Mumbai Monorail: After Seven Extensions And Long Delay, MMRDA Cancels Contract With L&T

Mumbai Monorail (Photo by Kunal Patil/Hindustan Times via Getty Images)

Mumbai Metropolitan Region Development Authority (MMRDA) took over the contract from Larsen & Toubro and Scomi Engineering for monorail network in Mumbai due to default in contractual obligations, reports Money Control.

The Rs 2,460 crore 19.5 km project which was planned to be built between Chembur to Jacob circle was supposed to be commissioned in 2010, but only 8.3 km, from Chembur to Wadala, was commissioned on 2 February 2014. As per the contract, the monorail consortium should operate and maintain the monorail till 2029.

MMRDA has also decided to take over from L&T and will operate and maintain it; Rs 200 crore bank guarantee will be taken over by MMRDA and be treated as a penalty.

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"Finally, we have terminated the contract with the L&T consortium after granting them seven extensions and to operate and maintain the network on our own in the larger public interest," said MMRDA commissioner RA Rajeev.

MMRDA has paid Rs 67 crore to the monorail consortium in 2015 and Rs 16.34 crore in 2017 to get out of cash crunch.

The technological partner Scomi was supposed to supply 15 rakes, but only ten were delivered, and only six are operational. And many need spare parts.

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