Shimla, November 7
Himachal government could rescind the Rs 350-crore road construction contract awarded to a Chinese firm, Longjian Road and Bridge Company with the work practically coming to a halt with work visa for only 11 of the 200 Chinese workers being granted.

Following directives from the Centre that only those Chinese nationals having a work visa could stay on, all the 200 persons at the two sites in Himachal have been forced to return home. Even though the state government had urged the centre to grant work visas to all the 200 workers, permission has been given to only 11, including project director and engineers.

It was in June last year that road construction work began in Theog-Rohru area of Shimla district and in Una after the contract was awarded to the Chinese firm under the World Bank-funded project. “We are keen that the work is completed by the Chinese firm only but in case the present situation continues we will have no option but to rescind the contract,” said P.C. Kapoor, Principal Secretary, PWD. The final decision is likely to be taken within a month’s time.

Considering the importance of the road, connecting Theog-Rohru via Kharapatthar, which is the lifeline for the apple belt, the state had urged the centre to adopt a liberal view in granting work visas to the Chinese who were already engaged in the construction work. The matter was taken up with the centre both by the Chief Secretary as well as the Principal Secretary (PWD).

Sources revealed that the government was finding it difficult to even establish contact with the Project Director and other senior officials back in China, putting a question mark on the future of the project. “Cancelling the contract involves a lot of procedural wrangles, including seeking permission from the World Bank and preparation of new DPRs (detailed project reports) which will delay the road completion work by at least two years,” admitted a senior PWD official. Efforts are being made by the government to get the Longjian company to somehow complete the work by engaging local unskilled workforce. It is estimated that the cost of the project would go up by atleast Rs 100 crore in case fresh global tenders are invited.

It is learnt that the Chinese company is also faced with serious financial constraints following the new dictates of the Indian government in dealing with unskilled Chinese workers flocking India. Work on the project was started in June 2008 and the two roads of over 100-km length were to be completed by 2011.