The Times of India                29.05.2013 

SMC shells out Rs 23cr extra on 4 infrastructure projects

SURAT: The local civic body has shelled out not less than Rs 23 crore to contractors over and above the cost decided upon for four infrastructure projects in the last few years.

The money spent is termed as deviation cost that was paid when a project was delayed on account of a change in design or some other technical issue or simply on the grounds that the contractor escalated construction cost forcing the civic body to cough up extra money.

Sources said Surat Municipal Corporation (SMC) has paid Rs 23 crore as deviation money to the contractors involved in the construction of four bridges in the city. These projects are Gujarat Gas Circle flyover, level crossing on Surat-Bhusawal line railway over bridge, Dindoli main loop line level crossing railway over bridge and Varachha main road flyover.

Figures available with TOI suggest that in the past five years, 50 per cent of the projects were completed after a delay of three months to two years.

"If the civic body can pay deviation money to a contractor for changing the design and on account of cost escalation, why can't it charge a penalty from the contractor for not completing the project on time?" asked a ruling party councillor.

However, officials have a different explanation. Executive engineer (bridge cell) B K Gadhia told TOI, "We ultimately abide by the decision taken by the standing committee. When they decide to pay extra money to the contractor what can we do?"

A member of the standing committee for the last two years said, "The contractors pressurize us to pay more due to our anxiety to get the works completed on time. We have no choice but to pay them extra money."

Surat is otherwise also known to spend lavishly on projects like flyovers and bridges.

In the last five years, the bridge cell of the SMC built three new bridges on river Tapi, nine different flyovers and seven bridges on the creeks.

However, the money spent on the construction of bridges leaves a lot to be desired as in nearly 25 per cent cases, the civic body paid extra money as deviation fee.