Monday, June 14, 2010

State could have made Pati-BEL pay: Isaac

THIRUVANANTHAPURAM: Finance Minister T.M. Thomas Isaac has said that the State government had virtually surrendered its claim for reparations from Pati-BEL by allowing the consortium to continue work under the Kerala State Transport Project (KSTP).

Replying to questions at a press conference here on Monday, Dr. Isaac said the objections raised by the Finance Department and its advices on the subject were overlooked by the Public Works Department when renewing the contract agreement with the Pati-BEL consortium after the latter had sought compensation for time overrun owing to the alleged failure of the government to make land available for the road-widening project.

The Finance Department, he said, had taken the position that the Public Works Department should serve notice on the consortium for realisation of compensation as it had been found that Pati-BEL had not done work even on land handed over. The Finance Department wanted the Public Works Department to pay only the difference between the governments claim amount and Pati-BELs bill amount. But the Public Works Secretary informed the Finance Department that no amount would be due to the consortium then.

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