24x7 water project contractor wins Rs4.80 cr compensation from PMC; work order reinstated

PMC has decided to pay Rs4.80 crore to Jain Irrigation and allowed the contractor to restart work on the 24x7 water supply scheme
PMC has decided to pay Rs4.80 crore to Jain Irrigation and allowed the contractor to restart work on the 24x7 water supply scheme. (AFP (PIC FOR REPRESENTATION))
PMC has decided to pay Rs4.80 crore to Jain Irrigation and allowed the contractor to restart work on the 24x7 water supply scheme. (AFP (PIC FOR REPRESENTATION))
Published on Nov 24, 2021 08:03 PM IST
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ByHTC

PUNE The Pune Municipal Corporation (PMC) has decided to pay Rs4.80 crore to a company by the name of Jain Irrigation. The PMC will also then allow Jain Irrigation to restart work the 24x7 water supply scheme. The above amount does not include taxes.

Earlier, the PMC had served a stop-work order the firm for not carrying out work in time. However, an arbitrator in the matter has ruled in favour of the contractor, Jain Irrigation.

The civic body will therefore continue the work with same firm and pay a compensation.

According to PMC standing committee chairman Hemant Rasane, two companies, L&T and Jain Irrigation have been contracted to carry out the 24x7 water project in the city.

Jain Irrigation allegedly failed to meet certain deadlines, after which the PMC acted and also did not to return a deposit.

“A former IAS officer was appointed as arbitrator and the decision went in favour of the contractor. PMC was originally asked to pay Rs56 crore. If the decision is followed as it is, PMC has to pay more than Rs63 crore to the company. Challenging the decision in the High Court would have taken time and the project will be delayed. Even by considering the existing material costs, there are chances that a new contractor would charge more. Considering all these factors, the municipal commissioner negotiated with the company and it is has been decided to continue the work with same company,” Rasane said.

The standing committee on Tuesday decided to pay the above compensation. “Now the administration will sign a fresh contract with the company and the company will start work,” Rasane added.

The 24x7 water project will ensure equal distribution of water to all residents in the city and is an ambitious project undertaken by the PMC.

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Sunday, December 05, 2021