Nishikant Khajuria
JAMMU, Dec 27: Following controversy over payments and consequent stoppage of work by the main contractor on Chenani-Nashri Tunnel Project, the Developer is learnt to have entrusted the excavation job to a new construction company for timely completion of the work.
As all attempts of negotiation with M/s Leighton Contractor (India) Pvt Ltd failed, the Project Developer M/s IL&FS Transportation Network Limited has allotted the job to Beig Constructions for completion of pending excavation work on the main tunnel, sources informed the EXCELSIOR.
After finalizing modalities for contract with the Beig Constructions, the IL&FS has taken control of all equipments and plants at the tunnel site from the Leighton, sources added.
As reported earlier, the work on the tunnel was completely abandoned by the Leighton last month following refusal of the Project Developer IL&FS to clear the dues and claims of the contractor. Since then, the Developer was looking for an alternate contractor.
The controversy on alleged over-billing had erupted immediately after the flash floods in September. As IL&FS refused to release funds alleging that works were not executed on ground, the Leighton on the other hand resorted to cost cutting measures, such as reduction in manpower and executing work in single shift only instead of round the clock. The initial reducing of the job time finally led to complete stoppage of work by the contractor since mid November.
As all attempts of negotiations with the Leighton remained fail, the IL&FS finally changed the contractor and allotted the job to Beig Constructions, which has begun the excavation work on the main tunnel from Nashri side, sources informed.
For other related jobs on the tunnel, some other companies may also be allotted the contract in near future, sources added.
Pertinent to mention that more than seventy percent work on the project has been completed while only one kilometer excavation on the 9 km main tunnel is pending.
May 2016 is the deadline for completion of this Rs 2519 crore tunnel project, which is part of proposed four-laning of Jammu-Srinagar National Highway and will act as an all-weather alternative to the existing NHAI section connecting Chenani in Udhampur with Nashri in Ramban district. It will also reduce the existing road distance between the two points from 41 kms to 10.89 kms.
Since Chenani-Nashri Tunnel Project has been allotted by the National Highway Authority of India to the main Developer IL&FS on BOT (Build Operation Transfer) annuity basis, any delay in execution of the venture would not affect the Concessionaire but only the Developer.
In the annuity model, a Developer is awarded the job and the cost of building the project is paid to him on a six-month basis after the venture starts commercial operations. This de-risks the business of the operator to a large extent.
Follow our WhatsApp channel