Government Hits Tricky in Moving Forward the Monorail Project
Posted on: 03/Jun/2014 5:17:23 PM
TamilNadu government hits upon hard to precede the monorail project. The contractors are shrink back, for the reason that the huge investments lacking instant returns.
Even though the efforts to craft the financial support prototype more general, it didn’t exert a pull on investors. But still May end was the time limit for choosing the contractor. Major hindrance for this proposal, was the cost which is approximately Rs. 16, 650 Crores.
None of the contractors wishes to invest such a big sum at a single go, said a transport department official.
Factors involved in bidding process includes, first phase wraps 20.68km amid Poonamallee and Kathipara junction costing 3,300 Crores, State government offers 30% (i.e., nearly 970 Crores) for this project, government will take the charge of maintenance for the initial 10 years.
As of now, companies like Essel & Scomi, FS Transportation Network, and Gammon & IL stays in the list of the bidding procedures. The bidding dispute starts by February 2, and by March 26, government will shortlist the companies. And finally by July 2, government ought to sign the contract. But till now, there is no clear sign on the final decision of the contract, said the official.
This kind of project will take corporations at a minimum of 30 years to mend fiscally, said Sanjeev Moholkar, chief development officer at Japan International Cooperation Agency (JICA).
