Lok Sabha Question No. 3808 (UNSTARRED), answered on 2018-08-09
Subject: Penalties on the Companies for Delay in Work
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: (SMT.) RATNA DE(NAG), CHANDRA PRAKASH JOSHI, RAMDAS CHANDRABHANJI TADAS, NARANBHAI KACHHADIA

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA

## UNSTARRED QUESTION NO. 3808

ANSWERED ON 09 TH  AUGUST, 2018

## PENALTIES ON THE COMPANIES FOR DELAY IN WORK

3808.   DR. RATNA DE (NAG): SHRI CHANDRA PRAKASH JOSHI: SHRI RAMDAS C. TADAS: SHRI NARANBHAI KACHHADIYA:

Will the Minister of ROAD TRANSPORT AND HIGHWAYS

## सड़क परिवहन औि िाजमार्ग मंत्री

be pleased to state:

- (a)  whether  the  National  Highways  Authority  of  India  (NHAI)  has  any  proposal  to  impose penalties on the companies who are behind their project deadline, especially in West Bengal;
- (b) if so, the details thereof along with the names of such companies; and
- (c) the steps taken/proposed to be taken by the Government for timely completion of projects?

## ANSWER

## THE MINISTER OF STATE IN THE

## MINISTRY OF ROAD TRANSPORT AND HIGHWAYS (SHRI MANSUKH L. MANDAVIYA)

- (a) & (b) Yes, Madam. The penalties on delayed completion of projects are imposed as per the provisions of Concession/Contract Agreement. Details in respect of West Bengal are enclosed as Annexure.
- (c) Steps taken for timely completion of projects are as under:-
- (i)   Continuous  persuasion  with  State  Government  is  being  made  from  all  levels  of  National Highways Authority of India (NHAI) / MoRT&H to expedite the Land Acquisition and Utility Shifting process and to clear the encroachments etc.
- (ii)  Regular review meetings are also being done with Concessionaires/ contractors to complete the balance work at the earliest.

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (A)  to  (B)  OF  LOK  SABHA UNSTARRED QUESTION NO.3808 ANSWERED ON 09 TH  AUGUST, 2018 ASKED BY DR.  RATNA  DE  (NAG),  SHRI  CHANDRA  PRAKASH  JOSHI,  SHRI  RAMDAS  C. TADAS,  SHRI  NARANBHAI  KACHHADIYA,  REGARDING  'PENALTIES  ON  THE COMPANIES FOR DELAY IN WORK'.

## Contract Agreement Details of West Bengal

|   Sr. No. | Name of Project                                                               | Name of Contractor                                                      | Appropriate Action taken against Contractor by NHAI                                                                                                                                                                                                     | Amount of penalty imposed                                                                                                                                                                                                                   |
|-----------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | 4-laning of Barasat- Krishnagar Section of NH- 34 in the State of West Bengal | Concessionaire- Barasat- Krishnagar Expressways Ltd. [M/s Madhucon Ltd] | The Concession Agreement was terminated by NHAI in 03.05.2016 due to slow progress of concessionaire.                                                                                                                                                   | Rs. 966.98 cr. has been claimed before Arbitral Tribunal upon Concessionaire due to Loss of Toll, Additional Cost for balance work and failure to achieve Milestone-II.                                                                     |
|         2 | 4-laning of Raiganj Dalkhola of NH-34                                         | M/s Raiganj Dalkhola Highways Ltd. (HCC Ltd.)                           | The Concession Agreement was terminated by NHAI in 31.03.2017 due to slow progress of concessionaire.                                                                                                                                                   | Amount of penalties imposed till date are as follows:- i) Rs. 30.80 Cr. in F.Y. 2013-14 & 2014-15. ii) Rs. 0.92 Cr. in F.Y. 2016-17 & 2017- 18. iii) Rs.0.09 Cr. in F.Y. 2016-17. iv) Rs. 1.62 Cr. in F.Y. 2017-18. v) Rs. 3.57 Cr. in F.Y. |
|         3 | Construction of Dalkhola Bypass (Length 5.5 Km) including ROB on NH-34        | M/s SPML-CISC (JV)                                                      | The project commenced on 19.08.2006. After progress of 35.685%, the project was foreclosed on 20.12.2013. Balance work awarded to M/s ABCI Infrastructures Pvt. Ltd. for which Appointed date is 11.10.2017. Schedule date of completion is April 2019. | NIL                                                                                                                                                                                                                                         |

|   Sr. No. | Name of Project                                                                                                                                                                                         | Name of Contractor      | Appropriate Action taken against Contractor by NHAI                                                                                                                                                                                                                                                                                                                    | Amount of penalty imposed   |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
|         4 | 4-laning of Kolaghat to Haldia section of NH-41                                                                                                                                                         | M/s CWHEC- HCIL (JV)    | The project was terminated by the employer on 26.04.2007 after a progress of 42.32% due to slow progress and fundamental breach of Contract. Balance work of NH-41 from Kolaghat to Haldia (NH-41) &HPL Link Road from City Centre to Khudiram Square (SH) awarded to contractor Dineshchandra R Agarwal Infracon Ltd. on Sept 2008 and project completed on Dec 2013. | Rs. 38.66 crores            |
|         5 | Construction of Service Road of both side of Belghoria Expressway from (a) Rabindra Sarani to Adarshanagar (Ch 2.835 Km to Ch 4.900 Km) (b) NH-34 to Bongaon ROB (Ch 0.000 to Ch 1.750 Km) in the state | M/s BLA Project Pvt Ltd | Contractor failed to proceed with the work and remedy the defects and have persistently or flagrantly neglected to comply the obligation under the provision of Contract, Regional Office, NHAI, Kolkata vide letter No 168 dated 22.01.2015 terminated the Contract. At the time of termination the percentage progress was 2.34%.                                    | Rs 1.95 Cr                  |

*****