Maharashtra Metro Rail Corp terminates contract with ILFS for Nagpur project

An employee of East-West Metro Corridor Project cleans mud from the tracks inside an underwater tunnel beneath the Ganga river in Kolkata, India, December 18, 2017. REUTERS/Rupak De Chowdhuri - RC1A4685D600

IL&FS Engineering and Construction Company on December 15 said Maharashtra Metro Rail Corporation has terminated a contract with the company for construction of various stations falling under Nagpur Metro Rail Project.

The company has received a letter from Maharashtra Metro Rail Corporation Limited informing it of the decision of the competent authority to terminate the contract for construction of seven elevated and three other metro stations of Nagpur Metro Rail Project, IL&FS Engineering and Construction Company said in a regulatory filing.

The company said the contract was terminated due to "alleged slow progress".

Commenting on financial impact, IL&FS said bank guarantees provided by it to the tune of around Rs 93 crore would be enchased by Maharashtra Metro Rail Corporation Limited.