Steel prices have increased by just 2.5% to 5% since June, but the cost of the controversial steel flyover project was hiked by a whopping 32.8% over the same period.
The Bangalore Development Authority (BDA) estimated the project to cost Rs 1,350 crore in June when it was ready to start the work.
The steel price was Rs 39,000 per tonne back then. Four months on, the agency has revised the cost estimate to Rs 1,791 crore — an almost one-third increase.
A Bengaluru-based technical expert has gone even further. He says the flyover should not cost more than Rs 695.86 crore to build.
The cost escalation has added another dimension to the project which has been already criticised as being "unnecessary, ill-designed, unaesthetic and harmful to Bengaluru's decreasing green cover". The BDA has said that it would require 55,000 tonnes of steel to build the first-of-its-kind steel flyover in the city. Details provided by Steel Form, a firm based out of Richmond Road in Bengaluru, show that the current prices of I-Section, C-Section and mild steel plates per tonne range between Rs 40,000 and Rs 41,000. These are steel girder sections, which are used for making bridges, and the prices have been quoted by a wholesale trader, not the manufacturer. If purchased directly from steel companies and not the wholesale dealers, the steel price would be much lower than what has been quoted by the trader.
As per the details available, the average cost of steel of these three main sections was Rs 46,000 per tonne in 2014. A year later, it went down to Rs 43,000 per tonne. In January this year, the price slumped to Rs 40,000 per tonne, and over the next two quarters it fell to Rs 39,000 per tonne. "Steel prices are slightly surging for the last one week now," said a representative of Shri Lakshmi Steel Suppliers.
Quotations show that the steel price was Rs 39,000 per tonne in June when the BDA was set to start the work and estimated the cost at 1,350 crore. In just four months, the cost shot up by 32.8% though the surge in steel price ranged between 2.5% and 5%.
When contacted, C N Nayak, an engineering member of the BDA board, justified the hike in the project cost, saying there were valid grounds for the same. But he didn't explain the grounds on which the cost was revised from Rs 1,350 crore to Rs 1,850 crore. The final project cost, however, was reduced by Rs 59 crore.
R K Jaigopal, a member of the BBMP Technical Advisory Committee, has estimated that the flyover cost should not be more than Rs 695.86 crore. The difference with the final estimate is a whopping Rs 1,095.14 crore. To get the flyover's plan area of 1,61,140 sqm, the width is multiplied by the structure's total length of 6,700 metres. The cost then works out to Rs 567.49 crore, Jaigopal explained in a letter written to DH earlier. He added Rs 50 crore each for utility shifting and land acquisition, and another Rs 28.37 crore for preparation of a detailed project report (DPR) and supervision charges at 5%.
BDA insiders insist there are no deviations in the steel flyover design and it remains unchanged from what it was four months ago.
![]( "The Bangalore Development Authority (BDA) estimated the project to cost Rs 1,350 crore in June when it was ready to start the work. DH File photo")
Steel prices have increased by just 2.5% to 5% since June, but the cost of the controversial steel flyover project was hiked by a whopping 32.8% over the same period.
The Bangalore Development Authority (BDA) estimated the project to cost Rs 1,350 crore in June when it was ready to start the work.
The steel price was Rs 39,000 per tonne back then. Four months on, the agency has revised the cost estimate to Rs 1,791 crore — an almost one-third increase.
A Bengaluru-based technical expert has gone even further. He says the flyover should not cost more than Rs 695.86 crore to build.
The cost escalation has added another dimension to the project which has been already criticised as being "unnecessary, ill-designed, unaesthetic and harmful to Bengaluru’s decreasing green cover”. The BDA has said that it would require 55,000 tonnes of steel to build the first-of-its-kind steel flyover in the city. Details provided by Steel Form, a firm based out of Richmond Road in Bengaluru, show that the current prices of I-Section, C-Section and mild steel plates per tonne range between Rs 40,000 and Rs 41,000. These are steel girder sections, which are used for making bridges, and the prices have been quoted by a wholesale trader, not the manufacturer. If purchased directly from steel companies and not the wholesale dealers, the steel price would be much lower than what has been quoted by the trader.
As per the details available, the average cost of steel of these three main sections was Rs 46,000 per tonne in 2014. A year later, it went down to Rs 43,000 per tonne. In January this year, the price slumped to Rs 40,000 per tonne, and over the next two quarters it fell to Rs 39,000 per tonne. "Steel prices are slightly surging for the last one week now,” said a representative of Shri Lakshmi Steel Suppliers.
Quotations show that the steel price was Rs 39,000 per tonne in June when the BDA was set to start the work and estimated the cost at 1,350 crore. In just four months, the cost shot up by 32.8% though the surge in steel price ranged between 2.5% and 5%.
When contacted, C N Nayak, an engineering member of the BDA board, justified the hike in the project cost, saying there were valid grounds for the same. But he didn’t explain the grounds on which the cost was revised from Rs 1,350 crore to Rs 1,850 crore. The final project cost, however, was reduced by Rs 59 crore.
R K Jaigopal, a member of the BBMP Technical Advisory Committee, has estimated that the flyover cost should not be more than Rs 695.86 crore. The difference with the final estimate is a whopping Rs 1,095.14 crore. To get the flyover’s plan area of 1,61,140 sqm, the width is multiplied by the structure’s total length of 6,700 metres. The cost then works out to Rs 567.49 crore, Jaigopal explained in a letter written to DH earlier. He added Rs 50 crore each for utility shifting and land acquisition, and another Rs 28.37 crore for preparation of a detailed project report (DPR) and supervision charges at 5%.
BDA insiders insist there are no deviations in the steel flyover design and it remains unchanged from what it was four months ago.
The Bangalore Development Authority (BDA) estimated the project to cost Rs 1,350 crore in June when it was ready to start the work.
The steel price was Rs 39,000 per tonne back then. Four months on, the agency has revised the cost estimate to Rs 1,791 crore — an almost one-third increase.
A Bengaluru-based technical expert has gone even further. He says the flyover should not cost more than Rs 695.86 crore to build.
The cost escalation has added another dimension to the project which has been already criticised as being "unnecessary, ill-designed, unaesthetic and harmful to Bengaluru's decreasing green cover". The BDA has said that it would require 55,000 tonnes of steel to build the first-of-its-kind steel flyover in the city. Details provided by Steel Form, a firm based out of Richmond Road in Bengaluru, show that the current prices of I-Section, C-Section and mild steel plates per tonne range between Rs 40,000 and Rs 41,000. These are steel girder sections, which are used for making bridges, and the prices have been quoted by a wholesale trader, not the manufacturer. If purchased directly from steel companies and not the wholesale dealers, the steel price would be much lower than what has been quoted by the trader.
As per the details available, the average cost of steel of these three main sections was Rs 46,000 per tonne in 2014. A year later, it went down to Rs 43,000 per tonne. In January this year, the price slumped to Rs 40,000 per tonne, and over the next two quarters it fell to Rs 39,000 per tonne. "Steel prices are slightly surging for the last one week now," said a representative of Shri Lakshmi Steel Suppliers.
Quotations show that the steel price was Rs 39,000 per tonne in June when the BDA was set to start the work and estimated the cost at 1,350 crore. In just four months, the cost shot up by 32.8% though the surge in steel price ranged between 2.5% and 5%.
When contacted, C N Nayak, an engineering member of the BDA board, justified the hike in the project cost, saying there were valid grounds for the same. But he didn't explain the grounds on which the cost was revised from Rs 1,350 crore to Rs 1,850 crore. The final project cost, however, was reduced by Rs 59 crore.
R K Jaigopal, a member of the BBMP Technical Advisory Committee, has estimated that the flyover cost should not be more than Rs 695.86 crore. The difference with the final estimate is a whopping Rs 1,095.14 crore. To get the flyover's plan area of 1,61,140 sqm, the width is multiplied by the structure's total length of 6,700 metres. The cost then works out to Rs 567.49 crore, Jaigopal explained in a letter written to DH earlier. He added Rs 50 crore each for utility shifting and land acquisition, and another Rs 28.37 crore for preparation of a detailed project report (DPR) and supervision charges at 5%.
BDA insiders insist there are no deviations in the steel flyover design and it remains unchanged from what it was four months ago.
Steel prices have increased by just 2.5% to 5% since June, but the cost of the controversial steel flyover project was hiked by a whopping 32.8% over the same period. The Bangalore Development Authority (BDA) estimated the project to cost Rs 1,350 crore in June when it was ready to start the work.
The steel price was Rs 39,000 per tonne back then. Four months on, the agency has revised the cost estimate to Rs 1,791 crore — an almost one-third increase.
A Bengaluru-based technical expert has gone even further. He says the flyover should not cost more than Rs 695.86 crore to build.
The cost escalation has added another dimension to the project which has been already criticised as being "unnecessary, ill-designed, unaesthetic and harmful to Bengaluru’s decreasing green cover”. The BDA has said that it would require 55,000 tonnes of steel to build the first-of-its-kind steel flyover in the city. Details provided by Steel Form, a firm based out of Richmond Road in Bengaluru, show that the current prices of I-Section, C-Section and mild steel plates per tonne range between Rs 40,000 and Rs 41,000. These are steel girder sections, which are used for making bridges, and the prices have been quoted by a wholesale trader, not the manufacturer. If purchased directly from steel companies and not the wholesale dealers, the steel price would be much lower than what has been quoted by the trader.
As per the details available, the average cost of steel of these three main sections was Rs 46,000 per tonne in 2014. A year later, it went down to Rs 43,000 per tonne. In January this year, the price slumped to Rs 40,000 per tonne, and over the next two quarters it fell to Rs 39,000 per tonne. "Steel prices are slightly surging for the last one week now,” said a representative of Shri Lakshmi Steel Suppliers.
Quotations show that the steel price was Rs 39,000 per tonne in June when the BDA was set to start the work and estimated the cost at 1,350 crore. In just four months, the cost shot up by 32.8% though the surge in steel price ranged between 2.5% and 5%.
When contacted, C N Nayak, an engineering member of the BDA board, justified the hike in the project cost, saying there were valid grounds for the same. But he didn’t explain the grounds on which the cost was revised from Rs 1,350 crore to Rs 1,850 crore. The final project cost, however, was reduced by Rs 59 crore.
R K Jaigopal, a member of the BBMP Technical Advisory Committee, has estimated that the flyover cost should not be more than Rs 695.86 crore. The difference with the final estimate is a whopping Rs 1,095.14 crore. To get the flyover’s plan area of 1,61,140 sqm, the width is multiplied by the structure’s total length of 6,700 metres. The cost then works out to Rs 567.49 crore, Jaigopal explained in a letter written to DH earlier. He added Rs 50 crore each for utility shifting and land acquisition, and another Rs 28.37 crore for preparation of a detailed project report (DPR) and supervision charges at 5%.
BDA insiders insist there are no deviations in the steel flyover design and it remains unchanged from what it was four months ago.