BCC fines L&T Rs 210 mn for delayed Belagavi Water Project

18 Sep 2023 CW Team

The Belagavi City Corporation (BCC) has levied a fine of Rs 210 million against Larsen and Toubro (L&T) for a project delay associated with the establishment of a 24x7 water distribution system in Belagavi.

Addressing the media, BCC Commissioner Ashok Dudagunti disclosed that L&T had undertaken the responsibility for implementing a 24x7 water supply project in Belagavi city. The initial agreement stipulated a completion timeframe of five years. Regrettably, there has been inadequate tangible progress in adherence to the agreed terms.

Dudagunti stated, "L&T was entrusted with the project on June 15, 2020. After three years, the project's progress should have reached 60%, but it currently stands at only 35%. Consequently, a penalty of Rs 21,48,74,000 has been imposed on the company, and notifications have been dispatched to both the company and the Karnataka Urban Infrastructure Development Finance Corporation (KUIDFC)."

Additionally, he noted that a notice has also been served concerning road restoration efforts. During the installation of the distribution pipeline, the company had to excavate roads, but the quality of road restoration work has not met the established standards. In many areas, the restoration work has been subpar, prompting the BCC to conduct a separate inspection and request L&T to enhance the quality of their restoration efforts.

L&T had secured the contract for implementing the 24X7 drinking water supply scheme in 48 wards of Belagavi city, with the project valued at Rs 84 million. The project involves a comprehensive overhaul and replacement of the deteriorating pipeline infrastructure within the city. The company is also obligated to provide operational and maintenance support for a duration of 12 years.

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