Russian firm paid top dollar for Anna Salai tunneling

Chennai: It is difficult to believe that money or the lack of it alone had forced Russian firm Mosmetrostroy to shut shop in the city. The construction major, which dredged most of the Saidapet- May Day Park underground tunnel for Chennai metro rail limited (CMRL) before disappearing overnight in May last, was actually paid top dollar for the tunnelling work.

CMRL officials are still at a loss to understand why the company, which was paid 20 per cent more than three other companies working with CMRL, had actually fled abruptly, resulting in eventual termination of the entire Rs 1,957 crore contract covering its joint venture partner Gammon India Ltd.

Mosmetrostroy wound up its operations in May this year allegedly on the ground that change in the alignment on the underground stretch had resulted in cost escalation to the tune of Rs 75 crore, which CMRL had reportedly refused to pay. “Other companies were paid Rs 2 lakh per metre of tunnel, but Mosmetrostroy was paid Rs 2.5 lakh per metre,” CMRL sources privy to the issue told Deccan Chronicle. “Their (Mosmetrostroy) complaint was that the terrain was difficult to bore through and the cutters got damaged frequently. But, when the wall breaking was done, the cutters on the head of the TBM looked as good as new. Afcons completed the remaining 500 metres leading to DMS from Teynampet very easily. We still do not understand why they quit,” the officer reasoned, adding, “Afcons completed the unfinished job at their price, which was 20 per cent less than what was paid to Mosmetrostroy.”