Float new tenders to finish metro: Madras High Court

Chennai: Considering the significance of the Chennai Metro Rail project, the Madras high court has permitted CMRL to go ahead with fresh tender process to complete the remaining protion by employing a new contractor.

Passing an order on a batch of petitions, Justice K. Ravichandrabaabu has directed Gammon India, erstwhile contractor of CMRL and CMRL to go for arbitration in four weeks. Originally, Gammon India had bagged Rs 1,947-crore contract in 2011 to design and construct seven underground stations running up to 18-km length.

The Russian company Mosmetrostroy, which took up the tunnelling work, completed 90 per cent of the work on the Saidapet-Gemini stretch and 70 per cent of work was completed in the LIC-Thousand Lights phase. While the work was underway, the Russian firm abandoned it due to various reasons. Later, CMRL decided to terminate its contract with Gammon due to delay in completion of the tunnelling project after Mosmetrostroy disappeared. CMRL wanted to involve the bank guarantee against Gammon after the termination of the contract. Gammon sought for a stay of this order.

The judge also restrained CMRL from executing the bank guarantee issued by Gammon till the results of arbitration. The judge said “The CMRL is at liberty to proceed with the notification inviting fresh tenders for completion of the subject matter of the contract without prejudice to the contentions of the respective parties before the Arbitral Tribunal”. He said “The parties are directed to take appropriate steps to initiate arbitral proceedings within four weeks.”