The construction of Panvel Municipal Corporation’s proposed ‘Swarajya’ headquarters has come under scrutiny after the project’s cost reportedly increased by 43.01%, while its completion deadline was extended by nearly two years.
According to information obtained under the Right to Information (RTI) Act and cited by Loksatta, the project cost excluding GST has risen from approximately Rs 112.93 crore to Rs 161.49 crore. Including GST, the revised cost is around Rs 190.56 crore.
The civic headquarters was planned on a plot in Sector 16, New Panvel, close to the Navi Mumbai International Airport and the Panvel-Sion highway. The tender estimated the construction cost at Rs 110.78 crore excluding GST. The contract was awarded to Harsh Constructions Pvt Ltd for around Rs 112.93 crore on April 29, 2022, with a 30-month completion period.
The original deadline of November 2024 was not met. Extensions subsequently pushed the target to April 2025, October 2025 and finally October 31, 2026.
Several factors have been cited for the cost escalation, including design modifications, additional work, increased quantities, foundation revisions, changes involving steel and iron, deleted work and GST.
A key issue concerns the foundation. Project records reportedly indicate that soil strata were found around 1.5 metres deeper than initially expected, requiring additional excavation and design changes. However, the tender reportedly required the contractor to conduct a fresh soil investigation before construction began.
Panvel Mayor Nitin Patil said changes were made to portions of the original design and alleged that the contractor had quoted seven percent below the base estimate without properly studying the tender. According to him, the contractor faced difficulties during execution and could not progress beyond five percent of the work.
The case has raised broader questions over project planning, tender scrutiny, contractor assessment and monitoring of municipal infrastructure.
RTI activist Suhas Wankhede has sought clarity on the reasons for each extension, responsibility for delays, rate revisions and the steps taken to prevent further cost escalation.
The project’s progress and revised deadline are now under closer scrutiny as Panvel prepares for rapid urban and infrastructure growth.
Source: Urban Acres
