India, April 2 -- The BMC'S standing committee on Wednesday approved a cost escalation of over Rs.2,000 crore of the Gargai dam project with a majority vote. The proposal to sanction Rs.5,051 crores, a significant hike over the initial BMC estimate of Rs.3,105 in 2020, was passed with a vote after the opposition questioned the move.

The entire standing committee had on March 11 held back the escalation proposal of Rs.5,396 crore, demanding an explanation for the escalation. Following the committee's refusal to sanction it, the administration negotiated with the contractors, Soma Enterprises in three rounds and managed to bring down the costs by Rs.345 crore. The standing committee members were also briefed with a power point presentation...