Ashok Dudgunti, the Commissioner of Belagavi City Corporation, has imposed a fine of Rs. 21.46 Crore on L&T Company, the entity responsible for the continuous supply of drinking water to Belagavi.
During the progress review meeting, it was observed that the physical progress of the Belagavi water supply works is only at 36.17% as of 31-08-2023 for bulk components, and 22.43% for distribution works. This progress is significantly behind the scheduled work plan and milestones outlined in the contract agreement. Furthermore, the progress achieved during July and August 2023 was extremely poor and negligible. The total project contract period is 60 months, with 39 months already elapsed, leaving only 21 months to complete all the remaining works. The progress achieved over the past 39 months accounts for only about 30.25% of the overall scope of works. The DBOT Operator has failed to achieve the milestones specified in the DBOT Contract Agreement.
According to the contract, the operator will be liable to pay liquidated damages (LD) to the employer if they fail to achieve various milestones. Therefore, liquidated damages amounting to Rs. 21,46,78,000/- are hereby imposed up to 31-08-2023, as detailed below:
a) For not achieving Milestone 5.1, 25% of the Bulk Component
b) For not achieving Milestone 5.2, 60% of the Bulk Component
c) For not achieving Milestone 6.1, -25% of the Distribution Network
The total amount for these three milestones is Rs. 21 crores, 46 lakhs, and 78 thousand only.
The LD amount of Rs. 21,46,78,000/- will be recovered from the running account bills payable to the DBOT Operator. Furthermore, the operator is directed to improve the progress during