KOCHI: The two construction sector giants involved in the Kochi Metro Project, Soma Construction and L&T, have decided to keep away from the remaining phases of the project due to huge financial losses. They have not submitted quotation for the recent tender called by the Delhi Metro Rail Corporation (DMRC) for the construction of Maharajas-Ernakulam South stretch and Kunnara Park-Petta stretch.
With the tender period expiring by September 21, Soma Constructions has decided not to associate with DMRC any further in the Kochi Metro project. Similarly, L&T is also hesitating to submit a tender due to financial constraints. The DMRC resorted to the retender works of Maharajas-South stretch after Soma Constructions backed out from the project. At present, L&T is the contractor for the Aluva-Kaloor stretch while Soma Constructions is undertaking the Kaloor- Ernakulam South stretch.
The next phase of construction will begin depending on the submission of tenders.“We have been maintaining a system of accepting tender from companies that adhere to our standards. Work will be allotted to the company which bids the lowest. Soma Constructions and L&T were selected the same way,” a DMRC official said.The construction companies claim that there has been delay in handing over the land for construction. The fine for the delay in completion has backfired. Currently, L&T is facing a fine of `20 lakh per day and Soma Construction is paying `14 lakh per day for delay in the construction. Soma Constructions claim that they have incurred a loss of `30 crore till now and the loss of L&T is estimated to be around `100 crore.DMRC officials said there was no point in blame game as the work is taking place round the clock. However, due to traffic constraints, work using heavy machines could be carried out only at night.