RailEnquiry

HYDERABAD: The city's metro rail project has hit yet another roadblock. The government in its mad rush to beautify the city for COP 11 has instructed Larsen & Toubro that is executing the metro rail project, to stop work until the international biodiversity summit is over. But the instruction has caught L&T in a bind. For starters, it has come verbally and makes no mention whatsoever of compensating L&T for the loss it would incur for the days of work lost, that they estimate would be around Rs 300 crore.The Hyderabad Metro Rail authorities had verbally informed L&T in the first week of August to stop metro work from August 15 to October 19, when COP 11 ends. While L&T has so far not stopped work, officials said on Tuesday that pressure was mounting on them. "The government wants to get away without paying compensation by issuing such oral instructions. This is not fair as we will suffer a huge loss. If they want us to stop work, they must allow us to invoke Force Majeure clause," said a highly placed source in L&T. As per the concession agreement, L&T, the project concessionaire, can invoke Force Majeure clause claiming the compensation if the government issues "official instructions" to stop work. In the absence of a written communication, officials peg their estimated loss for this 60-day break at around Rs 300 crore, estimating that each day's delay is adding Rs 5 crore to the escalating project cost.

Chief minister Kiran Kumar Reddy had directed government officials to ensure that metro rail work did not come in the way of the bio-diversity convention to be held in the city from October 1 to 19.

Official denies effect of COP 11 on metro works

The CM had sanctioned Rs 125 crore for city beautification, which includes a plan to upgrade 125-km road corridor from airport to star hotels, constructing 35 new fountains, proper sanitation and remodeling of junctions among others.

But NVS Reddy, managing director of HMRL, played down L&T's concern. He said, "It is not a big deal. If L&T wants us to issue instructions in writing, we are ready to do it. But, it has to be done on a proper forum." Denying the effect of COP 11 on metro project, Reddy said the works would be continuing in other parts of the city in the non-COP areas. "When the works would continue in other parts of the city, where is the question of invoking Force Majeure clause and paying for the loss," he questioned.

However, sources in L&T said the government has asked the company to stop the entire work as the beautification work is being carried out across the city and not just the arterial roads that delegates would be using. They further said that the amount of money the government was spending on beautification in non-COP areas would go waste as L&T would demolish all of it for metro construction work. And if NVS Reddy's claim that metro work would continue in non-COP areas is anything to go by, L&T said it would bulldoze over the beautified stretches even before the convention starts.