
The Punjab Water Supply and Sewerage Board has imposed a penalty of Rs 18 crore on infrastructure giant Larsen & Toubro over delays in commissioning the ambitious canal-based potable water supply project in Patiala city.
The executing agency, the Punjab Water Supply and Sewerage Board, had awarded the construction contract to L&T for Rs 342 crore.
The work formally began on October 13, 2020, with the project originally slated for completion by October 2023.
However, the deadline has been repeatedly extended — first to mid-2024, then to July 2025, and later towards the end of this year. But, complete execution may take another year.
Vikas Dhawan, Executive Engineer of the Punjab Water Supply and Sewerage Board, said the board had levied a total penalty of Rs 18 crore on L&T for repeated violation of deadlines and prolonged public inconvenience caused due to the delay.However, only Rs 3.5 crore has so far been recovered through adjustments in running bills while the remaining Rs 14.5 crore is yet to be recovered from the company. The total cost of the project stands at Rs 565.62 crore.
This includes capital expenditure of Rs 450.56 crore and a 10-year operation and maintenance component of Rs 114.96 crore.
The 115 MLD water treatment plant at Ablowal has achieved 92 per cent completion, while the clear water rising main is 96 per cent complete, with 36.4-km pipeline already laid.
However, rehabilitation and laying of the city’s internal distribution network — considered the most crucial component — continues to lag behind.
Against the targeted 230 km network, only 197.4 km of pipeline has been laid. The construction of 12 overhead storage reservoirs and one underground storage reservoir has also remained stalled.
As a result, official deadlines have undergone repeated revisions. Internal departmental projections now place partial commissioning by June 30 and full completion by September 15.
However, senior engineers associated with the project and officials of the sewerage board privately admitted that the current pace of work makes even these timelines difficult to achieve.
According to officials, partial operationalisation is now likely to be delayed till late October 2026, while stabilisation of full citywide water supply may extend into late 2027.
Meanwhile, residents continue to bear the brunt of the prolonged execution crisis. Several road stretches across Patiala remain dug up, with broken roads, exposed pipeline corridors and pending restoration work causing inconvenience to commuters and local residents.
DC reviews project
Patiala Deputy Commissioner Himanshu Aggarwal on Tuesday reviewed the progress of the project and directed officials to complete all works by September 30.
He inspected the treatment plant, reservoirs, pipelines and road restoration works. He ordered an audit of the construction quality and asked departments to work in mutual coordination.






