GST hike, inflation behind rise in Central Vista project cost

The cost of the Central Vista redevelopment project rose significantly due to higher GST rates, inflationary pressures, and structural modifications, Union Minister of State Tokhan Sahu told Parliament on Thursday (February 7).

Sahu was responding to a question by Trinamool Congress MP Mala Roy. He listed four key reasons for the cost escalation in the construction of the Vice President’s Enclave and the new Parliament building:

• Increase in GST from 12% to 18%, raising the overall cost burden
• Surging prices of key construction materials like steel and cement
• Higher wages for construction workers, driven by inflation and labour market changes
• Additional security measures and structural modifications to meet Earthquake Zone V standards for the new Parliament building

The minister said the completion date for the upcoming Common Central Secretariat (CCS) buildings has been delayed by at least a year. The first phase, consisting of CCS-1, 2, and 3, is expected to be completed by May 2025, while CCS-10 in April 2026. The initial deadline for completing CCS 1, 2, and 3 was November 2023, but the project has missed multiple deadlines.

Under the Rs 20,000-crore Central Vista Redevelopment Project, the new Parliament building, Vice-President’s Enclave, and the redevelopment of Central Vista Avenue have been completed. Construction is underway on the Executive Enclave, which includes the Prime Minister’s Office (PMO), India House, Cabinet Secretariat, National Security Council Secretariat (NSCS), and CCS-10.

The minister said the construction cost of the new Parliament building, inaugurated in 2023, and the Vice-President’s Enclave has increased from the original estimate of Rs 971 crore and Rs 214 crore, respectively. The minister did not provide details of the exact increase in the construction cost of the two projects.

The Central Vista revamp, envisioned as a landmark urban redevelopment project to modernise government infrastructure, was originally scheduled for completion by March 2024. However, multiple delays and cost escalations have affected the timeline.

The project, launched in 2019, is a flagship initiative of Prime Minister Narendra Modi. The redevelopment includes new office complexes for ministries, an upgraded Rajpath (now Kartavya Path), and a new residence for the Prime Minister. The government maintains that the project is essential for efficient governance, improved security, and modernised public infrastructure.