The Greater Mohali Development Authority (GMADA) has once again postponed the deadline for completing the construction of the interstate bus terminus (ISBT)-cum-commercial complex in Sector 57, to May 31.
The development was announced on Tuesday in a meeting chaired by GMADA vice-chairman Viswajeet Khanna.
The company in question, C and C Construction Limited, a Delhi-based construction company, owes GMADA a penalty of about Rs 50 crore till date for the delay.
The company was given the contract of project - ‘Mohali Junction’ - under public-private partnership mode with work beginning in April 2009.
The terminus, which was scheduled to start commissioning from 2011, is far from completion as yet.
The Greater Mohali Development Authority’s chief administrator AK Sinha said, “We had a meeting with the contractor on Tuesday where he has been given a revised deadline of completing the project.”
“We will have to look into the matter if he misses this one. Even the contract may be scrapped,” Sinha added.
Meanwhile, the contractor shared shortage of funds as the prime reason for delay in the completion of the project.
He has however assured that he would be getting the required Rs 25 crore to finish the construction work and the project would be done with by May 31, the new deadline.
The delay is costing the company a fine of Rs 40,000 per day. It has paid t he Greater Mohali Development Authority Rs 15 crore till date and is yet to pay separate amounts of Rs 35 crore as penalty and Rs 14.5 crore as one installment including interest.
The company has been asked to pay penalty for 1, 257 days, the delay till date. Meanwhile, the cost of the project, which was initially Rs 355 crore, has now been raised to Rs 500 crore.
The complex, which has been allotted a 6.6-acre land, will include a state-of-the-art AC bus terminal, a hotel, an office-cum-commercial tower and a helipad.
It will have 20 stories with the helipad on the rooftop. While the company has already signed an agreement with cinema firm Cinepolis for allotment of about 70,000 sq ft space to set up a 10-screen cineplex, talks are on with retail giant ‘Future Group’ to open a mega departmental store at the complex site.