MMRDA ends LTSE’s Mono contract, takes over operations

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By Accommodation Times Bureau


The Mumbai Metropolitan Region Development Authority (MMRDA), on Friday, terminated the contract which was entered into with LTSE – the joint venture by Larsen & Toubro Ltd. and SCOMI Engineering BHD (LTSE) – for their failure to perform and fulfil contractual obligations.

Rajeev, Metropolitan Commissioner, MMRDA said, “This was one unfortunate decision MMRDA had to take and terminate the contract entered into in the year 2008 when the first 9-km long phase from Chembur to Wadala was thrown open to the public.”

“MMRDA also gave them a long rope to enable them to recover from the situation. However, LTSE failed to supply the Rolling Stock Trains (RST), failed to Operate and Maintain the system on the entire corridor and failed to rectify defects as per the contractual clauses. This also resulted in inordinately delaying starting of Phase-2 of the Monorail from Wadala to Sant Gadge Maharaj Chowk. Also, LTSE failed to maintain the quality of Monorail services”, he added.

MMRDA, as provided in the contract, will encash the Bank Guarantee given by LTSE available with MMRDA amounting to approximately Rs 200 crores.

All decisions are taken after the contractor failed to respond to the legal notice issued by MMRDA.

MMRDA further clarifies – for the benefit of present Indian staff – that the present Indian staff of LTSE working for O&M activities of Monorail will be hired through an external agency. The MMRDA staff will hereafter lead various heads of the O&M activities.

The Monorail service will continue to run as per the schedule.


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