Termination notice to NH 415 construction firms for failing to meet terms

[ Amar Sangno ]

ITANAGAR, 22 Oct: In a major setback to the construction of the ambitious National Highway (NH) 415, the public works department (highway) on 17 October issued termination notice to the executing agencies for the NH 415 Package B – Woodhill-Shivam and TK Engineering Consortium Pvt Ltd – for failing to achieve the contract agreement terms.

The Arunachal Times has learnt that the PWD highway department allowed the contractors to “make a representation against issuance of the termination notice and expiry of the notice, the termination notice would be issued.”

It is learnt that the department had already issued cure period notices on 24 June, stating that the contractors had defaulted on several grounds listed under Clause 23 1 (i) of the contract agreement and “specifically failed to achieve 2nd milestones by 25 September, 2023 and 3rd milestone (70% of work progress) was to be achieved by on 24 June, 2024.”

The department had reminded the contractors by issuing another cure period notice on 26 August, 2024, asking the contractors to cure default by 60 days, “failing would initiate termination of contract agreement as per Clause 23.1 (i)” would be initiated.

The PWD (highway) further claimed that despite repeated cure period notice issued to the contractors, the physical progress has merely progressed by 2.4% in the last three months, “which is abysmally low.”

It claimed that “in May, the physical progress was 0.30%, and 0.40% in June and 0.91 percent in 24 July. In August only 1.57 percent and on 24 September 0.21 percent physical progress was made on the ground.”  It also reiterated that, besides slow physical progress, no concrete action in additional mobilization of resources at site was observed.

It is reported that the contractors had made submission for extension of time in their meeting with the PWD on 10-11 October 2024; however, the department denied extension of time, stating that “the ground made by the contractor for admissibility of extension does not hold ground.”

The contractors attributed lack of hindrance-free land as one of the reasons for the slow physical progress of the NH 415 works. However, the department official concerned denied the allegation, stating that “87 per cent scope of construction zone was made available for the contractors. In spite of that, the contractor failed to achieve milestones subsequently.”

It is reported that slow progress and repeated failings to achieve milestones by the Package B contractors have caught the attention of the ministry of the union road, transport and highways (MoRTH). Chief Minister Pema Khandu had a review meeting on the national highway projects with union MoRTH Minister Nitin Gadkari on Sunday in New Delhi.

The infamous NH 415 Package B covers the distance between Papu Nallah to Nirjuli and is 11 kilometres long, including a 3.950-kilometre-long two-lane flyover from Benjamin Hotel in Papu Nallah to Kangkarnallah in Naharlagun.

The work on Package B started on 18 December 2021, after the work was awarded to Odisha-based construction company Woodhill-Shivam (JV), which later sublet it to TK Engineering Consortium Pvt Ltd, Naharlagun (49% approved sub-contractor).

The total cost of the project is Rs 426.88 crores. However, the contract agreement amount is Rs 341 crores.

On the other hand, Package C, which was awarded to M/s ARSS, another Odisha-based company, and later sublet to Itanagar-based construction firm TTC Infra India Ltd, completed the project recently.

Other than for a few wayside amenities, the entire stretch of Package C has reportedly been officially completed.

The project has been divided into three packages: Package A [from Chandranagar to Papu Nallah); Package B (from the Yupia trijunction in Papu Nallah to the Nirjuli Catholic church); and Package C (from Nirjuli to Banderdewa).

Reportedly, Odisha-based construction companies had quoted dismally low projects’ cost, which may cost both the sub-contractors. For Package B, it quoted Rs 341 crores from the Rs 426.88 crores. Similarly, for Package C, the agreement amount is Rs 301 crores from the tender-floated project cost of Rs 376.27 crores.

The 59-km-long NH 415, which starts from Gohpur in Assam, passes through the heart of the Itanagar Capital Region and ends in Banderdewa, and has been a dream project of successive governments. The project includes 15 kilometres in Assam and 42 kilometres in Arunachal Pradesh.