Cost overrun leaves Cuncolim women’s hostel work in limbo

Margao: A 130-bedded working women’s hostel being built at the Cuncolim industrial estate under a central govt scheme faces an uncertain future after the Goa Industrial Development Corporation’s (GIDC) board flagged a sharp cost escalation and asked state govt to consider either scrapping the project or shifting it to an alternative location.


The project, funded under the finance ministry’s Special Assistance to States for Capital Investment (SASCI) Scheme 2024-25, was awarded to a contractor in June 2025 at Rs 15.6 crore — about 2.6% below the estimated cost of Rs 16 crore put to tender.


However, revised estimates submitted by the project consultant pegged the revised cost at Rs 20.5 crore, reflecting a cost escalation of 28% over the original estimated cost and 31% over the tendered amount.


The cost revision stemmed partly from a dispute over the method used to calculate concrete quantities for foundation piling work. The project consultant submitted two separate estimates — one with concrete measured in cubic metres and another in running metres — and noted that adopting the running metre method would increase costs by Rs 50 lakh. Following recommendations from the consultant and the field manager at Cuncolim, GIDC accepted the cubic metre method as adequate and less financially burdensome.


The cost escalation was also driven by the need for foundation piling after soil testing revealed such work was required at the site.


However, at its board of directors meeting held on Jan 29, the GIDC recorded its observation that the revised cost of Rs 20.5 crore was “disproportionately high for a 130-bedded facility”. The board authorised the managing director to convey this concern to Goa govt and seek consideration of either abandoning the project or finding an alternative site for it.


The project’s status came to light in govt’s reply to a legislative assembly question tabled by Fatorda MLA Vijai Sardesai in the last session of the assembly.
Check AP SSC 10th Result 2026 on TOI