Government Cancels PMGSY Road Contracts Worth ₹2,543.05 Lakh, Blacklists Contractor Over Delays

Government Terminates Two Major Kathua Road Projects, Blacklists Contractor for Delays and Imposes Penalties

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JAMMU, MARCH 04 : The government has terminated two major road construction contracts in Kathua, blacklisting the contractor for failing to complete the work on time.

Deputy Chief Minister Surinder Choudhary said the contracts, awarded to M/s Puran Chand and Sons, Jammu, were terminated due to repeated delays despite multiple notices and extended opportunities.

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The terminated projects include the construction of the road from Malhar to Marhoon (Package No. JK07-136, Phase X, Stage-I) and the construction and maintenance of the road from L031 Mahan to Banjar (Package No. JK07-219, Phase XII). Both projects had been entrusted to M/s Puran Chand and Sons.

Besides imposing penalties, the contractor has been blacklisted and barred from participating in future PMGSY works for one year.

An official order from the Office of the Chief Engineer PMGSY stated that the contractor failed to mobilize adequate machinery, manpower, and resources, resulting in prolonged delays. Despite review meetings, multiple notices, and assurances, progress remained unsatisfactory, affecting connectivity and public convenience in the areas concerned.

The contracts were terminated under relevant clauses of the Standard Bidding Document (SBD), with liquidated damages and penalties amounting to Rs. 146.63 lakh for one project and Rs. 217.54 lakh for the other. The Executive Engineer has been directed to recover these amounts from pending dues, security deposits, performance securities, and bank guarantees.

The Deputy Chief Minister confirmed that fresh tenders for the remaining work have been issued to ensure timely completion. He emphasized that the government prioritizes the timely and quality execution of developmental projects and warned that erring contractors could face strict action, including blacklisting, for failing to meet deadlines.

He reiterated the administration’s commitment to accountability, transparency, and accelerated development across Jammu & Kashmir. (Agency)

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