2 Indian contractors yet to complete oil tank construction

Two Indian companies that have awarded contracts in 2020 to construct 06 oil tanks at the Ceylon Petroleum Corporation’s Kolonnawa oil installation premises, are yet to complete the project, reports say.

The two companies that have been awarded the contract are Indo East Pvt Ltd. and J.K. Mukherjee.

Although they were supposed to build 06 oil tanks, only one has been built so far.

However these two companies had given a subcontract to another company named Gopal, which had violated the original Tender contract, ‘Sri Lanka Mirror’ learns.

The problematic situation resulting in work being hampered had started after the Gopal company and the Mukherjee company had sought legal redress against each other, reports say.

It is said that this Mukherjee company, which has no expertise in building such tanks, was awarded the contract over the whims of a top official of the engineering department at the oil installation and a secretary of a former minister in 2020.

Also, it is reported that the Mukherjee company has been paid well over the estimated amount even ahead of the relevant quarter, despite the non completion of the construction. The quarterly payment made in this manner had even exceeded Rs. 500 million, reports add.