State Government to bear burden of price escalation gap!

Lokmat News Network

Aurangabad, April 8:

The Aurangabad Municipal Corporation (AMC) administrator A K Pandey today briefed upon the meeting held two days ago (in Mumbai) regarding the implementation of new water supply scheme project. The minister concerned and the key officers of water supply and other associated departments graced the meeting.

It may be noted the cost of cement and steel have suddenly spiralled after starting of the new project. Hence the contractor is insisting to pay him the difference amount. The gap in price escalation would be paid by the state government, it is learnt.

“The meeting to review the progress and status of water project of Aurangabad was held in two phases. The first phase of meeting discussed the demand for price hike by the contractor. The Gujarat’s state government has released an order on March 24, 2022. It stated the escalated unbearable cost will be borne by the state government. Accordingly, Maharashtra Government may also take decision on this line,” said the municipal commissioner.

It is learnt that the ground level assessment verifying the price hike will be done by the state’s water supply department. They will remark and forward it for further action to the Urban Development Department (UDD). The UDD will submit it before the chief minister, who will take decision and then table the proposal (of revised prices) for approval before the cabinet meeting. The cabinet will take the final call on whether to approve the price hike or not? explained Pandey.

Earlier, the contractor has demanded for additional rise of Rs 400 crore to implement the project.

Pandey underlined that as per the outcome of the meeting the state government will pay as per the date of purchase of the said item (whether it is high or low) to ensure implementation of the project. The static demand (of uniform price hike) has not been approved (for eg: today the cost of steel is

Rs 10, but if price drops at Rs 7 tomorrow, the former will pay as per the latest price. It will not fulfil the demand made by the contractor to release Rs 10), explained the AMC civic chief.

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The decision of hiring four to six retired engineers of Maharashtra Jeevan Pradhikaran (MJP) to keep a vigil and supervise the water distribution system; seek expertise of water expert Satish B Agnihotri (from IIT-Powai) as project management consultant; and soon to launch a water app (Jal Bell) developed by a local enterpriser to upgrade status of water supply in each ward of the city, said the AMC administrator.