Chennai Metro terminates contract worth Rs 371 crore with IL&FS-PJSC JV

Chennai, India (Urban Transport News): The Chennai Metro Rail Limited (CMRL) has terminated the civil contract worth Rs 371.2 crore awarded to the joint venture of IL&FS Transportation Networks Limited (ITNL) PJSC Kyivmetrobud (IL&FS-PJSC JV) for the Phase I extension of Chennai Metro Rail project citing extensive delay in the completion of construction work.

In December 2016, CMRL had awarded a contract worth Rs 371.218 crore to IL&FS-PJSC JV for the construction of two underground stations at Sir Thiyagaraya College & Korukkupet on the 9-km extension of Chennai Metro Rail project from Washermenpet to Wimco Nagar. The work was expected to be completed in 20 months of time according to the terms of the contract.

The IL&FS Transportation Networks Limited (ITNL) is a part of the IL&FS Group. The contractor left the work due to the financial crunch. Chennai Metro officials said that they were left with no choice but to terminate the contract because they were displeased with the poor pace of construction. “Usually, we try to do everything possible to help the firm finish the work. We terminate contracts only if there is no other option.

The contractor struggled with severe cash crunch for several months and the progress of work was poor. Hence, we decided to end the contract recently,” an official said, reported by The Hindu. The contract for the balance work is already awarded to the existing two contractors who are executing other works for the Chennai Metro Rail project and have already started finishing the remaining work, as the plan is to get the stretch operational by June.

The officials are hoping that the work would now be finished on time. “We will shortly call for tenders to carry out interior works,” an official said. Earlier, Chennai Metro Rail Limited (CMRL) had terminated the contract of Gammon India and CCCL in the Phase I project after they failed to meet deadlines.