NST water project cost skyrockets from Rs 321 cr to Rs 770 cr

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By Our Reporter

SHILLONG, May 5: In what can be best described a gross financial mismanagement or complete lack of foresight, the New Shillong Township Water Supply Scheme, conceptualised in 2014 at a cost of Rs 321 crore, will now be completed at Rs 770 crore.
The State Cabinet on Tuesday approved the revised cost of the project, jumping from the already escalated Rs 553 crore to a staggering Rs 770 crore. The project, being executed by Hyderabad-based M/s BAC Infratech Private Limited, was earlier accorded approval in 2024 for Rs 538 crore.
Defending the massive hike, MDA spokesperson Wailadmiki Shylla offered a rather weak explanation, stating that the dam now has to be shifted upstream because a scientific landfill site is being constructed at Nonghali. He cited additional requirements for power lines and extra land acquisition as reasons for the cost overrun.
When asked why these issues were not anticipated earlier, Shylla admitted that the government was uncertain about the landfill location as multiple EOIs had been submitted.
This shocking admission reveals the MDA Government’s classic lack of planning and coordination. The PHE Department had already prepared detailed plans, only for the government to later realise the project could not proceed near the landfill site — a basic conflict that should have been identified years ago.
The financial mess doesn’t end here. The government is yet to even sanction Phase-II of the New Shillong Water Supply Scheme, proposed at a massive Rs 1,111.56 crore.
In the same cabinet meeting, the MDA also approved another cost revision — an indoor sports stadium whose cost has jumped from Rs 22.75 crore to Rs 35.40 crore after the location was changed from Pomlakrai to Jongksha and the scope of work was enhanced to host the National Games next year. The built-up area has increased from 12,031 sqm to 15,417 sqm.

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