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IL&FS contractors move PMO for INR 2,000 crore dues

Infra News - Published on Fri, 14 Dec 2018

Image Source: moneycontrol.com
DAN reported that the IL&FS crisis has reached the door of Prime Minister Office as five flagships road projects' contractors have written a letter to IL&FS Chairman Uday Kotak and marked it to the PMO for recovery of more than INR 2,000 crore dues against IL&FS Transportation Network Ltd (ITNL) and IL&FS Engineering & Construction Ltd (IECL), the subsidiaries of IL&FS. Construction companies said IL&FS group companies had pushed them into trouble, and now they are on the verge of collapse. ITNL allegedly failed to honour the dues of these 10 construction companies, which were hired to execute five highway projects.

The letter, seen by DNA Money, shows that five projects, including Kiratpur-Nerh Chowk Expressway, Amravati-Chikhli Expresssway, Z-Morah Tunnel, Chenani-Nashri Tunnel are stuck at different stages of completion.

The letter said that "These projects were under execution at various stages of completion by these contractors. It is understood from them that a gross amount of INR 2321.02 crores is due to pay by ITNL against invoices already raised for works completed as well as certain claims raised by them within the provisions of contract agreements."

On November 10, on behalf of 10 construction companies, National Highways Builders Federation (NHBF) has sent a letter to Uday Kotak, chairman, IL&FS, PMO, Ministry of Road Transport, and National Highways Authority of India (NHAI). These companies are not in a position to take out their plant and equipment and deploy it elsewhere for commercial use and relocate their workforce on other projects, because these projects are suspended but not terminated.

The letter said that "All these companies have been intimated that their works are put in suspended state. They have not actually terminated."

NHAI as the principal employer has awarded certain highway projects to ITNL and IECC under PPP Mode (public-private partnership). Further, ITNL and IECC awarded EPC (engineering, procurement and construction) contracts to the small and medium construction companies for the execution of the highway projects.

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Posted By : Nanda Koijam on Fri, 14 Dec 2018
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