The revamp of the Sion Hospital may take some more time as negotiations between the BMC (Brihanmumbai Municipal Corporation) and the contractor have reportedly fallen apart. The original plan included the construction of a 20-storey medical college building, a 25-storey hostel complex, a three-storey hospital building, and a 19-storey hospital staff quarters.
It is said that renegotiations over the original cost of Rs 671 crore (including taxes) didn’t go as smoothly as expected. This has now caused BMC to call fresh tenders from contractors for the renovation of the hospital. This process could take an additional three months.
Rajeshree Shirwadkar, the area’s corporator and standing committee member, along with other corporators in the region alleged that municipal authorities are responsible for the delay and demanded an inquiry into the matter.
As per the guidelines of the Central Vigilance Commission, post-tender negotiations are one of the main sources of corruption while it also recommends a ban on the practice unless it is used to negotiate with the lowest bidder.
Tenders for the project were closed in March last year with Ahluwalia Contracts offering the lowest bid at Rs 543 crores sans taxes and other charges. After negotiating the cost down to Rs 523 crores, the BMC didn’t take any further steps. In September, the BMC issued a new proposal of Rs 671 crores to the standing committee and mentioned that it will renegotiate the cost with the contractor. However, with negotiations failing, the project is now at a standstill.
Local MLA and standing committee member, Rais Shaikh (SP) said: “The civic administration misled the standing committee into clearing the proposal. They told us they will renegotiate the rate, although the contractor was unaware about it.”
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