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Union ministry reins in DMRC on contracts

Published: 09th September 2012 08:31 AM  |   Last Updated: 09th September 2012 08:31 AM   |  A+A-

The Union Urban Development Ministry has issued a directive to the state government to ensure that no contract is given to any party by the Delhi Metro Rail Corporation on the Kochi Metro Rail project before the director board of KMRL takes a final decision on it. The directive has come when the state government is yet to ratify the final draft agreement with the DMRC for want of clarity on many aspects and since the document reportedly favours only  the latter. DMRC  is the assigned consultant and executor of the project.

‘‘Yes, the government received such a directive four days ago. It is the prerogative of  the board to give approval for any contract,” maintained a key source in  the government. The Union Urban Development Ministry has reportedly interfered on the basis of information that the DMRC has begun to initiate proceedings for  sourcing firms to execute the Kochi Metro, seemingly taking it for granted that the inking of  the final agreement with KMRL is only a formality.

‘‘There are certain clauses in the draft agreement which give absolute freedom to DMRC to invite bids from contractors. That may be the reason for  the moves from its side. But the fact remains that only the KMRL board is empowered to give sanction for it,”  sources said.

Express had pointed out recently that clauses adverse to the interests of  the state are in the proposed agreement.

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