MSRDC to penalise Reliance Astaldi for delay in sea link project

13 Sep 2021 CW Team

The Maharashtra State Road Development Corporation (MSRDC), disappointed with the reply of Reliance Astaldi JV over the causes for the delay in the Versova Bandra Sea Link Project, has decided to impose a penalty, which could be as high as Rs 3.5 crore per day, on the contractor for its failure to adhere to the project timeline.

MSRDC had issued a show cause notice to the contractor asking for an explanation for the delay in work. The 17.7-km long Bandra-Versova Sea Link project is being constructed by Reliance Astaldi. The contract was given in June 2019 and was to be completed by 2025.

Reliance Astaldi was to achieve 5% of the physical and financial progress by August 31, 2021, as per the terms of the contract. But, MSRDC claimed that the contractor attained only 0.62% of the physical progress and 2.05% of the financial progress despite getting paid Rs 203.26 crore as mobilisation advance.

The corporation claimed that it has already awarded a 250 days extension to the firm due to a change in the location of the casting yard and another extension of 184 days because of the pandemic.

MSRDC officials told the media that the project cost is Rs 7,000 crore, and the fine could be Rs 3.5 crore per day. Sachin Niphade, Deputy Engineer, MSRDC, who is directly supervising the work, told the media that they issued the notice since the work is not happening on time.

Shashikant Sontakke, Chief Engineer, MSRDC, told the media that the contractor might be having reasons for not doing the work. They have issued a notice for not achieving the work, and they will have to pay a penalty.

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Also read: Expedite work on sea-link projects: Uddhav Thackeray

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