The Kanpur Metro project is a prime piece of infrastructure in Uttar Pradesh, which came into the spotlight when construction company Gulermak claimed to have ‘run away’ from the city, facing dues worth ₹80 crore over 53 subcontractors. This has triggered fury amongst local contractors as well as raised concerns regarding supervision and responsibility on big public works.
Background: Gulermak’s Role in the Kanpur Metro
Gulermak, along with Sam India Builtwell, was in charge of the underground section of the Kanpur Metro. 53 small companies have now accused Gulermak of being on a payment strike for the last 10 months. The Kanpur Metro is one of India’s fastest-working projects under the UPMRC and is considered a point of pride for the country, making this setback particularly critical for the city’s development timeline.
Unpaid Dues and Contractors’ Plight
Contractors have accused Gulermak of systematic payment delays. Metro Marble, Radiant Services, and Shreyans Infratech are just a few who are owed massive amounts in dues. From the outstanding amount, Metro Marble owes ₹3.70 crore, while Radiant owes ₹1.20 crore and Shreyans owes ₹1.70 crore. Many claim they have received 50 percent or less of what is owed to them, creating heavy financial burdens on their operations.
Political and Diplomatic Context
As one of the contractors has claimed, the payment with all deadlines has been suspended (even the agreed) after the support of Turkey to Pakistan during the protest on the diplomatic fight with India escalated at the contracting level. There are reasons that could well have contributed to Gulermak not paying the dues; also, paying the dues could have been delayed due to the growing sense of anti-Turkey sentiments in the country.
Company Officials Flee and Contractors Seek Justice
Gulermak does not appear to have been active in Kanpur for at least a couple of weeks now and is allegedly avoiding answering calls and not responding to messages, which is consistent with the avoidance strategy. Unsuccessful attempts to engage UPMC and bring their attention to the situation have yielded no results. Out of desperation and without hearing anything from the company, nine contractors appealed to the district magistrate, requesting active measures to receive the overdue payments. The situation is still trying to head in the right direction; however, receiving UPMC’s attention on this issue seems almost impossible.
UPMRC’s Responses and Future Moves
Some of the documents were clarifying that it made full payment to the contractor by the subcontractor, and after four underground stations were completed, it paid over the subcontractors to Gulermak. One of the things that the corporation still holds as a reserve is 5% of the whole value of the contract, which may be released to settle the outstanding obligations solely in this case if Gulermak submits his claim of debts to the other subcontractors.
Expanded Considerations of Policy for Indian Infrastructure Initiatives
These challenges and opportunities illustrate the complexity of risk and governance that comes with mixed international joint ventures in critical infrastructure systems such as the Kanpur Metro. It was a critical case for much more careful contracting with local procurement regulators, more contracting with locals at the lower-tier payment, and more controls on the audit-based payment process. With all these things done, India’s infrastructure industry is ready and waiting for what comes out of this, as throughout.
