Contractors are facing financial crunch: CMRL.

The delay in the completion of the first phase of Chennai Metro has led to a blame game. Officials of Chennai Metro Rail Limited (CMRL) cite a financial crunch faced by at least two of its major contractors -- L&T and Gammon India.

But, the contractors say no such problems exist.

According to Metro officials, Gammon India has been facing a crunch in completing the construction of seven underground stations, while L&T is facing similar problems with the construction of a depot in Koyambedu.

The contractors under-quoted the prices in a bid to get the projects, an official of CMRL said. However, officials of L&T said there was no problem and construction was proceeding at a smooth pace.

Gammon India, in a joint venture with Russia-based Mosmetrostroy, bagged two contracts worth Rs. 1,947 crore for the design and construction of the seven stations, including Government Estate, LIC, Thousand Gemini, Teynampet, Chamiers Road and Saidapet. Last week, according to officials, Mosmetrostroy said it would not able to complete the construction of stations owing to the financial crunch. Later, after negotiations, with CMRL officials, they agreed to resume work, sources said.


THE HINDU