The Mumbai Coastal Road project (South) has hit a roadblock. A disagreement over a cost escalation of INR 200 crore has emerged between the Brihanmumbai Municipal Corporation's (BMC) Coastal Road project department and Larsen & Toubro (L&T).
L&T has sought an additional INR 100 crore for each of the two packages it is constructing, namely package 1 and package 4. Despite efforts to resolve the issue at various levels within the civic body, the dispute has now moved to arbitration.
The crux of the disagreement lies in the base index used for cost escalation. L&T has referred to the December 2017 index, while BMC officials argue that it should be based on the February 2018 index, as per tender rules.
If a resolution cannot be reached through arbitration, both parties may resort to legal action. So far, representatives from both parties have remained silent on the matter.
Despite these issues, the massive coastline road project is expected to be completed by May 2024, which is 7 months later than initially planned.
The Coastal Road Project extends from the Princess Street flyover to the Bandra-Worli sea link's Worli end. It includes 2.19 kilometres of bridges, 2.05 kilometres of each tunnel, and 4.35 kilometres of road that has been reclaimed. There will be four-four lanes on the road over bridges and reclamation. The tunnel features three-three additional lanes. One lane on either side will be reserved for emergency vehicles and the BRTS (Bus Rapid Transit System).
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