GMADA set to terminate contract with company
MOHALI JUNCTION Work was to be completed in 2011, but it’s still far from over; development authority says it will take over project and wrap it up in 6 monthspunjab Updated: Dec 23, 2015 10:23 IST
Considered as one of the dream projects of deputy chief minister Sukhbir Singh Badal, Mohali Junction — touted as the region’s first air-conditioned bus terminus — has run into rough weather as Greater Mohali Area Development Authority (GMADA) is all set to terminate the contract with the private company citing inordinate delay as the reason.
A Delhi-based company, C&C Constructions, had been given the contract of the project under the public-private partnership (PPP) mode and the work had begun in April 2009 with an understanding that the project would be complete by 2011.
But looking at the inordinate delay in the project, which has missed a number of deadlines despite penalties being imposed on the company, GMADA has already started the process of termination of the contract.
“We are in the process of issuing contract termination notice to the compnay. The process would take about two months, following which we talk to the banks which have lent money to the company and then take over the project. We will make the bus stand operational in six months,” said AK Sinha chief administrator GMADA.
Going into the 2012 assembly elections with a development agenda, Shiromani Akali Dal president and deputy chief minister Sukhbir Singh Badal had mooted the project and had made a number of visit to the site. Initially, the deadline for the project was October 2011.
When contacted, general manager (commercial), C&C Constructions, CVS Sehgal, said, “We were facing certain financial constraints and are making all efforts to complete the project at the earliest. We wrote to GMADA last week and resume the construction soon. I am not aware of GMADA contemplating termination of contract.”