All clear for SLBC tunel

Govt to address cost escalation issue

Hyderabad: Decks are almost cleared for resumption of Srisailam Left Bank Canal (SLBC) tunnel project works with Telangana government deciding to implement recommendations of a high-level committee, which backed price escalation demand of the contractor in view of increased prices of steel, cement and fuel.

Chief Minister K Chandrashekar Rao vowed to complete the project within the next three years. In a meeting held with representatives of all parties besides MLAs and MPs of Nalgonda district as well as irrigation department officials at Assembly Committee Hall-1 on Thursday, KCR instructed district administration to take steps to resume works at the earliest. Accordingly, officials have called for a meeting with contractor, Jayaprakash Associates, on Friday.

Almost half of the drilling works for tunnel of 44 km were completed after which the contractor stopped works citing price escalation.

He communicated to the government that agreement made in 2005 were not feasible due to delay in completion of the project as well as increased costs of raw materials.

Telangana engineering experts contended that the contractor agreed to complete the project by 2010, but it was delayed because the successive Seemandhra rulers delayed payments to the project intentionally.

Leaders of all parties requested the government to be considerate to price escalation demand of the construction company since it was not correct to expect them to go ahead with rates fixed some 10 years ago. KCR and Irrigation Minister T Harish Rao too echoed similar sentiments.

The Chief Minister stated that his government would ensure project was completed within three years.