Traffic Relief Delayed: Pune Ring Road Project Hits Roadblock With Skyrocketing Tenders

Increased rates and scandal shadows cloud the future of Pune’s traffic solution.

24 May 2024

By Payoshi Bisht 

The Maharashtra State Road Development Corporation (MSRDC) Ring Road project, a crucial initiative aimed at alleviating traffic congestion in Pune and Pimpri-Chinchwad cities, is facing hurdles as companies bidding for the project have submitted tenders at significantly increased rates, ranging between 40 to 45 percent. 

The project, divided into East and West phases spanning a total length of 127 kilometres and a width of approximately 110 metres, encountered this setback during the tendering process, which concluded recently after attracting bids from 12 companies.

Following the opening and scrutiny of the tenders, it was revealed that companies such as Megha Engineering, Navayug Engineering, PMC Infra, Roadway Solution India Infra and GR Infra emerged as the lowest bidders for various segments of the project. However, the bids came in substantially higher than the estimates prepared by the corporation, leading to a potential increase in the project cost by nearly one and a half times.

With the estimated cost of the ring road initially pegged at around 16 thousand crore rupees, the escalated bids could potentially inflate the project’s total cost to a staggering 22-23 thousand crores. Concerns have been raised within the corporation regarding whether to proceed with re-tendering or to accept the tenders at the increased rates, with officials highlighting the risk of potential disputes if the latter course of action is pursued.

Complicating matters further, it has come to light that some of the companies involved in the tender process, namely Megha Engineering and Infrastructure Limited and Navayug Engineering Company have been embroiled in the ongoing electoral bond scam.