GAIL ejects IL&FS from Rs 270-cr pipe laying project due to 'poor' progress

State-owned gas utility GAIL India Wednesday said it has terminated a Rs 270-crore pipe laying contract it had awarded to financially-troubled IL&FS and replaced it with another contractor. The contract was terminated "due to poor project progress driven on account of acute financial crisis," GAIL said in a statement here. GAIL had last year awarded a portion of the 2,655-km of the Pradhan Mantri Urja Ganga project to IL&FS. The project, costing Rs 12,940 crore, originates from Jagdishpur in Uttar Pradesh to Haldia in West Bengal, with branch lines to Bokaro in Jharkhand and Dhamra in Odisha. IL&FS Engineering and Construction Company, a unit of the troubled IL&FS group, had won two contracts last year to lay 160 km in the Dobhi-Durgapur stretch and 100 km in the Bokaro-Angul stretch of the project. Other contractors have the mandate for the remainder of two stretches, which are together about 850 km long. The 260-km pipeline contract to IL&FS was worth about Rs ...

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