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HMDA pays 20 cr for ORR delay
What was to be completed in 30 months took 80 months. The works were launched between 2006 and 2010. The Outer Ring Road (ORR), which stretches 158 km, has missed the date by a distance.
Hyderabad: What was to be completed in 30 months took 80 months. The works were launched between 2006 and 2010. The Outer Ring Road (ORR), which stretches 158 km, has missed the date by a distance.
What is interesting is the state government is reportedly paying a penalty of Rs 20 crore to Japan International Cooperation Agency (JICA).
Admitting to the delay, officials of HMDA lay the blame on land acquisition and legal issues. With regard to the penalty that the government calls ‘commitment charges’ is however being paid by the department and is not attributed to the contractor.
According to RTI information gathered by P Mallesh, the Hyderabad Growth Corridor Ltd (HGCL) stated that delay of works that were taken up under BOT had occurred since there was delay in handing over of site due to land acquisition and change in design.
The HGCL further stated that six packages under JICA phase-I and JICA phase-II were taken up. Under phase-I, works were taken up on Patancheru-Mallampet, Mallampet-Dundigal and Dundigal-Shamirpet. The phase-II covers Shamirpet-Keesara, Keesara-Ghatkesar and Ghatkesar-Pedda Amberpet.
When asked about the action taken on the contractor of ORR, the HGCL said that in respect of package 1 of JICA phase-II works (Shamirpet-Keesara) the contract of M/s UGCC, WLL has been terminated due to poor progress of works in April 2014 and it was entrusted to M/s Gayathri Projects Ltd and that the works were in progress.
Officials admit to paying delay charges under the guise of commitment fee from government funds and not levying it on contractors.
Chief General Manager (Tech) ORR project, Hyderabad Growth Corridor Ltd, B Anand Mohan, said that the delay occurred in the ORR project due to land acquisition, change in design and other legal issues. He said the project will be completed by July end.
He further said the stretch of 156.9 km is completed and now only 1.1 km is left. There are 13 contractors working on the ORR project out of which two contractors have completed their work, five others are under operation and maintenance, the remaining six contracts are handed over to HMDA. The amount taken for JICA is Rs 3,123 core and we have used and Rs 2,700 crore, he added.
When asked about the construction of toll building, Anand said 85 toll building works have been completed. The total construction work of toll gates has been in six packages, in which four packages are for construction of toll building and two are for toll canapés.
There are two service roads with total 316 km out of which 295 km work is completed and the remaining comes under the railway track and water boards which will not be constructed, said Anand Mohan.
Meanwhile, M Srinivas, secretary, Communist Party of India (Marxist) Greater Hyderabad Central City Committee, said that though the JICA works were not completed, the HGCL had issued completion certificates to the contractors.
He said so far the HMDA had paid Rs 20 crore to JICA as penalty for delay in works. He further said that no action has been taken on the contractors or the officials who are responsible for monitoring the works.
