Faced with inordinate delay in obtaining funds from Kochi Metro Rail Limited (KMRL) to complete the metro rail project’s Thykoodam extension, Delhi Metro Rail Corporation (DMRC) has been forced to shell out about ₹50 crore from its funds to pay contractors.
It has resulted in uncertainty over the commissioning of the 6-km-long Maharaja’s College-Thykoodam metro corridor by mid-August, as was scheduled.
The contractors have to be paid dues totalling ₹250 crore, accrued since February. Many of them have been going slow on the work due to this. The DMRC had no other option but to release its funds since small contractors who took up the work were finding it tough to mobilise funds to pay workers and for material, said official sources.
The DMRC has been seeking approximately ₹90 crore each month towards work executed in the 6-km-long metro corridor. But the KMRL is in a position to pay only approximately ₹25 crore since the State government has not released adequate funds.
This has considerably slowed down civil, track-laying, electrical, signalling and telecommunication work in the corridor.
Accumulation of five months’ dues is unprecedented ever since the metro work began in 2013. As of now, 95% of work on the stretch has been completed. Finishing work has been hanging fire since many contractors have been unable to purchase items from small suppliers without paying advance.
Safety certificate
It could go up to the last week of August or even later to complete the work required to obtain the safety certificate from the Commissioner for Metro Rail Safety (CMRS), provided requisite funds are handed over. The commissioning of the stretch might be delayed by another month. Track-laying will be completed in 10 days, while contractors may take a few more weeks to complete the rest of the work.
Credibility
As per DMRC norms, contractors are paid 80% of the dues within two days of their work getting over. The remaining 20% is given in less than a week’s time. “We had to shell out money from our funds to ensure that contractors continue to repose faith in us. The credibility is one reason why more firms respond to our work at competitive rates,” said DMRC officials. The stalemate over releasing funds has also delayed the metro’s 1-km-long Thykoodam-Pettah extension.
Responding to the issue, KMRL sources said the work up to Thykoodam was expected to be completed by August 31.
“We have begun clearing the dues, based on funds being released by the State government,” they said.