Logistics

With ₹2,785-crore orders, L&T becomes Chennai Metro Rail’s biggest vendor

TE RAJA SIMHAN Chennai | Updated on January 22, 2018 Published on December 23, 2015

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Bags new ₹889-cr project stalled after exit of Russian firm





Larsen & Toubro has become the top vendor for Chennai Metro Rail Ltd (CMRL), with cumulative order worth ₹2,785 crore.

It recently bagged an ₹889-crore order to complete the stalled construction of the line between Saidapet and AG-DMS after Russian company Mosmetrostroy walking out of the project due to payment issues.

The Heavy Civil Infrastructure Business of L&T secured the order from CMRL with plans to complete the project — the company’s sixth with Chennai Metro — in 20 months.

The scope involves engineering, procurement and construction of four stations at AG-DMS, Teynampet, Nandanam, Saidapet and Saidapet ramp portion with associated tunnel works.

Other works include mechanical, electrical, plumbing and architectural works at these stations.

Abrupt departure

L&T was roped in to complete the stalled project after 60 officials of Mosmetrostroy involved with CMRL, along with its Indian joint venture partner Gammon, left the project abruptly in May.

Mosmetrostroy wanted CMRL to pay an additional amount for the escalation in project costs. This was, however, declined by CMRL.

The Gammon-Mosmetrostroy joint venture was awarded two contracts for design and construction of underground stations and associated tunnels for CMRL amounting to ₹1,947 crore.

This covered a total length of 18 km and 19 underground stations.

The exit of Mosmetrostroy officials has left over 70 of its sub-contractors in the dark as the company owed them nearly ₹29 crore.

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Published on December 23, 2015
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