This is difficult to parse since there are several interpretations of your words. However here is my effort
WOW. So many questions in your mail. Let me answer them one by one.
My work is going well, but I am not sure how much longer the work will continue, as the decision to renew the project's contract is still pending with XYZ.
Regarding PQR, things have been smoothed out. It is paying the salary though. Even if doesn't pay, I am safe as long as I have a project. Moving to another company was a bad decision, as they treat us so differently. Additionally, there are a few openings.
I have not yet talked with Amar. Vamsi left XYZ and went to the US. I am in contact with Sudharsanam here in Chennai and good time pass even in office too. - I dont understand this
Chennai is good, and I am comfortable, as I have been here for three years now.
Currently work is slow and I am doubtful about the continuance of the project. I am working on Mainframes.
That is all the news from my side.