Business Standard

Gammon not barred from Gurgaon Metro

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Mihir MishraNeeraj Thakur New Delhi

Even after Gammon India has been held responsible for more than one mishap on Delhi’s Metro Rail construction, the company has been allowed to bid for the proposed Gurgaon metro, a private-consortium funded project.

But winning the bid will not be easy for the company. “We have allowed all the companies to bid for our project and so can Gammon,” said Sanjiv Rai, managing director and chief executive officer, Itnl Enso Rail Systems Ltd (IERS), which is building the Gurgaon metro project.

When asked whether blacklisting by Delhi Metro Rail Corporation will act as a deterrent for Gammon India, Rai said: “Perhaps it will affect their chances of getting the project.”

 

Property developers DLF are a major stakeholder in the project, and an official said they’d keep in mind DMRC’s decision on Gammon.

DMRC had sent a showcause notice to Gammon asking why the company should not be banned after an accident in the Zamrudpur area of south Delhi. An under-construction stretch fell, killing six people on July 12. Gammon has not yet replied.

DMRC Managing Director E Sreedharan said it was not practical to ban the company from existing projects, as that could mean a lot of delay. Gammon is working on five major metro projects worth Rs 300 crore, of which about 70 per cent of the work has been completed. And there are very few contractors with the required expertise.

Bidding for the Gurgaon metro started in August and the process will take till October. The project is set to begin by January 2010 and the deadline for completion is mid-2012.

The Gurgaon metro will cost around Rs 1,000 crore and is a privately financed metro rail project in partnership with infrastructure financing company IL&FS, and DLF. DLF will hold 26 per cent in the project and the rest will be held by IL&FS. A special purpose vehicle would raise Rs 700 crore within the next six months.

The metro route, having six stations, would connect with the Delhi metro station at Sikandarpur and would act as a feeder to the Central Secretariat-Gurgaon line of DMRC.

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First Published: Aug 18 2009 | 1:19 AM IST

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