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Company building Jammu-Akhnoor road put in negative list for poor performance


National Highways & Infrastructure Development Corporation Limited has put M/s Tarmat Ltd., (“EPC Contractor”) in negative list of Authority for failing to meet the agreed targets and poor progress of work on Jammu-Akhnoor Road project.

“In view of non-professional attitude of the EPC Contractor towards its obligations as per the provisions of the Contract Agreement and failure to meet the agreed targets and continued painful slow progress of work, NHIDCL is hereby placing M/s Tarmat Ltd., in the ‘Negative List’ of the Authority for a period of 01 (one) year from the date of issuance of this order or till it achieves the Milestone-III, whichever is earlier”, an order issued by the Corporation stated.

Divisional Commissioner Jammu, Dr Raghav Langer, who is closely monitoring the pace of work on the project, has warned the contractor company of further action if it fails to achieve the desired results. He said that as per the Directions of office of the Lieutenant Governor all the development projects need to be expedited and lackadaisical approach will not be tolerated.

An order issued in this regard stated that the M/s Tarmat Ltd Signed an EPC Agreement on 07.06.2019 for the work of “Up-gradation to 4-lane with paved Shoulder of Jammu-Akhnoor Road section of NH-144A from Ganesh Vihar (Km 6.000) to Khati Chowk (Km 26.350) of 20.350 Km length in the UT of Jammu & Kashmir to be executed on EPC basis (Package-Ill)” at the contract price of Rs.193.99Cr., with construction period of 24 months commencing from the Appointed Date i.e.12.07.2019 on the terms, conditions and covenants contained in the Contract Agreement which are in force and remain effective.

Authority, in fulfilment of its obligations has handed over the required stretches of the Project Highway to the EPC Contractor as per the essential Terms and Conditions of the Contract Agreement, the EPC Contractor was obliged to undertake the Survey, Investigation, Design, Engineering, Procurement, Construction and Maintenance of the Project and observe, fulfill and comply with and perform its obligations set out under this Contract Agreement and moreover to follow the Contract Agreement and the obligations stipulated therein with full adherence, diligence and sincerity.

The date of achieving the Milestones of the Project as per Contract Agreement (Schedule-J) are 23.03.2020 (MS-I i.e. 10%), 22.09.2020 (MS-II, i.e. 35%), 23.03.2021 (MS-Ill, i.e.70%) and 11.07.2021 (Scheduled Completion Date, i.e. 100%). However, EPC Contractor in complete disregard to the contractual stipulations has achieved only 30.73% financial progress as on 27.07.2021 and has failed to achieve the Scheduled Completion due to the entire reasons, defaults and breaches which are solely attributable to the EPC Contractor.

The EPC Contractor has failed in mobilizing the adequate resources, Manpower, Materials, Machinery and Plant & Equipment etc. to meet the desired progress as per Milestones fixed as per Schedule-J of Contract Agreement. The EPC contractor has failed to maintain the quality of work in accordance with prescribed standards/ specifications.

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