AHMEDABAD: After a city-based construction company backed off from contributing their 25% share towards the construction of a rail overbridge over Jagatpur railway crossing as part of a PPP agreement, the civic body has now proposed to bear that cost.
A resolution was passed by the roads and building committee on Monday to seek permission from the standing committee on the issue. The cost is almost Rs 17 crore, claims a senior AMC official. The resolution will be taken up for approval by the standing committee on Thursday.
The company cited losses during the 2020 and 2021 Covid years for backing out of the deal. According to AMC’s proposal, the developer had agreed to enter into the PPP mode with the railways which was contributing another 25% towards the pass. The remaining 50% was being declared by Gujarat Urban Development Company.
Now AMC will pay the 25% share. The bridge was to be a two-lane pass over the railway line. The concept of PPP mode was first propounded in 2017. The Chandlodia railway pass was one of the few such projects undertaken in PPP mode. “A formal proposal will be placed for approval before the standing committee after which 25% project cost will be borne by AMC,” said a senior official.
