A Rs. 58-crore terminal delay

The delay in the construction of new domestic and international terminals of the Chennai airport had resulted in a cost escalation of over Rs. 58 crores, according to a reply from Airports Authority of India to (AAI) an RTI query.
AAI has admitted to the delay and said it had paid this sum to the contractors — Herve Pomerleau International (HPI) and Consolidated Construction Consortium Limited (CCCL) — who executed this project as a joint venture.
To the query, AAI responded: “Escalation cost as per agreement clause was paid to M/s. HPI-CCCL (JV) for the work of construction of both terminals for an amount of Rs. 58.50 crore. Since the delay is not because of the contractor no penalty to be imposed.”
In 2013, a government audit noted there was a loss of interest of Rs. 48 crore due to the delay in the commissioning of the new international terminal. Also, there was a loss of revenue of Rs. 37 crore due to the delay in the construction of both terminals.
The Rs. 2,300-crore Chennai airport expansion project started in October 2008 with a deadline of January 2011. But it was only two years after the deadline, in January 2013, that both terminals were inaugurated.
Read more at: http://www.thehindu.com/news/cities/chennai/aai-admits-to-delay-in-airport-project-pays-contractor-rs-58-crore/article6883488.ece

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