Chennai Metro cancels contract cost Rs 371 cr awarded to IL&FS-PJSC JV

Chennai Metro Rail Limited terminated the contract worth Rs 371 crore with JV of IL&FS-PJSC because of the delay of construction work.

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CHENNAI (Metro Rail News): The Chennai Metro Rail Limited (CMRL) has ended the civil contract worth Rs 371.2 crore awarded to the consortium of IL&FS Transportation Networks Limited (ITNL) PJSC Kyivmetrobud (IL&FSPJSC JV) for the Phase-I extension of CMRl project indicating an extensive delay in the completion of construction work.

In December 2016, CMRL had given a contract worth Rs 371.218 crore to IL&FS-PJSC JV for the construction of a couple of underground stations at Sir Thiyagaraya College & Korukkupet on the 9-km extension of CMRL from Washermenpet to Wimco Nagar. The work was supposed to be completed in 20 months of time as per the terms of the contract.

The IL&FS Transportation Networks Limited (ITNL) is a part of the IL&FS Group. The contractor leaves the work because of the financial crunch.

Chennai Metro Rail officials stated that they have no choice but to cancel the contract because they were displeased with the weak pace of construction. We try to do everything likely to help the firm complete the work. We cancel contracts only if there is no other option. The contractor struggled with a severe shortage of cash for various months and the progress of work was bad. That’s why we decided to close the contract recently.

The work contract for the balance work is already given to an existing couple of contractors who are performing different works for the CMRL and have already started completing the left work, as the target is to reach the stretch operational by June.

The officials are hoping that the work would now be completed timely. “We will shortly call for tenders to carry out interior works,” an official said.

Earlier, CMRL had terminated the contract of Gammon India and CCCL in the Phase-I project after they missed to meet the deadlines.

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