‘Unviable cost’ forces MMRDA to rethink Mumbai monorail deal The Mumbai...

    ‘Unviable cost’ forces MMRDA to rethink Mumbai monorail deal

    The Mumbai Metropolitan Region Development Authority(MMRDA), which awarded the contract to run the Mumbai monorail to IL&FS, may scrap the tender as it now feels the amount quoted by the lowest bidder is twice the estimated cost.

    While MMRDA had estimated the cost to run monorail operations for 10 years not go above Rs 1,000 crore, IL&FS, which was lowest bidder, had quoted Rs 2,000 crore. Reliance Infrastructure, which runs the Mumbai Metro One, had quoted Rs 6,408 crore.

    “The cost is higher than we expected. MMRDA now plans to renegotiate with IL&FS. If they don’t comply, we will call Delhi Metro Rail Corporation or Mumbai Rail Vikas Corporation to run the operations and do a retender,” said Satish Khandare, additional commissioner, MMRDA. Officials will also consult Chief Minister Devendra Fadnavis, who is the chairperson of MMRDA, regarding the issue.

    Info- https://realty.economictimes.