Due to sharp increases in cement and steel prices, major infrastructure projects in the city have been stalled or partially paused. Private enterprises that have taken on projects requiring civil components have engaged with Smart City Thiruvananthapuram Ltd (SCTL) about a modification in the cost.
Steel and cement costs have skyrocketed, forcing enterprises to demand cost increases from SCTL. Steel prices have risen by Rs 3,000-3,500 per tonne in the last month, while cement sack prices have risen by Rs 80-100. This has shaken the corporations that won the contract by stating market costs for cement and steel at the time.
“Many of our contractors have requested price increases. We have also sent a request to the finance department requesting a specific exemption for smart city projects since they must be completed in mission mode “Vinay Goyal, CEO of SCTL, said He stated that the pace of the developments has slowed.
SCTL officials stated that cost escalation would be impossible since it would violate the terms of the bidding agreement. The chances of reaching an agreement on cost escalation are slim, which would further postpone the operations and require SCTL to extend the timetables.
The spike in steel and cement costs has hampered the development of the multilevel car parking project (MLCP) at Palayam and Thampanoor. Thampanoor’s MLCP was granted for Rs 18.8 crore. The project is in the piling stage, with 47 of the 254 piles done.
The construction of the MLCP in Palayam A block was granted for Rs 30 crore. This project’s test pile has only recently begun. Smart road projects have already been hampered by constant rain, and the surge in cement prices has exacerbated the situation.
MLCPS at Palayam and Thampanoor were supposed to ease parking issues in two key city areas. The Thampanoor plan involves a G+4-story smart parking system for 22 automobiles and 400 bike parking spots, as well as an electric vehicle charging station.
The quote for MLCP in Palayam included the cost of labor and materials, including waste, tools, and tackles, setting machinery and transit, lifting, setting, installing and putting in position, design creation, and so on for the entire effective completion of the operation.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.