Metro struck again, this time by slow coach BEML

Metro struck again, this time by slow coach BEML


Monica JhaFirst Published : 09 May 2009 04:14:00 AM ISTLast Updated : 10 May 2009 08:22:59 AM IST
BANGALORE: After alignment, environment and acquisition troubles, Namma Metro is facing a new Problem now. The Public Sector Undertaking BEML Limited has not yet signed the agreement for supply of passenger rolling stock yet and has also defaulted in four key items so far.
The PSU had earlier troubled the metro with issues related to the price of passenger coaches delaying the inking of the agreement.
The BMRCL Board, at a meeting on Monday in New Delhi, decided to give BEML Limited (formerly Bharat Earth Movers Limited) time till May 13 to sign the agreement.
Earlier, the BEML could not meet the original deadline of April 2 to sign the agreement, resulting in a revision of deadline with April 22 as the new deadline.
However, the BEML failed to keep the revised deadline as well.
“The BEML has defaulted in four key items so far,” a BMRCL source told the Express.
The contract between the BMRCL and the BEML has a Penalty Clause for delay in supply of coaches.
However, the clause applies only if the BEML fails to meet the final deadline, said the source.
The timeline for the contract started from the time the BMRCL Board issued the Letter of Award of contract to the BEML on February 7.
The BEML-led consortium, which includes Rotem and Mitsubishi, was given the contract after many rounds of after many rounds of negotiations on the price issue. The consortium that was the lowest bidder for the tender agreed, in February, to reduce the prices of 150 coaches by Rs 160 Cr and to supply 150 cars (50 train sets with three cars each) at a lump-sum price of Rs 1,672.5 Cr including spares as against their original offer of Rs 1,832.5 Cr.
The contract is to design, manufacture, supply, test and commission 150 cars for the Phase I of the metro rail project. The contract also includes training of personnel for operations. The first train sets have to be ready for testing in the depot by October 2010 and for commercial operation by December 2010 or January 2011.