Silkyara tunnel contractor locked in dispute with Indian Navy over missed deadline | India News – Times of India

 Silkyara tunnel contractor locked in dispute with Indian Navy over missed deadline | India News - Times of India

New Delhi: The private contractor involved in the construction of the partially collapsed tunnel in Uttarakhand is also embroiled in controversy for failing to complete a top-secret defense project. Indian Navy Within the deadline
Last year, the Ministry of Defense removed Navayuga Engineering Company Limited as the contractor for the construction of a base in the eastern part of the country called “Project Varsha”, after repeated delays in meeting work deadlines for the ambitious project. The project was damaged.
While Navayuga is locked in an ongoing arbitration seeking compensation after the ministry terminated the contract, it had approached the Delhi High Court last year and asked the authorities to pay the seven bank guarantees it paid after acquiring the project. had tried to prevent them from being called or cashed out. Repeated queries sent to a company spokesperson did not get a response.
The High Court’s order revealed that the agreement between Navayuga and the Navy was for the construction of an inner and outer harbor for “Project Varsha”, a top-secret facility of national and strategic importance to the Indian Navy on India’s east coast. There is a defense plan.
Due to the highly sensitive nature of the project, a confidential and limited survey was allowed at the time of tender and the firm was subsequently awarded the contract in 2017 with a deadline of 42 months to complete the project by August 18, 2021. It was history. Which was later extended till March 5, 2022.
Justifying its move to freeze project funds, the Navy highlighted before the High Court that the company has been in complete violation since 2018 and has not shown any seriousness in completing the work that was ordered by third parties. Can and has expressed serious concerns.
Nowyog, on his part, told the court that it is a well-known industrial practice that marine activities such as dredging are carried out in ‘reasonable weather’ – the non-monsoon period. For India’s east coast, the fair weather usually falls between October and April, after which the monsoon begins. Due to the delay in commencement of work – since the contract was finally awarded in October 2017, the applicant lost the entire first fair weather season, which affected the completion of the entire project within the given time frame.
He also cited the Covid-19 pandemic as the reason why the Navy extended the deadline. Besides, Nayoga prepared a 2021 report by an IIT Madras professor and other experts to show that the work could not be completed within the timeline provided in the agreement, the High Court said. Requested that they restrain the government from encashing the seven bank guarantees given by the petitioner. at the time of commencement of work.
Refuting the claim, the ministry clarified that a report was prepared by IIT Madras in 2015 based on the evidence of Project Varsha checks and the reports were submitted by two professors. But the 2021 report was prepared independently by a third professor engaged by the company and is a private document, not a report of IIT Madras as an institution which still stands by its 2015 report.
In its order, the high court had asked the ministry to give 15 days notice before taking any decision on the bank guarantee. Since then, the matter has been under arbitration.

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