KMP Expway firm may face penalty
Miffed at the slow progress of the upcoming Kundli-Manesar-Palwal (KMP) Expressway, the Haryana government has warned concessionaire company KMP Expressways Ltd of slapping the penalty clause.delhi Updated: Apr 02, 2011 01:19 IST
Miffed at the slow progress of the upcoming Kundli-Manesar-Palwal (KMP) Expressway, the Haryana government has warned concessionaire company KMP Expressways Ltd of slapping the penalty clause.
According to the concession agreement, the expressway was to be completed by July 29, 2009, after which the firm would have to pay the government weekly damages at the rate of 0.01 % of the total project cost.
Another clause entitles Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) to terminate the agreement after giving one-month notice to the company if operations do not start within 12 months from the scheduled completion date.
A decision to initiate further action against KMP Expressways Ltd will be taken by the High Powered Committee (Expressways) on April 5.
HSIIDC, which is monitoring the project, has asked the concessionaire company to also file an affidavit.
Repeated missing of deadlines has forced the government to evoke action against the firm. In a letter written on March 10, HSIIDC has asked the firm to give a commitment to complete the Manesar-Palwal stretch by April and the entire project by November this year. The company has also been asked to explain why action should not be initiated against them.