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Meltdown hits DDA project: DLF says rework contract or we pull out

In 2007,real estate company DLF won a DDA contract to build India’s largest convention centre in Dwarka at a cost of over Rs 3,000 crore.

Written by Express News Service | New Delhi |
February 5, 2009 12:42:35 am

In 2007,real estate company DLF won a DDA contract to build India’s largest convention centre in Dwarka at a cost of over Rs 3,000 crore. However,with the ongoing recession,DLF is finding it difficult to meet the stringent terms and conditions of the project which had a 32-month deadline. The convention centre was to be ready before the Commonwealth Games.

According to sources,DLF has asked the DDA to “renegotiate the contract”,otherwise it may have to “pull out of the deal.”

But it is unclear if the DDA will be willing to renegotiate the contract.

“We received a letter from DLF; in fact talks have been on for over six months now. They were suppose to build this convention centre for which we gave the land,but they asked for certain terms and conditions to be relaxed. We are yet to take a decision on the matter,” a senior DDA official said.

DLF refused to divulge any details of the negotiations. “We are discussing the matter with the government,” spokesperson of the company said. “We cannot say anything about it at the moment.”

However,sources have confirmed that the realty major has already spent Rs 900 crore on purchasing 35 acre land for the project.

The convention centre would have an exhibition centre,conference halls,hotels and other commercial facilities.

As per the contract,DLF would pay penalties if the convention centre is not ready before the set deadline. Moreover,the builder is expected to bear all expenses till the project is completed.

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