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Kochi Metro contractors face Rs 20 lakh/day penalty

Contractors were citing flimsy reasons for delay, DMRC sources said

Kochi: Irked by the delay in Kochi Metro Rail works, Delhi Metro Rail Corporation has fined the contractors who sought extension to complete the work allotted to them for the project. As per the communication received by the contractors, DMRC slapped a penalty of more than Rs 20 lakh a day for a year. This is a stark contrast with the scene elsewhere in the state notorious for time and cost overruns. “We had no other option, but to impose penalty as mentioned in the contract. Our prime motive is to complete the project on time,” a top DMRC source said.

“We want to complete the project on time, but some contractors are citing flimsy reasons for the delay in the work," the source added. Experts opine that the decision to penalise the contractors for delay would also be a huge financial boost for the DMRC. According to top sources, Larsen & Toubro Limited (L&T) has incurred a loss of '100 crore in the month of June itself.

Some of the civil works had been extended till May 2017. The contractors point to the delay in land acquisition and strikes in Kerala as the reason for the delay. However, the DMRC rejected the contentions by stating that the contractors failed to bring in sufficient work force to complete the works.

Works along the Aluva-Kaloor stretch including the construction of Metro Stations are still pending. Contractors claim that the delay in getting project design is one of the major reason. They also point to the rain the state got in the recent years for the delay.

Contractors blamed DMRC for the delay. The DMRC, however, claimed that even in the contract itself it was mentioned that the works would be complted in stages. It is not possible to compete the entire land acquisition works on time for a major project like Metro, the DMRC added.

( Source : Deccan Chronicle. )
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