The work to renovate three civic hospitals has faced another setback, with the Brihanmumbai Municipal Corporation (BMC) scrapping a third tender process because the bids were much higher than its estimates.
The contracts for the three hospitals, MT Agarwal in Mulund, Shatabdi in Govandi and Bhagwati on Borivali, are together worth more than ₹1,000 crore.
In need of repair
Upgrades at the three hospitals have been in the offing for years. As their buildings are completely dilapidated, Agarwal Hospital has been evacuated and is running elsewhere, and Shatabdi Hospital is functioning partially.
The BMC estimates that upgrading Agarwal Hospital will cost ₹300 crore, Bhagwati ₹430 crore and Shatabdi ₹333 crore. Budgetary provisions were made in the last two years, with this year’s budget setting aside ₹100 crore for the work. The BMC had invited bids last year, but the quotes were much higher than estimated. The same happened recently, the third time so far.
“This time, the contractor quoted as much as 50% more than our estimate. All contracts have a margin of 5% to 10%, but we cannot award 50% more,” said Sunil Dhamne, Deputy Municipal Commissioner, Health.
Officials said the standing committee would never approve such high rates.
The BMC is looking to revise its schedule of rates to bring them on par with market rates. Currently, it is based on 2013 rates, which could be the reason for high bids. The tender will be floated again based on new rates. If the BMC gets favourable responses, proposals would be tabled before the standing committee in the next few months and work could start after monsoon.
‘Conduct probe’
“Recently, when contractors had quoted almost double our estimates for waste management contracts, the administration ordered an inquiry against the official responsible. Even this case should be inquired. Are they trying to favour private hospitals?” asked Prakash Gangadhare, BJP corporator from Mulund. Mr. Gangadhare recently wrote to the municipal chief, demanding an inquiry in the matter.
