The Government of Haryana is planning to terminate the Kundli-Manesar-Palwal (KMP) Expressway contract of DS Construction.

The project is being developed by KMP Expressway, an SPV formed by Haryana State Industrial Infrastructure Development Corporation with DS Construction. The decision of the state government has come out as the concessionaire, DS Construction, has failed to complete the project on schedule. The contract value is Rs 2,000 crore.

The state government is also penalising concessionaire DS Construction (DSC), for every lost day due to the delay. DSC, in turn, has dragged the government to arbitration and claimed damages of over Rs 900 crore.

The much delayed project was awarded to KMP Expressway in November 2005. Work on the project commenced during 2006 and was set to be completed by July 2009. However, the concessionaire had set a fresh deadline of May 2013. As of now, the company has completed only 68 per cent of 135.65 km road and work has now virtually come to a standstill.

DSC has also run into trouble with its lenders and the Environment Pollution Control Authority (EPCA), which is assisting a committee of the Supreme Court monitoring the project.

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