Ministry of Defence cancels 25 contracts for construction of 27,400 houses

NEW DELHI: The Ministry of Defence has cancelled contracts for construction of 27,400 houses under the married accommodation project due to non-performance of the vendors, which include reputed and big builders.

"62 contracts for 59,999 dwelling units were concluded in 2010 to reputed and big builders in a hope for better deliverance. However, the work could not be progressed as desired.

Non-performance of the contractors has led to the cancellation of 25 contracts for building 26,426 houses which is 45.7 per cent of the total work," according to a Defence Ministry report.

The Ministry said it will re-tender the projects and out of the 25 contracts scrapped by it, 12 have already been re-tendered.

Directorate General of Married Accommodation Project ( DG MAP) was raised by the government under the aegis of Engineer-in-Chief to construct married accommodation for the three services, with an aim of eradicating the deficiency of married accommodation for service personnel.

The total deficiency of two lakh dwelling units is being planned to be done away with in four phases which is to be completed by the end of the decade.