MSRDC spent Rs 336 crore on consultants

In the past 15 years, the cash-strapped, state-run Maharashtra State Road Development Corporation (MSRDC) has spent a staggering Rs 336 crore just on hiring project management consultants (PMCs) to carry out studies for implementation of projects, reveals data obtained by The Asian Age through Right to Information (RTI).

The data further indicates that Rs 336 crore was spent on PMCs for conducting feasibility studies, pre-tender and post-tender activities, and occasionally traffic pattern. It is interesting to note that at times, PMCs were appointed to carry out studies despite MSRDC officials knowing that these projects were not practical or financially feasible. A case in point is the proposed F1 racing track on which MSRDC spent nearly Rs 9 crore for feasibility studies alone. MSRDC’s plan was to generate revenue by organising F1 races on the track. However, it was later scrapped, citing shortage of land in the Mumbai Metropolitan Region (MMR).

According to the data, in 2015, MSRDC had proposed having four new helipads; one each in southern, eastern, western and central Mumbai to improve connectivity to business hubs, avoid traffic snarls during VIP movement, and during medical emergencies. MSRDC appointed a PMC for the same and spent nearly Rs 10 crore. However, the project is still on paper.

Similarly, MSRDC had also appointed a PMC to conduct traffic studies on the Bandra-Worli Sea Link (BWSL) for which, it spent around Rs 5 crore. The point to note is that the traffic estimated by the PMC was much higher than what traffic currently passes along the sea link. Further, due to shortage of funds, the state government transferred the proposed sea link between Sewri and Navi Mumbai known as MTHL to Mumbai Metropolitan Region Development Authority (MMRDA) however MSRDC ended up spending around Rs 5 crore on feasibility studies alone.

The RTI reveals that there are five to six private consultancy companies who have been awarded these projects namely Sowil Limited, Span Consultants and Stup Consultants, who have been regularly bidding and winning the bidding process for acting as consultant on various projects.

MSRDC officials said that many of these projects never took off because after the PMCs carried out studies, the costs were found to be way higher than estimated and considering MSRDC’s weak financial position, the projects were ultimately abandoned.

RTI info The RTI query reveals that in the past five years, MSRDC has spent around Rs 26 crore on PMCs to conduct studies on how to make the 94-km-long Mumbai-Pune Expressway safer for motorists.