On Friday, Mumbai Metropolitan Region Development Authority (MMRDA) terminated its contract with Larsen and Toubro Limited and Scomi Engineering BHD (LTSE) which was given the responsibility of operating monorail corridor in the city.
The authority took the decision after the company failed to perform and fulfil contractual obligations and also failed to maintain the quality of Monorail services. MMRDA Commissioner R A Rajeev said that MMRDA had to take this unfortunate decision and terminate the contract that began in 2008 when the first 9-km-long phase (of the Monorail) from Chembur to Wadala was opened for public.
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He further added that this has also resulted in an inordinate delay in starting monorail phase 2 from Wadala to S G Chowk. He blamed LTSE in failing to maintain the quality of monorail services.
One of the MMRDA officials further added that an external agency will be hired soon to look after the operation and maintenance of Monorail but until then MMRDA staff will look after the work. This will help the monorail services run uninterrupted.
A month ago, in order to overcome the financial crisis, MMRDA decided to allow the advertisers to put up advertisements at monorail stations as well as the trains. The officials believe that the advertisements will generate a fair amount of revenue that will ensure the rail corporation does not shut down.
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