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After a delay of four years, cost escalation is next hurdle for SATIS

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Swapnil Rawal

Posted: Jan 06, 2008 at 0000 hrs IST

Mumbai, January 5 The fate of the Station Area Traffic Improvement Scheme (SATIS), the grand plan to decongest the area outside key railway stations, is hanging in balance. After the depreciating dollar threw the value of the World Bank assistance—SATIS is part of the showcase World Bank-aided Mumbai Urban Transport Project (MUTP—-askew, the Mumbai Metropolitan Region Development Authority is now dealing with a more serious issue: Following a four-year delay, the project is seeing a huge cost escalation, to the tune of 25 to 30 per cent. The delay in implementation and increase in cost of construction materials since 2003-2004, when the cost estimates were prepared, are to blame, according to MMRDA officials.

Worse, tenders for the project are still to be invited, with officials awaiting a decision on whether SATIS will remain a part of MUTP. A team of World Bank officials visiting Mumbai on Monday is expected to take a decision on the fate of the project, confirmed Joint Metropolitan Commissioner and MUTP Project Director Milind Mhaiskar.

According to PRK Murthy, chief of Transport and Communication at the MMRDA, the precise revised cost is still being calculated, but the figure is expected to rise significantly. While the original cost of the project was Rs 73 crore, the new figure is expected to be well over Rs 100 crore. “There will be an increase in the project cost of around 25-30 per cent, but we are yet to finalise the estimates. The hike in the prices of steel and cement has caused the project cost to shoot up,” Murthy stated.

Meanwhile, the general agreement drawings (GAD) for the four stations—Borivali, Dadar, Ghatkopar and Chembur—have been finalised. If the project is delinked from MUTP, the question of funding will have to be sorted out between the Brihanmumbai Municipal Corporation (BMC) and the MMRDA.

Earlier, the Pedestrian Grade Separation Scheme (PGSS), including foot overbridges for pedestrian safety, was delinked from MUTP. The Rs 70-crore project is now to be completed by the BMC. However, none of the proposed subways or foot overbridges at 30 major intersections in the island city and suburbs have been completed.

swapnil.rawal@expressindia.com

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