The work on the 6.5-km-long Z-morh tunnel on the Srinagar-Kargil highway, which was halted in July last year after the executing agency ran into financial troubles, is likely to miss the 2020 deadline.
The agency, Infrastructure Leasing & Financial Services (IL&FS), was divested of the Zojila tunnel project contract by the central government.
The work on Z-morh tunnel commenced in May 2015 and till date only 40 percent of the work has been completed. The project, which is part of the Srinagar-Sonamargtunnelway, is a joint venture between IL&FS (ITNL) and Soma Infrastructure.
The IL&FS had engaged APCO Titan Company as a contractor for the construction of the tunnel.
“The IL&FS has failed to release the payment to APCO,” a top official told Greater Kashmir.
Sources in the IL&FS said they are likely to walk out from the Z-morh project and might hand over the work to APCO.
“Negotiations in this regard are on and we are likely to arrive at some decision in the coming two weeks,” he said.
Former minister and ex-MLA KanganMianAltaf Ahmed said during his meetings with governor Satya Pal Malik he was assured the matter will be taken up with the central government.
“But after the cancellation of the Zojila tunnel project it seems the Z-morh will meet the same fate,” MianAltaf told Greater Kashmir.