The Union Oil Ministry has terminated Punj Lloyd's contract for constructing Rajiv Gandhi Institute of Petroleum Technology (RGIPT) in Rahul Gandhi's parliamentary constituency, citing non-performance and re-tendered the Rs 435-crore project. The ministry wants to scale down the project to expeditiously complete it before the general elections scheduled next year.    

The project is delayed due to disputes with the contractor and now it will be executed in phases. The first phase will have to be completed by mid-2014 and the entire project by mid-2015, an oil ministry official said. The ministry has deputed its additional secretary and financial adviser, SC Khuntia, to directly monitor the progress of the project. UPA Chairperson Sonia Gandhi laid the foundation stone of the project in 2008.    

The contract to build 27 buildings for the institute was awarded to Punj Lloyd in June 2010 with a two-year deadline. After about 38 per cent completion, disputes arose between Punj Lloyd and State-run Engineers India (EIL), the project manager appointed by RGIPT.    

RGIPT has terminated the contract of PLL for non-performance of the contract on May 22, 2013. EIL, on the direction of RGIPT, has already published a tender for award of balance work, RGIPT president DM Reddy said.