Published On : Tue, Oct 11th, 2022
By Nagpur Today Nagpur News

After contract of Shapoorji Pallonji cancelled, Nagpur contractors eye tender for Smart City project

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Nagpur: After the contract of M/s M/s Shapoorji Pallonji for Smart City project was cancelled by Nagpur Smart and Sustainable City Development Corporation Ltd (NSSCDCL), now the big contractors and companies in Nagpur are eying the tender for the smart city project. Curiosity is at its peak as to who will get the tender. Since the contract of Shapoorji Pallonji has been cancelled, the remaining Rs 448 crore work will now be taken up by the Smart City administration.

Notably, the NSSCDCL, while rejecting the claim of damages sought by M/s Shapoorji Pallonji, the Board of Directors decided to cancel its Rs 630 crore contract for Smart City. The decision about foreclosure of contract had approval from the Special Purpose Vehicle of Shapoorji Pallonji that was formed for Smart City work, albeit post payment of compensation of Rs 15.25 crore as against claim of Rs 448.58 crore. At the meeting, the Board of Directors approved the foreclosure of the contract agreement with M/s Shapoorji Pallonji and Co. Pvt Limited (SPCPL) saying the company failed to complete the work within an extended timeframe up to June 30, 2022.

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The contractor M/s Shapoorji Pallonji was required to construct 49.76 kms of roads, 28 bridges and culverts, 4 ESRs and allied MEP works including associated civil work. NSSCDCL granted three extensions to the company to complete the scheduled work. Till date, work for 12.36 kms road length, 1 major bridge, 9 minor bridges and 4 ESRs were only completed by the contractor up to June 30, 2022. Sometimes back, the contractor expressed his inability to complete the work within the extended time limit and on top of that they issued a notice seeking compensation of Rs 448.58 crores from NSSCDCL citing lack of clearances as to reasons for delay and non completion of the allotted work.

Now, the incomplete works are to be done. Keeping in view the past experience of the big company, it is envisaged that the smart city administration may break all the remaining works into parts and distribute them in phases and get these works done by the local contractors also.

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