Chennai: The cost of completing the underground Chennai Metro rail work along Anna Salai may go up at least by 20 per cent, say sources.
Recently, tenders were floated for completion of this underground network along the arterial road after Chennai Metro Rail’s erstwhile contractor Gammon India’s contract was terminated sometime ago.
“The cost may go up at least by 20 per cent owing to various reasons. We are in the process of estimating the exact amount. Soon, the new contractor will be fixed and subsequently, work on this stretch will resume,” an official of Chennai Metro Rail Ltd. (CMRL) said.
In 2011, Gammon India, along with Russia-based Mosmetrostroy, secured a contract worth Rs.1,947 crore from CMRL for the construction of seven underground stations along Anna Salai, including LIC, Government Estate, Teynampet, Nandanam and Thousand Lights.
Gammon India had exhausted about Rs.1,100 crore for nearly 60 per cent of the work done, the official said.
In July, the contract of Gammon India was terminated owing to delay in the completion of the work. This happened a few months after its joint venture partner Mosmetrostroy abandoned the project because of severe financial crunch.
This is the third time that CMRL has terminated a contract. Earlier, the contracts of Consolidated Construction Consortium Ltd. (CCCL) and Lanco Infratech Ltd. were terminated owing to tardy progress of work. The retendering process and completion of work by the next contractor took quite sometime.