Cost Escalation in New Parliament Building and Vice President Enclave
NEW DELHI: The costs associated with the New Parliament Building and the Vice President Enclave have seen a significant increase, as reported by the Ministry of Housing and Urban Affairs in Lok Sabha. This escalation in expenses is attributed to several factors including an increase in GST, rising material costs, and additional security measures.
Initial Bids and Cost Estimates
Initially, the government projected the cost of the New Parliament Building at Rs 971 crore, with Tata Projects winning the tender at Rs 862 crore. Similarly, the VP Enclave was estimated at Rs 214 crore, and Kamladityya Construction Private Ltd secured it at Rs 206.5 crore. However, recent reports suggest that the revised cost for the New Parliament Building has climbed to around Rs 1,200 crore, reflecting a nearly 25% increase over the original estimate.
Factors Contributing to Cost Increase
According to Minister of State for Housing and Urban Affairs, Tokhan Sahu, the escalation is due to:
- Increase in GST rate from 12% to 18% as of July 1, 2022.
- Rising prices of steel, cement, and labor wages during the project execution.
- Additional security provisions mandated by security agencies.
- Design adjustments to comply with earthquake resistance requirements for Seismic Zone-V.
Completion Timeline
The New Parliament Building and the revamp of Kartavya Path have been completed, while construction of three buildings under the Common Central Secretariat (CSS) is expected to finish by May this year, with one more building slated for completion by April 2026.
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