New Delhi, The Delhi government is likely to hold a Cabinet meeting on Tuesday to discuss arbitration-related issues in the Barapullah Phase-3 elevated road project, sources said on Monday.
“One of the biggest matters was related to the Barapullah Phase-3 project, which is likely to be discussed in the Cabinet,” the source added.
According to officials, the original motive behind arbitration clauses was to fast-track any disputes instead of litigation, but in most cases that went to arbitration, the government incurred heavy losses.
“In the Barapullah Phase-3 project, the government lost Rs 300 crore because the PWD did not appeal against the arbitration order, and the private company benefited,” Verma said.
Last year, Lt Governor V.K. Saxena had also stated that for the Barapullah Phase-3 project, compared to the tender amount of Rs 964 crore, the government would end up paying Rs 1,326.3 crore.
The project has been facing several delays. Currently, tree-felling permission for the project is awaited, after which the work is likely to be completed in six months, PWD officials said.
PWD has been dealing with several legal matters in the past few years, mostly arising from delays in projects as construction costs shoot up beyond the initial estimated cost, putting a liability on the government.
