Bhubaneswar: The decision to scrap the contract with Panda Infra Limited to construct the Bomikhal overbridge has exposed the works department to a new challenge - to finish the project within the June deadline in case no one participates in the tender.

The state government on Monday ended its deal with Panda Infra Pvt. Ltd. as it held it responsible for the caving in of a 10-meter wide bridge slab that killed one person in September last year and the collapse of the retaining wall on May 3 that left a labourer dead.

"We have decided to cancel the contract with Panda Infra Pvt. Ltd. for the Bomikhal Bridge project. We are looking for other options to complete the work on the bridge while sticking to the June deadline. The bridge work is almost complete except for a few portions on the Bomikhal side," said chief engineer (roads) O.P. Patel.

The state government had blacklisted Panda Infra Pvt. Ltd. after the first accident in September. However, the contractor was allowed to resume work in November. The state government was criticised for showing undue favour to the contractor for vested interest.

However, a reality check done by The Telegraph on the rules and the agreement made with the contractor revealed how Panda Infra Limited got back the job even after a serious negligent act that took away the life of one person.

The comeback of the firm had much to do with the PWD Contractor's Registration Rules, 1967, that the government follows.

According to the provision for dealing with blacklisted contractors, the 1967 act is ambiguous. It states that the registration certificate of a blacklisted contractor would be automatically suspended but the firm should be allowed to complete all ongoing work unless otherwise rescinded by the competent authority on grounds of breach of conditions of agreement.

"Certain amendments have been made to the rule in intervals, but more or less, it remains the same. We make agreements with the contractors keeping the rules in mind. There is a need to have proper amendments, especially the provision of blacklisting contractors, to the act," said a senior official of the department.

However, in contrast to the statement of officials, the rules also maintain that if the competent authority - in this case it is the state government - finds any breach of agreement perpetrated by the contractor at any point of time during the execution of the project, it had the power to scrap the deal.

"The provision is a must in each of the agreement where the contract provider has an upper hand. In this case, it is the state government, who has the authority to cancel the pact at any given time providing genuine reasons. I think in case of Panda Infra Pvt. Ltd., the state was giving a second chance to ensure timely completion of the project. But the second mishap has forced the government to cancel the agreement," said a former official of the works department.