The delay in the completion of the first phase of Chennai Metro has led to a blame game. Officials of Chennai Metro Rail Limited (CMRL) cite a financial crunch faced by at least two of its major contractors — L&T and Gammon India.
But, the contractors say no such problems exist.
According to Metro officials, Gammon India has been facing a crunch in completing the construction of seven underground stations, while L&T is facing similar problems with the construction of a depot in Koyambedu.
The contractors under-quoted the prices in a bid to get the projects, an official of CMRL said. However, officials of L&T said there was no problem and construction was proceeding at a smooth pace.
Gammon India, in a joint venture with Russia-based Mosmetrostroy, bagged two contracts worth Rs. 1,947 crore for the design and construction of the seven stations, including Government Estate, LIC, Thousand Gemini, Teynampet, Chamiers Road and Saidapet. Last week, according to officials, Mosmetrostroy said it would not able to complete the construction of stations owing to the financial crunch. Later, after negotiations, with CMRL officials, they agreed to resume work, sources said.
Initially, they had a labour strength of just about 800; after a lot of pressure, it slowly increased to about 1,200. But it wouldn’t suffice and they had been asked to further increase it, officials said.
“Several infrastructure companies are grappling with this problem. Though we have assets, we have problems in mobilising cash due to the economic situation. The layoff of workers in Mosmetrostroy is also temporary and they will be back to work on Monday,” an official of Gammon India said.
Earlier, CMRL had sent a show-cause notice to Gammon India following delays in construction work. Also, Gammon India workers had gone on brief strikes, protesting the delay in payment of dues.
