BHUBANESWAR: Half the Bhubaneswar goes knee-deep in water every time it rains because the much-hyped integrated sewerage project has not gone anywhere, thanks to the executing agency failing to meet the deadline.
Hyderabad-based IVRCL, a leading EPC (Engineering, Procurement and Construction) and Infrastructure company, which was entrusted with the work in 2013, is now under corporate insolvency resolution process as per the National Company Law Tribunal.
While IVRCL has withdrawn its resources leaving the work incomplete, the state government has not been able to make up its mind on how to take it forward and find a solution to the project.
The infra firm was awarded contract for construction of 254 km of sewer network at a cost of Rs 576.79 crore in July 2013 but only around 165 km (65 per cent) of work has been completed by March 31. The deadline for the project was December 2018.
The sewerage system is part of Rs 3,000 crore JICA-assisted Odisha Integrated Sanitation Improvement Project (OISIP) which aimed to improve the sewerage facility in Bhubaneswar Sewerage District VI along with the sewerage system in Cuttack.
The areas located on the left of NH 16 from CRPF Square to Palasuni till Sikharchandi come under Bhubaneswar Sewerage District VI and IVRCL was assigned the contract for it.
Sources told ‘The Express’ that the company has withdrawn its resources from sites during the last six months due to its precarious financial condition and work has been stopped completely. The project could not be completed on time due to delay in land acquisition and technical changes.
Principal Secretary of Housing and Urban Development Department G Mathi Vathanan confirmed that the firm is facing insolvency.
“However, the government will convene a high-level steering committee meeting on July 23 to take a call on the future course of action,” he told ‘The Express’.
As a corrective measure though, the Insolvency Resolution Professional (IRP) of IVRCL has proposed to assign the balance construction work under the contract to L&T Limited which has also expressed willingness to execute the balance work.
Of Rs 576.79 crore project, sewer network has been completed to the tune of an estimated `320.85 crore while work of Rs 11.41 crore is under progress. The balance work of Rs 244.53 crore has been proposed to be assigned to L&T Limited.
“Though as per contract provisions, IVRCL proposed L&T to execute the work, it has not been decided whether the balance work would be given to the latter or re-tendered. It is difficult to say when the work be completed,” said an official of the Odisha Water Supply and Sewerage Board (OWSSB), which is the implementing agency.
Since balance work has to be completed for commissioning of sewerage treatment plant by September this year, officials apprehend that terminating the present contract and re-tendering will delay the project commissioning further.