Banglore Metro | BMRCL Writes to IL&FS Unit over ORR Metro Line Contract

The IL&FS is a subsidiary of debt-ridden group company IL&FS has participated in all the three packages of Bengaluru’s 19-km ORR metro project.

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Bengaluru: Before taking a final call on awarding the 19 Km Outer Ring Road (ORR), the Bangalore Metro Rail Corporation (BMRCL) has written to IL&FS Engineering and Construction seeking its response to eight queries. With IL&FS in a deep mess, the BMRCL wants to insulate its projects from any problems in the future.

The IL&FS is a subsidiary of debt-ridden group company IL&FS has participated in all the three packages of Bengaluru’s 19-km ORR metro project.

The BMRCL wants to insulate its projects from any problems in the future 19-km Outer Ring Road (ORR) contract.

Ajay Seth, managing director of BMRCL said that there is need to wait… No decision, either canceling of bids or calling fresh tenders for ORR metro work, has been taken till now,”

The letter to IL&FS gains significance as the construction firm is said to have quoted the lowest prices in the remaining two packages of ORR metro as well. In all, five construction firms had qualified in the technical rounds. The 19-km project, divided into three packages for speed.

The BMRCL has also cited the annual reports 2017-18 of IL&FS Construction and Engineering, which acknowledges severe stress in terms of cash flows. The officials have sought to know if IECCL can improve cash flow and whether the company is affected by the huge debt of IL&FS. Another question asked was if IECCL sustains financially without support from the promoter. The construction firm has been given 10 days to respond. “Getting documents from the parent company will be easier for IL&am.

In August this year, the BMRCL had formed a separate team to study the finances of IL&FS after reports of company’s financial troubles became public. The debt-ridden IL&FS quoting lowest prices in all three packages and other contractors possibly ganging up to quote high prices have put the BMRCL in a catch-22 situation. It was way back in February 2018 that the BMRCL had floated bids for civil works on the ORR metro line. Canceling the bids would mean repeating the process all over again which went on for almost eight months.

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