- DMRC cancelled the contract with Soma Construction after they demanded 40% hike in contract amount
- L&T and Soma are staying away from retender citing huge loses
- Contract between DMRC and KMRL will end in June 2017
The construction works of Kochi Metro Rail, between Maharaja's College to Petta, has been disrupted after Delhi Metro Rail Corporation (DMRC) terminated the contract awarded to Soma Enterprise Ltd. Though the contract was cancelled partially, after Soma demanded a cost escalation of 40% of the contract, DMRC is now in the doldrums after they failed to find a new agency.
Though DMRC invited tenders for carrying out the work from Maharaja's College to Pettah/SN Junction Tripunithura, they have not been able to find a new agency. Only two companies submitted the quotation, and one of them does not have the basic technical know-how while the other quoted 55% above the amount fixed by DMRC. Now the company will have to float new tenders, and this is likely to delay the construction works further.
Further, the contract between DMRC and Kochi Metro Rail Ltd (KMRL) will end in June 2017. Of the 25 km stretch, only 60% have been completed so far, and work of 7 km stretch is still pending. DMRC had earlier stated that they would complete the stretch from Aluva to Palarivattom by December 2015 and rest by March 2016.
The foundation stone for the project was laid on September 13, 2012, and an agreement was signed between DMRC and KMRL on May 13, 2013. The project was estimated at 5, 181.79 crores and KMRL had agreed to pay a remuneration of 6% to DMRC. As the work was delayed over a year, the agencies will have to work out the finances involved before entering into a new contract.
If DMRC and KMRL fail to tide over the existing crisis and immediately chalk out a plan to continue with the work, the dream of Kochites to travel in the metro will go farther still.
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Last Updated Mar 31, 2018, 7:06 PM IST