Delayed by more than three years, the Kundli-Manesar-Palwal (KMP) Expressway project has run into another dispute. The concessionaire for the project, KMP Expressways Ltd, has invoked the arbitration clause of the concession agreement following a dispute with the Haryana government on the change of scope of the project.
While the concessionaire initially claimed Rs. 527 crore that was brought down to Rs. 199 crore for the change of the scope of work done so far, the Haryana State Industrial and Infrastructure Corporation (HSIIDC), which is the executing agency for the project, has finalised the claimed amount to Rs. 79 crore. Haryana officials said the concessionaire had submitted inflated cost estimates against the change of scope.
The HSIIDC has also raised a bill of Rs. 180 crore on account of negative change of scope due to the reduction in quantity of fly ash and granular sub-base (GSB) used in the construction.
The concessionaire has challenged the details of change of scope and invoked the arbitration clause as per dispute resolution provisions of the concession agreement.
The HSIIDC has also appointed a former engineer-in-chief of Haryana PWD, KB Lal Singal, as its nominee arbitrator. The third arbitrator is yet to be appointed.
“The concessionaire should complete the project first. The issues pertaining to change of scope will be settled thereafter,’’ said an HSIIDC official.
A KMP Expressways Ltd spokesperson said: “Arbitrators from both parties would arrive at a just figure for the change of scope claims that the Haryana government should be agreeable to pay. If the change of scope claims do not get sorted out, there could be a delay in the project.”