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Why pay contractor now for work that will start in October, asks Aaditya

Former minister writes another letter to civic chief over road repair project, say move to pay now will lead to loss of Rs 30 crore to BMC

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Aaditya Thackeray had earlier written to the BMC chief alleging a scam in the appointment of contractors for the road repair project. File pic/Rane Ashish

Aaditya Thackeray had earlier written to the BMC chief alleging a scam in the appointment of contractors for the road repair project. File pic/Rane Ashish

Former state minister Aaditya Thackeray has written yet another letter to the BMC chief Iqbal Singh Chahal regarding work being undertaken by the BMC. This time, he has demanded that the Brihanmumbai Municipal Corporation not pay Rs 650 crore to the contractor for road works as mobilisation advance right now, as that the work will start only in October. He further said that paying the money right now would lead to a Rs 30-crore loss to the BMC.

“If the work starts in October 2023 and the BMC gives the mobilisation advance right now, then the civic authority will lose the principal amount of Rs 650 crore. The basic interest of this amount is Rs 3.5 crore [per month]. Thus it will lose Rs 30 crore of interest till October,” Thackeray wrote in the letter dated February 10. He added that the civic body should not pay 10 per cent of the total project cost to the contractor till the actual work starts.

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