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Gujarat terminates metro contract given to IL&FS arm

Infra News - Published on Mon, 14 Jan 2019

Image Source: Times of India
Gujarat Metro Rail Corporation terminated the contract awarded to IL&FS Engineering & Construction citing project delays and awarded the same to J Kumar Infrastructure. The INR 374.64-crore contract was to build four stations and lay a 4.6-km viaduct for the metro project in the city. Due to financial constrains at the parent group, the company had stopped the work since September 2018.

The corporation has also decided to en-cash the bank guarantee given by the IL&FS group company.

The IL&FS Group is being run by a government appointed board after it began defaulting on debt payments from late August last. The group and its 348 subsidiaries owe over INR 94,000 crore to the lenders.

The corporation said it had given a number of notices to the company to finish the work by the March 2018 deadline, but due to the cash crunch, they were not able to complete the work as per the schedule.

Source :

Posted By : Joykumar Irom on Mon, 14 Jan 2019
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