Mumbai Urban Transport Project-II: MRVC seeks state help to tackle cost escalation.

THE MUMBAI Rail Vikas Corporation (MRVC), the nodal agency to implement suburban rail projects, has asked the state government to help with the escalated cost of projects listed under the Mumbai Urban Transport Project (MUTP) II. The cost of these projects, launched in 2010, has escalated by almost Rs 3,000 crores due to improved scope of work and inflation, railway officials say.

MUTP-II had divided the listed projects under Part A to be funded by the World Bank while state government was required to fund projects listed under Part B. Due to cost escalation of various projects - fifth and sixth lines between Thane and Diva railway stations, fifth and sixth lines between Kurla and Chhatrapati Shivaji Terminus station (CST), extension of harbor line until Goregaon and sixth line between Borivali and Mumbai Central stations- the railway body has asked for further financial help with these projects.

“The project cost of MUTP-II has increased to Rs 8,087.11 crores till 2016, from the original cost of Rs 4,281 crores as sanctioned in 2010. Increased scope of work with terms of addition in works listed under the projects and increase in other costs including labor and land has made the project nearly twice as costly. Sometimes, a change in design planning due to differences with the available design also adds to the cost,” a senior MRVC official said.

“The delay in completion of projects on time puts a burden on the travel needs of commuters,” Subhash Gupta, a railway activist said.

THE INDIAN EXPRESS