The Hindu : Front Page : KSTP: Cabinet to take decision

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Thursday, Nov 30, 2006
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KSTP: Cabinet to take decision

Special Correspondent

THIRUVANANTHAPURAM: Public Works Minister T.U. Kuruvilla has said that a decision on extension of the Kerala State Transport Project (KSTP) for completion of the works under it will have to be taken at the Cabinet level.

The Minister told a news conference here on Wednesday that the Government was in favour of extending the project after charging liquidated damages on the contractors for the delay in completing it. However, the contractors had contented that the delay was on account of the delay in handing over land for widening of the roads.

Admitting that there were delays in land acquisition, Mr. Kuruvilla said that only land for 450 metres of road remained to be acquired. The contractors had, however, failed to complete the works on the stretch of land handed over to them in time.

The Minister indicated that he was in favour of the dispute over the damages and cost escalation going before a Dispute Resolution Board as provided in the agreement. This might be followed by arbitration. As there were differing views, the matter would go before the Cabinet. The Cabinet panel on KSTP would be meeting after talks on Wednesday with the contractors. The Minister said he had received no petition from the Malaysian company which had contracted part of the project regarding the suicide of its official in charge of project implementation.

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