Payment row may delay Chennai metro

T. E. Raja Simhan | | Updated on: Mar 12, 2018


Stations remain uncompleted, and the parties may go for arbitration.

Chennai Metro Rail Ltd and Chennai Consolidated Consortium Ltd (CCCL) are involved in a tiff over payment.

While this is likely to delay the construction of stations, there are efforts to go in for arbitration, according to sources who did not want to be named.

Sources in Chennai Metro said CCCL is delaying the construction of stations, including Koyambedu, CMBT, Arumbakkam, Vadapalani, Ashok Nagar, Ekkatuthangal and Alandur.

“They are having internal problems and putting the blame on us. We pay vendors as and when they finish the work. However, CCCL has not completed its work on time and blames us over a delay in payment,” a source said.

A senior CCCL official, however, claimed Chennai Metro is yet to release Rs 30 crore for the completion of work.

“We are negotiating with Chennai Metro to sort out the issue. Without money, we are unable to carry out our work. We may consider arbitration,” said the official.

CCCL is yet to close the stations, and without this, electric cables cannot pass through them. This means trains cannot pass through either during trials, said the Chennai Metro official.

In November, Chennai Metro started testing the first set of trains manufactured by Alstom in Brazil.

Under the plan, commercial operation was to commence by July or August.

However, if the trial run is delayed, the start of the commercial operations may take up to year end, he said.

The next stage of testing will be at the elevated section between Koyambedu and St. Thomas Mount. This will be carried over 3-4 months, but depends on how quickly stations are completed.

Chennai Metro, an equal joint venture between the Centre and State governments, is implementing the Rs 14,600-crore rail-based transport project with Rs 8,646 in funding from Japan International Cooperation Agency.

The project, which is expected to ease traffic congestion in the city, will have two stretches totalling 45 km linking important locations in the city to the airport.

Published on January 21, 2014
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