As even the lowest bids for the underground stations under phase II have overshot the estimated cost, Chennai Metro Rail is likely to cancel the tenders and float them afresh. This may delay the project by three-six months, sources said.
Last year, Metro Rail floated tenders for building tunnels and stations along the Madhavaram-Taramani stretch. A few months ago, the contracts were awarded to Tata Projects and Larsen and Toubro for constructing the tunnels from Madhavaram to Kellys and Kellys to Taramani respectively. The initial work has also begun in many parts of the city, with barricades erected and the road width occupied at several places.
To construct the 29 stations from Madhavaram to Taramani, Metro Rail had called for tenders. Bids were opened a few weeks ago. Metro Rail had divided the work into five packages — Madhavaram-Perambur; Ayanavaram-Kellys; KMC-Royapettah; Radhakrishnan Salai-Adyar; and Adyar Depot-Taramani.
Three firms emerged as the lowest bidders for the five packages. While two of them got one tender contract each, from Madhavaram to Perambur and Ayanavaram to Kellys respectively, the third firm got three contracts: KMC-Royapettah; Radhakrishnan Salai-Adyar; and Adyar Depot-Taramani.
“All the three firms which emerged as the lowest bidders have quoted 30%-40% higher than the projected estimate. So, we are thinking of cancelling these tenders and float fresh tenders. A final decision will be taken very soon,” a highly placed source said.
If the tenders are cancelled, the project may be delayed by three-six months. “We are reviewing the revised deadline and how long it will take [to complete the work] if we go for fresh tenders. We will certainly try to finish the project as soon as possible,” another source said.
Metro Rail sources said that since this stretch would receive funding from Japan International Cooperation Agency, discussions would have to be held with the bilateral development organisation.
Train services under phase II will begin first on the stretch between Poonamallee and Power House.
