Kerala - Thiruvananthapuram   

State could have made Pati-BEL pay: Isaac

T.M. Thomas Isaac says the State had surredered its claim for reparation.

THIRUVANANTHAPURAM: Finance Minister T.M. Thomas Isaac has said that the State government had virtually surrendered its claim for reparations from Pati-BEL by allowing the consortium to continue work under the Kerala State Transport Project (KSTP).

Replying to questions at a press conference here on Monday, Dr. Isaac said the objections raised by the Finance Department and its advices on the subject were overlooked by the Public Works Department when renewing the contract agreement with the Pati-BEL consortium after the latter had sought compensation for time overrun owing to the alleged failure of the government to make land available for the road-widening project.

The Finance Department, he said, had taken the position that the Public Works Department should serve notice on the consortium for realisation of compensation as it had been found that Pati-BEL had not done work even on land handed over. The Finance Department wanted the Public Works Department to pay only the difference between the government's claim amount and Pati-BEL's bill amount. But the Public Works Secretary informed the Finance Department that no amount would be due to the consortium then.

The Finance Department then took the position that the Public Works Department need not pay the consortium. This advice was overlooked and the Public Works Department renewed its contract with the consortium, thereby surrendering the State's claim to compensation. He would not attribute any motive to the decision. The then Public Works Minister might have been under public pressure to complete the road work without any further delay, but an opportunity to seek damages from Pati-BEL was lost.

Asked about reports that he was being given additional charge of the Public Works portfolio, the Finance Minister said he would not respond to speculative reports. It was for the Chief Minister to take a call on giving temporary charge of the department to someone. He would respond to such questions only after such a decision was taken, Dr. Isaac said.

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