Mumbai: BMC to penalise contractors for delay in setting up oxygen plants

The fine is likely to be one per cent of the contract cost for the delay of every week

Even as the Brihanmumbai Municipal Corporation (BMC) has completed setting up of oxygen plants, having a total capacity of 55 metric tonnes, at nine of the civic hospitals, the project that was supposed to be completed by July, was completed only in August. The BMC is now likely to penalise the contractor of these plants as they have not adhered to the deadline and delayed it by almost four weeks. The fine is likely to be one per cent of the contract cost for the delay of every week.

With an eye on the third wave and the state government warning the districts and the corporations about the delta variant, the overcautious BMC had fast tracked its work on more supply of oxygen in the city. It was following the shortage of oxygen supply faced during the second wave, that the civic body had to run helter-skelter for the procurement of oxygen as the transport was delayed and the patients had to be shifted from one hospital to another.

Also Read: Mumbai is racing to get oxygen-ready

 That is when the BMC decided to set up its own oxygen generation plants. It floated a tender for setting up oxygen generation plants at nine civic hospitals in the month of May and the work for which was initially to set out to be completed by July, but was completed in August. The setting up of oxygen plants had cost the civic body about Rs 90 crore that included the installation of the plants and maintenance for the next five years. These plants will work on PSA method where it will take in the air, separate the nitrogen and only take the oxygen for use. However, in a move that could cost the civic body too much.

 The civic officials said that there is a minimum delay of about four to five weeks in almost all of the nine hospitals and we are now seeking advice from the finance department if the penalty is required or not. One of the officials, not willing to be named, said, “We are lucky enough that the third wave did not hit us at such a time when our plants were still being set up. But there was a good enough delay and as per the contract there is a provision to penalise the contractor with 1 percent of the contract cost per week, and we are seeking approval in this case.” P Velrasu, additional municipal commissioner, had confirmed this and said, “I have instructed my staff to look into the delay and charge a penalty if required.”

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