Delhi's Barapullah Project Faces Cost Overruns and Legal Hurdles

The Delhi government is addressing cost overruns in the Barapullah Phase-3 project, originally sanctioned in 2015 at Rs 1,260.63 crore. A fresh proposal for Cabinet approval is needed, accounting for pending liabilities and arbitration awards. The project's completion faces delays due to pending tree-felling permissions.

In a bid to manage escalating costs, the Delhi government is set to prepare a new proposal for the Barapullah Phase-3 project. Initially sanctioned at Rs 1,260.63 crore and already utilizing Rs 1,238.68 crore, the project necessitates fresh Cabinet approval to accommodate pending financial liabilities.

Officials revealed that Chief Minister Rekha Gupta approved the new proposal and an arbitration award payment during a recent finance committee meeting. The elevated road, initially expected to conclude in 2017, remains incomplete largely due to legal and logistical setbacks.

Arbitration settled in the contractor's favor, requiring a Rs 175 crore payout. However, pending tree-felling permissions continue to obstruct progress. With the project currently 87% complete, the government is consulting the law department for final decisions on arbitration awards and potential appeals.

(With inputs from agencies.)