Chenani-Nashri Tunnel Project runs into rough weather as Leighton stops work

Nishikant Khajuria

JAMMU, Dec 4: A controversy over payment and claims has run the vital Chenani- Nashri Tunnel Project into rough weather as the Main Contractor company has stopped work on the venture for the last over fortnight.
Work on the tunnel site has been completely abandoned by M/s Leighton Contractor (India) Pvt Ltd following refusal of the Project Developer M/s IL&FS Transportation Network Limited to clear the dues and claims of the main contractor, official sources informed the Excelsior.
As there seems no end of the standoff between the two companies, sources further disclosed that the Main Developer has also started looking for an alternate contractor.
The Project Developer, M/s IL&FS Transportation Network Limited and Contractor M/s Leighton Contractor (India) Pvt Ltd are learned to have locked horns for the last three months on the issues of alleged over-billing.
Sources said that after recent flash floods and frequent strikes by labourers, the main contractor raised bills and claimed the payments from the developer company. However, the developer refused to release funds alleging that works were not executed on ground. While IL&FS squeezed the flow of payments following the controversy, the Leighton on the other hand resorted to cost cutting measures, such as reduction in manpower and executing work in single shift only instead of round the clock. The initial reducing of the job time finally led to complete stoppage of work by the contractor since mid November, sources informed.
Concerned over stoppage of work on the project, sources said that the National Highway Authority of India summoned M/s IL&FS recently. A meeting between NHAI and IL&FS representatives was held last week at New Delhi where the former was asked to ensure re-start of work as early as possible for timely completion of the project, which has May 22, 2016 deadline, sources said. The Developer informed that the negotiations with M/s Leighton were still on and a meeting in this regard was held at Dubai to resolve the issue, sources further said.
Even as the negotiations between IL&FS are still on, sources said that the Developer has also started looking for an alternate contractor in case the stalemate continues and talks fail. Jai Prakash Industries and Hindustan Constructions Corporation (HCC) are in touch with the Developer IL&FS in this connection, sources added.
Pertinent to mention here that the Chenani-Nashri Tunnel Project, costing Rs 2519 crores, is part of proposed four-laning of Jammu-Srinagar National Highway and will act as an all-weather alternative to the existing NHAI section connecting Chenani in Udhampur with Nashri in Ramban district. It will also reduce the existing road distance between the two points from 41 kms to 10.89 kms.
Started on May 23, 2012, Rs 1732 crores were spent upto April 2014 on pre-construction and construction activities on this single tube Main Tunnel, which has 9.35 meters carriageway with approach road of 1350 meters on South and 563 meters on North.
So far, around 70 percent physical progress in work on 9 km long two- lane Main Tunnel has been achieved. Heading and Benching have registered a progress of 80 percent and 67 percent, respectively while 45 percent of its Final Lining has been completed.