Civic body awaits administrative sanction on revised estimate for the Phase III of underground drainage scheme

Addition of more areas in the project and increase GST rate to 18% from 12% has reportedly led the increase in the cost of the project by about ₹90 crore, sources said

Published - May 24, 2024 09:45 pm IST - TIRUCHI

L&T has reportedly completed 85% of Phase III of the underground drainage scheme in the city.

L&T has reportedly completed 85% of Phase III of the underground drainage scheme in the city. | Photo Credit: FILE PHOTO

The cost of the Phase III of the underground drainage scheme, being implemented in the city, is likely go up.

The Tiruchi Corporation is executing the project at an estimate of ₹336 crore. Larson & Toubro (L&T) was awarded the project under the Atal Mission for Rejuvenation and Urban Transformation (AMRUIT) scheme in 2020.

Formation of sewage line for 331 km, construction of pumping mains for 21.5 km, and construction of pumping stations at Indira Nagar, Loudu Nagar, Kulavaipatti, Muthukumarasamy Nagar, Panjapur, Arasu Colony, and Natchathira Nagar were part of the project. It was aimed at providing UGD connection to 32,000 households in Wards 37, 39, 41, 31, 35, 36, 38, 40, 42, 43, 45, 52, 53, 60, and 63.

According to sources, the company is said to have completed more than 85% of the work. During the construction, the civic body added some more areas to the project causing cost escalation. It is said that the Goods and Service Tax (GST) on estimate had gone up to 18% from 12%. These factors have led to revision in the estimate of the project.

A senior official of the Corporation told The Hindu that it was estimated that the cost might go up by about ₹90 crore. The revised estimate had been sent to the State government for administrative sanction. It was being apprised by a committee. The civic body had received some queries on the proposal and they would be addressed soon.

The work would not be delayed due to the development. It was expected that the project would be completed before August.

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