Metro extension suffers setback due to GST

Tenders for construction of 6.01 km-long elevated viaducts, six stations and various civil works are scheduled to be closed on Tuesday, July 25. However, CMRL has now extended the closing date of filing of tenders to August 8 without citing the reason. 

Inquiries made with metro sources revealed that CMRL was not happy with the turnout of contractors for the work and enormity of doubts raised by the contractors, particularly about the project conditions. It is suspected that one of the major factors that could have put off contractors was upward revision in price of raw materials post GST implementation. 

Understandably, CMRL could not squarely be blamed for the delay, for it had advised contractors to temporarily quote price as per pre-GST rates in a few recent tenders to avoid confusion. Of the total 9 km from Washermanpet to Wimco Nagar, which would be implemented at a cost of Rs 3,770 crore, around 6km would be on the elevated corridor and another 2.4 km would go underground where tunneling works have been going on for a few months now. 

The project was in the news recently when cracks had emerged in a few buildings falling within the underground network for which over 30 metres of the total 2kms has been dredged. Denying that there was no shortage of contractors, CMRL director (projects) Rajeev Narayan Dwivedi said the bidders requested more time due to ongoing GST issues.