Reputed firms keeps away from BMC's road contracts

MUMBAI: The failure of Mumbai's municipal corporation, the richest in India, to attract reputed infrastructure companies to bid for its multi-crore road contracts, does not come as a surprise.

The Brihanmumbai Municipal Corporation(BMC) attempted to weed out dubious contractors with alleged political connections. It was their shoddy work which resulted in bad quality roads which forced the administration to make tender conditions more stringent.

But apparently it did not work as the BMC found out on Friday. When bids were opened, the list contained the same set of contractors who were earlier penalized for poor quality work. To get around the stringent rules, these small-time contractors entered into joint ventures with bigger firms, and even hired cement plants for a few months to show they were capable of executing large projects.

Roads constructed by these contractors in the past were shoddily done and the administration had levied penalties on them when these roads developed potholes. Some of them were downgraded for inferior quality work and there are inquiries pending against them.

So why did the reputed firms stay out once again? The answer lies in a well-entrenched nexus among civic administration officials, some powerful standing committee members and private contractors.

Well-established companies are not interested in these projects due to 'unnecessary' procedural wrangles, red tapism and rampant corruption. These important projects include cement concreting of roads, construction of hospitals, hostels, staff quarters and dispensaries, structures for water supply and sewerage pumping stations, reservoirs, tunnels, bridges and underground subways.

Some blamed the BMC for fixing unrealistic price estimates for undertaking the work, which makes it unviable for big firms. Besides, large companies have huge overhead costs and hence quote higher rates for projects.

In the past, there have been allegations that some dubious contractors with no engineering background, managed to get themselves registered as highly qualified ones in connivance with civic officials. Unless this nexus is broken, the well-known companies will keep their distance from civic projects.

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