The Hindu : Tamil Nadu News : Rs.15 cr. sanctioned for contractor

Online edition of India's National Newspaper
Sunday, Aug 24, 2008
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu

Rs.15 cr. sanctioned for contractor

Staff Reporter

No more toll collection at bridge

KARUR: The State Government has granted a sum of Rs.15 crore to the concessionaire/contractor East Coast Construction and Consultants India Limited as compensation for taking over the new bridge across River Amaravathy in Karur that suffered damage in the November 2005 floods. With that the State government has also ruled out any further toll collection at bridge from the users.

The ECCI had constructed the bridge in 2001 at an estimated cost of Rs.14 crore on BOT basis and was collecting toll for over five years. When the bridge suffered damages in the November 2005 floods, the then AIADMK regime scrapped the BOT contract and abolished toll collection.

Subsequently, the DMK after coming to power in 2006, handed over the renovation work to the same ECCI which the contractor was undertaking at present. So far, the ECCI has spent a sum of Rs.3 crore on major renovation works at the bridge and some more work remained to be completed. The bridge, which was under the control of the Karur Municipality, has now been handed over to the Department of Highways to facilitate management and maintenance in the absence of any existing tie up with the original concessionaire.

The move has surprised townsmen with the Karur MLA V. Senthil Balaji roundly criticising the sanction of Rs.15 crore to the contractor. “The compensation is too much and has set a wrong precedent. They should have calculated the compensation and payment of balance properly after taking into account the reality that there has been a toll collection for five years,” Mr. Balaji told The Hindu.

It was the Highways Minister M.P. Saminathan who during his visit to the bridge on Saturday evening revealed that the State Government had granted and disbursed ECCI a sum of Rs.15 crore as compensation for scrapping the BOT agreement and for carrying out repair works. He also disclosed that there will be no more toll collection at the bridge.

The original cost of constructing the bridge was Rs.14 crore and from 2001 to 2005 the ECCI collected toll as per the BOT pact. Karur MP K.C. Palanisamy and senior officials from the Department of Highways were present during the Minister’s visit.

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu