Chennai Metro work halts as Russian JV partner abandons project

The Russian partner of Gammon India in the Chennai Metro Rail Ltd (CMRL) has abandoned the project and all 60 officials of the Russian company, Mosmetrostroy, involved in the project have left abruptly, leaving the responsibility of completing the project on Gammon India.

While the reason seems to be an escalation of project cost and CMRL's refusal to address it, CMRL officials have refused to acknowledge this and insist they are clueless as to why Mosmetrostroy abandoned the project before completion.

Mosmetrostroy is reported to have asked CMRL to allow an increase in project cost considering the cost escalation and pay an additional amount, which CMRL rejected. 

Work on the tunnelling has come to a standstill, CMRL sources said, adding, ''We are completely in the dark and have no idea why they left.''

Mosmetrostroy has engaged over 70 sub-contractors who have now stopped work as the company owed them nearly Rs29 crore.

The contractors include suppliers of sand, cement and brick, bolts and steel bars who have now taken recourse to police complaints to recover their dues.

The sub-contractors had, last week, approached the Russian embassy for help to recover dues from the Russian company. Embassy officials reportedly sought a week's time, but the issue remained unresolved.

This is the second time a construction company has abandoned the Chennai Metro Rail Project. Earlier, Chennai Consolidated Consortium Ltd had abandoned the project following a disagreement with CMRL over payment.

CCCL was involved in construction of stations, including Koyambedu, CMBT, Arumbakkam, Vadapalani, Ashok Nagar, Ekkatuthangal and Alandur. In a re-tender, another private company completed the project.

However, in the present case of the Gammon-Mosmetrostroy joint venture, there is no question of re-tender as the Indian partner is still there, sources in CMRL said.

The Gammon-OJSC Mosmetrostroy joint venture was awarded two prestigious contracts for design and construction of underground stations and associated tunnels for Chennai Metro Rail Limited (CMRL), worth about Rs1,947 crore, in April 2011.

These contracts are part of the five tender packages floated by CMRL for design and construction of 19 underground stations and associated tunnels covering a total length of 18 km.

The two project contracts have a value of Rs 932.88 crore and Rs1014.42 crore.

The scope of work for both packages involve construction of seven underground stations at Govt Estate, LIC building, Thousand light, Gemini, Teynampet, Chamiers road and Saidapet along with twin bored tunnels covering a total length of over 6.4 KM (6474 metres).