to delays, and concerns are rising about awarding the next phase to a company previously blacklisted for substandard work.

BJP Mumbai President Ashish Shelar criticised the BMC for awarding a Rs 1,566 crore contract to a blacklisted firm, demanding the contract be scrapped and new tenders issued. Raja added that major companies like Gammon India and L&T are deterred by unrealistic price estimates and entrenched corruption. Former BJP Corporator Vinod Mishra noted that the Shiv Sena (UBT) was also part of this nexus and that oversight has waned since the 2022 end of the corporator term. Mishra and others argue that until this corruption is addressed, major firms will avoid BMC projects.

Sachin Padwal, a former Shiv Sena (UBT) corporator, attributed the lack of interest to complicated procedures, such as relocating underground utilities and securing traffic permissions. Municipal Commissioner Bhushan Gagrani, appointed in March, was unavailable for comment.