MMRDA terminates Mumbai Monorail contracts with L&T-Scomi Engg JV

Mumbai (Urban Transport News): The Mumbai Metropolitan Region Development Authority (MMRDA) has terminated the contract with the Larsen & Toubro-Scomi Engineering consortium, the operator of the country's first Monorail network in the Mumbai on Friday. The contract was terminated due to failing to fulfill the contract obligations, despite the extension of time to Malaysian company several times.

The MMRDA has taken the Mumbai Monorail project into its own hands and has also decided to operate and maintain it. At the same time, it has also decided to seize the bank guarantee of Rs 200 crore submitted by the contractor.

MMRDA Commissioner RA Rajeev told reporters, "After expiry of the seven-time extension to the L&T-Scomi Consortium, we have finally terminated the contract with them."

He said, "L&T was given the contract of civil works and it has also fulfilled the obligations, so it can not be held guilty for the verdict. But Scomi Engineering did not fulfill the contractual obligations of supply and maintenance of rolling stock for the project, along with the contractual obligations."

He further said that according to the contract, the consortium had to supply 15 racks, however, the Scomi Engineering supplied only 10 racks. Out of these, only four are operational. L&T-Scomi consortium has secured a contract worth Rs 2,460 crore in 2009 to construct and operate a 19.5 km long monorail network on the Chembur-Wadala-Jacob Circle corridor connecting the eastern area of the city. The construction work of the first phase of the 8.9 km long connecting line was started in February 2014, when this work was to be completed in 2010.

He said, "We can not continue to extend further time. After failing to respond to our legal notice, we have decided to terminate the entire contract. Now we are in the process of issuing a fresh tender for the purchase of additional rakes."

The MMRDA had sent a show-cause notice to the operator on December 7, on which the company filed an interim reply on December 13.

After the termination of the contract with the company, the employees working in the monorail were expected to get a job, but the authority clarified that there is no flaw in the job of the employees appointed for the operation of the Mumbai monorail. They will work continue with the monorail project.