Aurangabad, Feb 12:
The parallel pipeline project contractor Subhash Project Marketing Limited (SPML) has demanded Aurangabad Municipal Corporation (AMC) to clear dues for final cancellation of the agreement. It has threatened to appeal before an arbitrator, if the money is not paid to the company, said the AMC administrator A K Pandey adding that the civic administration will seek the intervention of the state government in settling the dispute.
The AMC had shortlisted the tender of SPML to implement the 20-year-long water project launched on public-private partnership (PPP) model. The company was responsible for laying main pipelines of 2,000 mm size from Jayakwadi Dam to Nakshatrawadi, on priority. However, the works other than the main pipelines were done by the contractor. The civic body also got the water bye-laws passed from the state government and started to increase the water tax by 10 per cent every year. The decision evoked protest from the citizens. Following which, the AMC general body meeting scrapped the contract with SPML.
As per the agreement, there was a provision to appoint an arbitrator to settle the dispute (if erupted) between AMC and SPML. Later on, the arbitrator was appointed to settle the disputes and the proceedings relating to it prolonged for around three years. In the meantime, the matter of bank guarantee of the company was sub judice in the Supreme Court. The issue was resolved amicably after the state government ordered the AMC to pay Rs 29 crore to the company for the settlement. After the payment, the AMC announced that the dispute pending before the arbitrator had been settled. Accordingly, the new water supply scheme came into existence.
" Earlier, the company had demanded Rs 137 crore, but the state government intervened, and the settlement was fixed on Rs 29 crore. Now, it is demanding to release the remaining amount and also threatened to appeal before arbitrator if the money is not paid," said the municipal commissioner.