Surat, Gujarat: The 33-kilometer riverfront path, stretching from Kathor near Kamrej to Rundh Bhatha barrage, now carries a price tag of a staggering Rs 7,882 crore. This is a stark contrast to the Rs 3,900 crore envisioned when the project was first proposed in 2016.
The Surat Municipal Corporation (SMC) presented the revised proposal for approval to the standing committee on Thursday. If approved, it will then be sent to the state government for further greenlighting.
As per the latest estimates, the project will be executed in two phases. The first phase, costing Rs 6,713 crore, will focus on developing the riverfront infrastructure. The second phase, with a budget of Rs 1,169 crore, will involve diverting the storm drainage outlet and natural storm outlet.
Previously, based on the initial cost estimates, a Rs 1,991 crore loan from the World Bank was proposed. However, with the revised estimates, the civic body now seeks a significantly higher loan amount of Rs 5,290 crore from the World Bank.
“The cost escalation is attributed to rising prices of materials and project execution costs,” explained an SMC official. “The proposal is yet to be approved by the state government and complete the necessary procedures.”
Sources within the SMC hint that government grants could potentially reduce the loan amount. Additionally, there’s a possibility of dividing the project into more phases to manage the financial burden.
This cost inflation comes at a time when the city is already grappling with delays in another major infrastructure project – the Dumas seaface development. Initially proposed over 10 years ago, the first phase of this recreational project is currently underway at a cost of Rs 174 crore.
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