NMC may waive 62cr penalty, okay OCW cost hike

Nagpur | Wednesday | 20th February, 2019

Summary:

“NMC cannot waive off penalty as corporators from all parties proved OCW’s inexperience and failure. Thus, total cost of project will increase to Rs441.86 crore.The project was supposed to be completed on March 1, 2017, and cost escalated due to delays. After TOI’s report, corporators from Congress and BSP objected in NMC general body a couple of months ago. Nagpur: The Nagpur Municipal Corporation (NMC) standing committee is likely to waive off penalties of over Rs120 crore due to be paid by private water operator Orange City Water Private Limited (OCW) in a meeting on February 21. The penalty was levied following OCW’s poor performance in handling water supply, failure to ensure equal water distribution in all areas, inordinate delay in completion of 24X7 Water Supply Project, non-appointment of expats (experts in water from foreign countries) etcAlso, NMC proposes to approve cost escalation of Rs54 crore without interest in 24X7 Water Supply Project’s cost..