Bihar State Road Development Corporation terminates contract with two construction firms

PATNA: Bihar State Road Development Corporation (BSRDC) has decided to blacklist two Hyderabad-based construction companies on charges of breach of agreement and their failure to meet the deadline in construction of two state highways. The corporation also terminated the agreement with them and will soon re-tender the remaining work.

Giving this information, BSRDC MD and road department secretary Pratyaya Amrit said the two companies, M/s Ramky Infrastructure and M/s Sadbhav, bagged contract for construction of SH-78, a 94.2-km-long Bihta-Sarmera road, and SH-90, a 64.71-km-long Mohammadpur-Chhapra road.

Both roads were to be constructed by May 2013 and April 2014, he said, adding there deadline was also extended till 2015.

But to the dismay of BSRDC authorities, Amrit said, it was noticed that only 21km was constructed on SH-78 and 24km on SH-90 by mid-April.

"In a state where many companies are completing mega projects before the deadline, such indiscipline is intolerable. That's why the corporation decided to take action as these companies not only hurt the image of the corporation which strictly follows quality of work and time schedule but even one of them, Ramky Infrastructure, moved court also," he said.

The construction cost of SH-78 was Rs 391.76 crore and SH-90 Rs 201.82 crore.

Sources said all possible facilities were provided to them to facilitate their operation including acquisition of land and other clearance. They were also provided assistance which was not part of the contract.

"But they definitely breached the agreement and caused immense damage to the govt reputation and prolonged the public hardship," said an official.

Source: TOI