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This is an archive article published on July 21, 2009

KMC cancels sewerage contract worth Rs 56 cr

After failing to execute a project for two years,a contractor lost the project worth Rs 56 crore as the Kolkata Municipal Corporation decided to cancel the sewerage and drainage project contract.

After failing to execute a project for two years,a contractor lost the project worth Rs 56 crore as the Kolkata Municipal Corporation (KMC) decided to cancel the sewerage and drainage project contract.

A final decision to cancel the contract was taken on Monday at the monthly meeting of the civic body.

A senior official of the drainage department of KMC said: “The contract was awarded to East Coast Constructions & Industries Limited around two years ago. The project was going on in Borough I. The progress of work was not satisfactory.”

The Asian Development Bank (ADB) had funded the project and work was being carried out under the Kolkata Environment Improvement Project (KEIP).

As per the drainage department official,the contractor was given time to execute the project by 2009. However,till April 2009,the contractor had completed work worth Rs 13 crore of the budgeted amount.

Repeated persuasion,discussion and instructions to the contractor failed to yield results. Senior civic officials,including the municipal commissioner,felt that there was a need to terminate the contract and the balance amount will go to the contractor selected after a fresh bidding.

Opposition councillor,however,demanded that the contractor be blacklisted and no further contracts be awarded to the company.

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“We want the contractor to be blacklisted so that he does not get any more projects from the KMC. The civic body will suffer a huge loss because of the contractor,” Leader of the Opposition Javed Ahmed Khan said.

Mayor Bikash Ranjan Bhattacharya,however,said,“The KMC cannot blacklist the company. However,necessary administrative steps will be taken against it.”

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