BMRCL redeems performance security given by former contractor

The BMRCL had awarded the contract to build five metro stations to Simplex Infrastructure Ltd

The BMRCL has encashed the performance security given by Simplex Infrastructure Ltd whose contract to build a 7.5-km elevated stretch of the metro line between Gottigere and Swagath Road Cross (Reach 6) under Namma Metro phase 2 was cancelled over two months ago.

Sources said the performance security encashed by Bangalore Metro Rail Corporation Limited (BMRCL) was pegged at around Rs 60 crore. “The amount doesn’t include the securities for the advances,” a source said.

The BMRCL had awarded the contract to build five metro stations along with the 7.5-km elevated line to the Kolkata-based company in September 2017. However, the slow pace of work had led the metro authorities to issue several notices to the company in 2019 and 2020.

To a question, BMRCL Managing Director Ajay Seth said the Rs 578-crore contract was terminated in January 2020 after following the due process. Seth confirmed that the corporation has encashed the security as per the clauses in the contract.

New tender for Reach 6 elevated line

Two months after terminating the contract to Simplex Infrastructure Ltd, the BMRCL has invited bids for the construction of the 7.5-km elevated line between Gottigere and Swagath Cross with a new company expected to take over the works in the next three months.

Asked about the difficulties in transferring a project in which a company has already executed 35% of the works, officials said the corporation can handle the task.

“All measurements (of works completed) have been taken. Besides, the design is given by us. The present contractor will start where the previous one had left off,” an official said.

The tender is expected to be awarded in about three months after the last date for submission of bids, currently fixed for April 5. The successful bidder will have 21 months to complete the project, which would be the first quarter of 2023.

The elevated line is part of the 21-kilometre line between Gottigere and Nagawara.

“When a contract is terminated for non-performance, we naturally encash the performance security provided by the company. We have also encashed the security given by the company against the advance payments made towards the works,” he said.

Asked whether the corporation will claim damages for delay, he said it was too soon to comment on the issue.

“A new tender has been called after which the remaining work will be executed. At this point in time, it is too early to say whether we will or not claim such damages. We will take a call at the appropriate time,” Seth said.