PCMC imposes over Rs 1 crore fine on L&T and Tech Mahindra for delaying smart city projects

PCMC imposes over Rs 1 crore fine on L&T and Tech Mahindra for delaying smart city projects


SENDING out a strong message to contracting firms who are not able to adhere to set deadlines, the board of directors of the Pimpri-Chinchwad Smart City Ltd has imposed a fine on L & T and Tech Mahindra for doing the alloted work at “snail’s pace.”

The matter came to light during the meeting of the board of directors of the Pimpri-Chinchwad Smart City Ltd. The meeting was held at Auto Cluster in Chinchwad. Chairman Nitin Kareer, who is the State Principal Secretary, Municipal Commissioner Rajesh Patil and other directors were present at the meeting.

Revealing the decisions taken at the meeting, Joint CEO Neelkanth Poman told this paper on Saturday that the board of directors rejected the requests made by the two firms to waive of their fine amount. “However, the board rejected their demand. The board has contended that whatever relief had to be given as per the government resolution, it had been given to them. Besides, they have given an extension to complete their works.”

Poman said there are a total of five contractors who are implementing 38 projects of the Smart City. “Of these, L & T is implementing six projects while Tech Machindra is implementing 16 projects. Both the firms have not been able to complete their projects in the alloted deadline. Their work had proceeded at snail’s pace. Therefore, L & T was fined Rs 36 lakh while Tech Manhindra was fine Rs 1.36 crore,” he said. The amount has been deducted from the bills.

Poman said both companies put forward a request to the board of directors to waive of their fine amount as the delay was due to COVID pandemic and the lockdown. “The two firms had requested that they faced manpower and material shortage due to the ongoing pandemic and the lockdown. They said migrant labourers had gone home after the lockdown and material from foreign countries was also not available due to lockdown in various countries. However, the board’s view was that they have given necessary relief under the government resolution and no more relief can be given to the two firms. The board has however given a six month extension to the two firms to complete their works, he said.

At the meeting, Poman said the directors give extension to the contractor implementing the e-classroom project in 105 civic schools. The extension has been given for three months. “The approved Rs 5.64 crore for installing IT equipment in the civic schools,” he said. the board also decided to set up separate committee for Fibre Cable Networking which will be a source of revenue for the civic body.

The board also appointed KPMGL, a private agency, to push the smart city projects. In last three years, three projects have been completed and it is expected that most projects will be completed in next three months. The agency has been given a one month extension. “Depending on the implementing of the project, further extension will decided,” said the PCMC chief. For the “India Cycles for Challenge” project, Ashish Jain has been appointed.

The board said out of the Rs 637 crore received from the central government, Rs 521 crore have been spent on the projects. “In next three months, several projects would be completed,” Patil said.

Mayor Usha Dhore, PCMC House leader Namdeo Dhake, Opposition leader Raju Misal, MNS group leader Sachin Chikhale, corporator Pramod Kute, PMPML C & M Rajendra Jagtap, Pimpri-Chinchwad Police Commissioner Krishna Prakash, who are all directors of the Pimpri-Chinchwad Smart City Ltd, were present at the meeting.

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