In a major development affecting the Bengaluru Suburban Railway Project (BSRP), Larsen & Toubro (L&T) has abruptly terminated two key contracts, a move the Karnataka Rail Infrastructure Development Company (K-RIDE) has labeled as a serious breach of agreement terms.
The contracts, covering Corridor-2 (Chikkabanavara to Benniganahalli) and Corridor-4 (Heelalige to Rajankunte), were originally scheduled for completion by September and October 2026 respectively. K-RIDE confirmed that these agreements do not authorize termination by the contractor and called L&T’s action—received on July 31, 2025—illegal and unexpected.
K-RIDE insists price revisions are outside the permitted contract framework
L&T’s decision follows demands for price revisions and a shift from an EPC to a BOQ-based contract—requests K-RIDE insists are outside the permitted contract framework. Although an “Amicable Settlement Committee” was formed to address L&T’s claims, the company proceeded with termination before a resolution could be reached.
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According to K-RIDE, Larsen and Toubro had access to 84% of Corridor-2 and 17 km of Corridor-4 but failed to demonstrate corresponding construction progress. K-RIDE criticized L&T for delays in resource mobilization, design finalization, and frequent changes in project management personnel.
K-RIDE to Resume Project Execution
In response to the sudden exit, K-RIDE is working on contingency plans to complete the remaining work in both corridors and minimize delays. Despite the setback, the agency reiterated its commitment to delivering the suburban rail infrastructure that is crucial for easing Bengaluru’s urban transit challenges.
The unexpected fallout has raised concerns over project timelines, with stakeholders now watching closely to see how K-RIDE navigates the road ahead.
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