MMRDA to fine metro contractors for labour shortages to speed up project delivery

#Infrastructure News#Infrastructure#India#Maharashtra#Mumbai

Last Updated : 1st Jan, 1970

Synopsis

The Mumbai Metropolitan Region Development Authority (MMRDA) has introduced a strict penalty policy to address labour shortages and fast-track metro construction. Effective immediately, contractors will face fines of INR 1 lakh per day for workforce shortfalls between 25�50%, and INR 2 lakh per day if the deficit exceeds 50%, with no exceptions or prior notice. These penalties are in addition to existing fines for project delays and will be enforced across key metro corridors set to be commissioned by year-end, including Lines 2B, 4, 4A, and 9. MMRDA officials will conduct regular site audits and review consultant reports to monitor compliance, as the authority aims to curb persistent manpower issues that have historically hampered metro progress.

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The Mumbai Metropolitan Region Development Authority (MMRDA) has implemented a new penalty policy targeting labor shortfalls. This measure is effective immediately across all worksites, primarily impacting ongoing metro projects in Mumbai, specifically designed to ensure the timely completion of crucial infrastructure developments.

Under the new policy, contractors will face fines based on the percentage of manpower shortage observed at their sites. A deficit of 25% to 50% in required manpower will incur a penalty of INR 1 lakh per day. For a more severe shortfall exceeding 50%, the penalty will increase to INR 2 lakh per day. These fines will be applied in addition to any existing penalties for missing project deadlines, and MMRDA has stated that no prior notice or exceptions will be made when levying these new charges.

To execute this policy, MMRDA officials have been assigned to monitor ongoing metro projects, conducting regular site audits and manpower reviews to pinpoint labor shortages. They will also meticulously scrutinize reports submitted by general consultants overseeing these developments.

The penalty policy will be given priority for metro rail corridors slated for commissioning by the year-end, which include Line 2B (connecting Mandale and Chembur), Line 4 (from Kasarvadavli to Cadbury Junction), Line 4A (from Kasarvadavli to Gaimukh), and Line 9 (from Dahisar to Kashigaon). MMRDA Metropolitan Commissioner Sanjay Mukherjee noted that dedicated team leaders have already improved site progress, making this new policy a "logical next step." Labour shortage has been a persistent challenge for construction work, notably impacting metro lines 2A and 7 during the Covid-19 pandemic.

Officials also pointed out that other metro corridors, including 9, 7A, 5, and 4, continue to face manpower issues, especially during summer months when workers often return to their home towns. Contractors are now explicitly required to manage such situations to avoid penalties.

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5th Jun, 2025

MMRDA to fine metro contractors for labour shortages to speed up project delivery

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