BMC Proposes ₹358.87 Crore Increase for Road Restoration Contracts Amid PNG Infrastructure Expansion
BMC proposes ₹358.87-cr hike in road restoration contracts amid PNG infra push

Image: Hindustan Times
The Brihanmumbai Municipal Corporation (BMC) has proposed a ₹358.87 crore increase in road restoration contracts due to heightened excavation activities linked to the rollout of piped natural gas (PNG) infrastructure in Mumbai. The revised project cost for seven zones is set to rise from ₹259.13 crore to ₹618 crore.
- 01The BMC's proposal includes increasing the estimated project cost for road restoration from ₹259.13 crore to ₹618 crore.
- 02The original contract value is proposed to rise from ₹243.52 crore to ₹583.02 crore.
- 03Excavation work has surged due to directives from the union ministry of petroleum and natural gas to expedite PNG connections.
- 04Payments for restoration work follow a structured system, with 80% released after completion and the remaining linked to a defect liability period.
- 05Funding for the increased costs will come from advance deposits and recovery amounts from utility agencies.
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The Brihanmumbai Municipal Corporation (BMC) has proposed a significant increase in contracts for restoring roads affected by utility excavations, primarily due to the accelerated rollout of piped natural gas (PNG) infrastructure in Mumbai. The chief engineer (Roads and Traffic) has submitted a proposal to revise the estimated project costs for seven zones from ₹259.13 crore to ₹618 crore, with the actual contract value increasing from ₹243.52 crore to ₹583.02 crore. This rise in excavation work follows directives from the union ministry of petroleum and natural gas aimed at ensuring a steady supply of household fuel amid geopolitical disruptions. The Maharashtra government has also mandated urgent implementation of PNG works. The BMC's proposal indicates that payments for trench reinstatement will be structured, with 80% released upon completion and the remaining 20% tied to a three-year defect liability period. Funding for these increases will be sourced from advance deposits and recovery from utility agencies, with budget provisions planned for the 2026-27 and 2027-28 fiscal years. Approval for the proposal will be sought from the Standing Committee under the Mumbai Municipal Corporation Act.
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The increase in road restoration contracts will directly affect the quality and safety of roads in Mumbai as excavation work intensifies.
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