The National Highway Authority of India (NHAI) will decide on November 7 if the developers of 20 road projects, whose contracts were canceled as of April 2014, should be disqualified from participating in future road projects.
Senior NHAI officials said the projects were canceled because the concessionaires failed to comply with their contractual agreements and did not meet the physical milestones of completion. These companies included Larsen & Toubro (L & T) and Hindustan Construction Company (HCC), whose projects ended in March 2016 and March 2017. These companies had time until November 6 to make their representation in the termination notice. issued by NHAI.
The NHAI had uploaded the list of 20 projects on October 30, 2017 on its website. However, after the representation of the National Federation of Highway Developers (NHBF), a maximum organization of all national and state highway contractors / builders in the organized sector, the NHAI withdrew the list on Friday.
“The submitted list has projects that have ended in the past, and according to the procedures, all defaulters are given the opportunity to hear before proceeding with the termination.” NHAI will consider the representations sent by these companies at their meeting. Executive Board on November 7, after which a decision will be made if they will be excluded from bidding on future highway projects, “NHAI President Deepak Kumar told HT.
However, some of the companies, including L & T and HCC, have already challenged the NHAI’s decision. “L & T IDPL, a subsidiary of L & T, rescinded a concession contract for the 60 km stretch of the Pimpalgaon Nashik Gonde project due to force majeure events that arose from public order issues under the provisions of the agreement, after complete the project, “statement issued by the group L & T said.