02-08-2025
K-RIDE calls it ‘clear violation of conditions' after L&T terminates Bengaluru suburban rail contracts
Karnataka Rail Infrastructure Development Enterprises (K-RIDE) has strongly criticised Larsen & Toubro (L&T) for unilaterally terminating its contracts for Corridor-2 (Chikkabanavara–Bennigenahalli) and Corridor-4 (Heelalige–Rajankunte) of the Bengaluru Suburban Railway Project (BSRP), calling it a 'clear violation' of agreement conditions.
In a release issued on Saturday, K-RIDE stated that the contracts, valid till September and October 2026, respectively, do not permit unilateral termination by the contractor. 'Termination of these two contracts by L&T, received on July 31, is not expected from L&T,' it said.
K-RIDE alleged that L&T had made unreasonable demands, such as revising contract prices mid-way and converting the Engineering, Procurement, and Construction(EPC) contract into an itemised Bill of Quantities(BOQ) contract, both of which are not permitted under the current agreement. Despite addressing all reasonable concerns through the contractual mechanisms, L&T went ahead with the termination, the release said.
The K-RIDE, which is implementing the Bengaluru suburban project, noted that 84% of the work front in Corridor-2 and 17 km in Corridor-4 were already made available to L&T, but progress remained unsatisfactory. K-RIDE attributed delays to poor mobilisation, frequent changes in project managers, and slow design finalisation.
