MMRDA terminates contract with L&T-Scomi JV, takes over operations

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Town planning authority MMRDA Friday terminated the contract with the L&T-Scomi Engineering consortium that has been operating the country's first monorail network after the Malaysian company failed to meet contractual obligations despite getting several extensions. The Mumbai Metropolitan Region Development Authority (MMRDA) also took over the project and decided to operate and maintain it, besides deciding to en-cash the Rs 200-crore bank guarantee from the operator. "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," MMRDA commissioner RA Rajeev told reporters. The consortium could not be immediately reached for comments. Blaming Scomi primarily for the termination of the contract, Rajeev said, "L&T was the civil works contractor and had met its contractual obligations by completing the work and so cannot be blamed for our ..

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