The Congress senior leaders accused the BJP-led Mahayuti government in Maharashtra of approving the Pune ring road projects at an inflated price to Megha Engineering and Infrastructure Ltd (MEIL) and Navayuga Engineering. The Ring Road project, crucial for alleviating traffic congestion in Pune and Pimpri-Chinchwad was managed by the Maharashtra State Road Development Corporation (MSRDC).
In September 2021, the cost of the project was estimated at Rs 12,176 crore. But in October 2024, the Maharashtra cabinet approved an escalated price of Rs 20,375.21 crore for the construction of Pune ring road, taking the total cost of the project to Rs 42,711.03 crore. The increase in the cost of the project happened in just three years.
The vice-president and Managing Director of MSRDC, Anilkumar Gaikwad, submitted a note stating that the cost escalation was due to the inclusion of state-of-the-art technology and changing specifications.
The note stated, “The project estimates were based on 2017-18 rates…the tenders were filed with ongoing rates and increase in prices of material. The said tender is based on engineering, procurement and construction basis and there is a possibility of changes in the base level and length. Issues such as cost of the land for minor minerals and making a temporary approach road can be raised and the contractor is responsible for the same.”
MSRDC engaged ‘VJTI Mumbai’ a technical institute, as a third-party reviewer and also hired ‘Knight Frank’ to compare the bids with ongoing projects by MSRDC, CIDCO and National Highways.
The report from ‘VJTI’ confirmed that the bids were higher than the estimate. While ‘Knight Frank’ on the other hand, suggested a 5-10% increase based on a study of similar large-scale ongoing projects, as per media reports.
“The project was estimated at Rs 10,087 crore but Mahayuti approved a budget of Rs 20,900 crore which is more than double the cost. This is a huge scam and MVA will investigate and take legal action against those involved after coming to power. There is a violation of rules. It was done to favour the company in return for availing funds for the ruling party,” said Congress spokesperson Pawan Khera.
The Congress leader alleged that the cost of the Pune ring road is double that of the work done by National Highway Authority of India (NHAI) or other state governments in the country.
Apart from the Congress, NCP (SP) working president Supriye Sule and legislator Rohit Pawar had also accused the state government for approving the project rate at an escalated price.