BMC proposes ₹358.87-cr hike in road restoration contracts amid PNG infra push

The proposal for an increase in the value of the contracts notes that geopolitical developments have disrupted LPG and petroleum supply chains, prompting the union ministry of petroleum and natural gas to issue directions to accelerate the rollout of PNG connections

MUMBAI: The BMC has proposed a substantial increase in the value of contracts awarded for restoring roads and trenches dug by utility agencies across Mumbai, citing a sharp rise in excavation work linked to the accelerated rollout of piped natural gas (PNG) infrastructure.

The central government has directed states to accelerate the rollout of PNG connections to ensure an uninterrupted supply of household fuel (HT Photo)

The proposal, placed by the chief engineer (Roads and Traffic), seeks revision of contracts awarded for trench reinstatement work for a two-year period ending October 27, 2027. The contracts were originally awarded in October 2025 after an e-tendering process, with seven contractors selected zone-wise for Zones I to VII.

Various internal and external utility agencies routinely dig trenches on municipal roads and footpaths to lay pipelines, cables and other infrastructure required for providing civic services. The BMC appoints contractors to refill and restore these excavated stretches.

The proposal for an increase in the value of the contracts notes that geopolitical developments have disrupted LPG and petroleum supply chains, prompting the union ministry of petroleum and natural gas to issue directions on March 24, 2026 to accelerate the rollout of PNG connections to ensure an uninterrupted supply of household fuel.

BMC officials said that the central and state government orders and the circular to Mahanagar Gas had led to a significant increase in excavation activities across departments and a corresponding rise in the volume of trench refilling and road restoration work after the utilities completed their installations. The civic body collected data from all 24 ward offices regarding approved contract values, expenditure incurred and additional financial requirements arising from the surge in work.

As part of the revised proposal, the civic body has sought approval to increase the detailed estimated project cost for the seven zones to ₹618 crore, up from the earlier approved amount of ₹259.13 crore. It also seeks revision of the actual contract value from the original ₹243.52 crore to ₹583.02 crore.

The proposal reiterates that payments for trench reinstatement works follow a structured system. Eighty per cent of the admissible payment is released after completion of restoration work, while the remaining 20 per cent is linked to a three-year defect liability period and released in phases subject to satisfactory quality testing.

The BMC said the expenditure would be met through advance deposits and recovery amounts collected from utility agencies undertaking excavation works, with budgetary provisions to be made in the 2026-27 and 2027-28 budgets as required. Approval for the proposal will be sought from the Standing Committee on Wednesday under the provisions of the updated Mumbai Municipal Corporation Act, 1888.