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Infra projects hit as builders cite cost issues

Jaipur: The implementation of Goods and Services Tax (GST) is giving a headache to JDA officials as the firms that were awarded infrastructure projects have expressed helplessness in continuing the work due to escalation of cost.

The representatives of firms met Jaipur Development Commissioner (JDC) to resolve the issue as it is affecting the pace of projects.

Sources present in the meeting said that representatives of Simplex Infrastructures Ltd (SIL), the firm which has been awarded work for the ambitious Elevated Road too expressed inability in constructing the project at Rs 250 crore proposed budget.

“Soon, a meeting of company representatives with GST experts will be organised. The company has asked JDA to bear the cost difference in the project due to GST. Many claimed that profit margin has decreased to zero and it would not be possible to work on the project cost decided before the implementation of GST,” said a source.

Meanwhile, to meet the deadline of Elevated road proposed between LIC Bhawan and Sodala, JDA on Monday directed the awarded firm to deploy additional machinery and labourers. This is a pet project of the state government and it plans to showcase the same in front of voters before the next assembly elections.

As per the proposal, it will take nearly 30 months to complete the project.

After completing load testing, work for city’s second elevated road was started in December 2016. Out of 548 piles for foundation of columns for elevated road, nearly 220 piles have been completed so far, a JDA official said. Construction work is affected due to delay in shifting of Electric Cables. Due to this, JDA officials are finding it difficult to carry out piling work for construction.

“Chambal Power House falls on the route and a large number of electric cables are laid in the area. Also, the VIP Civil Lines area lies in the way of the project. JDA cannot dig blatantly as it could interrupt power supply. The work would move at a snail’s pace till electric cables are shifted,” said a JDA engineer. It was informed that Jaipur Vidyut Vitran Nigam Limited (JVVNL) has given an estimate of Rs 4.5 crore for the project, which will be borne by JDA.

Source : timesofindia



This post first appeared on Daily Kiran, please read the originial post: here

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Infra projects hit as builders cite cost issues

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