Govt Warns L&T: Fall in Line on Medigadda Repairs or Face Blacklisting

The Telangana government has threatened to blacklist construction major L&T in the state, as well as take steps to have the company blacklisted in rest of India if it does not issue “a favorable response within one week,” to the demand that the company cooperate with thegovernment in all steps needed for repairs and rehabilitation of the Medigadda barrage. The government has also made it clear that L&T PES-JV which built the barrage, that any repair and rehabilitation work must be taken up and completed at its own cost by the company.

The unprecedented ultimatum to L&T was in a letter sent by the irrigation department’s Ramagundam Circle’s superintending engineer. The letter, dated November 3 and was sent to the company on November 5.

The 14-page letter also warned L&T PES-JV that if it fails to agree to the terms set by the irrigation department, then the company could also face “recovery of costs and damages under the Revenue Recovery Act, as per prevailing Government rules in vogue,” and risks the “forfeiture of all deposits and pending payments” due to it.

However, though the warnings were categorical and made the government intentions clear, the irrigation department also said, “It is earnestly hoped that a favorable response will be received from your end within one week from the date of receipt of this letter, in the larger interest of completing the investigation works and ensuring the timely revival and rehabilitation of the Medigadda barrage.”

The irrigation department’s letter listed in detail a series of alleged violations by L&T with respect to maintenance, taking up repairs when asked to, and charged the agency with failing to “respond positively” and that it instead, “made every effort to deviate from the core issue by attributing the damages to a design-related problem.” The letter further said the construction agency had contended that “works were executed as per the approved drawings.”

Accusing the company of “blatant and deliberate violation of agreement conditions,” by “categorically refusing to restore the damages in the first instance,” the irrigation department blamed L&T PES-JV that this disregard “led to further damages to the barrage.”

The irrigation department also took objection to the company seeking “clear directions” to “enable them to proceed further with a proper assessment of the damages, including the volume of work and associated costs, based on the approved design drawings,” adding that the company ignored agreement conditions to rectify and restore the damages,

The construction major was directed to mobilise men, material, and machinery “forthwith” to take up prerequisite works and extend all necessary support to the CWPRS and the department during the investigation and subsequent rehabilitation activities. “Failure to comply with these directions will compel the department to initiate stringent action against L&T,” the letter said.