Hyderabad: L&T has written 19 letters to HMRL between October 1, 2016, and June 20 this year for the reimbursement of Rs 4.85 crore, and HMRL has replied to every one of them. HMRL and L&T cite different sections of the agreement to press their claims. L&T says Article 41.1 of the agreement provides for compensation for any change in the project alignment. L&T demanded reimbursement in accordance with Clause 47.4.
Article 41.1 says if there is an increase in costs due to change of alignment or certain other factors, “the aggregate financial effect of which exceeds the higher of Rs 1 crore and 0.5% of the realisable fare in accounting year, the government shall pay the amount specified.” Article 47.4 says the parties agree that payments due from one party to the other shall be made within the period of set forth; if no such period is specified, it has to be paid within 30 days of receiving a demand.
HMRL cites Clause 5.1.1 to say that the government need not reimburse L&T. Clause 5.1.1 says the concessionaire at its own cost and expense should procure finance for and undertake the design, engineering, procurement, construction, operation and maintenance of the rail system.
