MMRDA drops contentious Metro-4 tender clause after contractor backlash

Contractors cite ‘cartel’ concerns 

Infrastructure firms and contractors had strongly objected to the move, arguing that it would shut out experienced players, reduce competition and increase the risk of cartelisation. The Indian Express first reported on May 8 that several contractors had written to the MMRDA seeking withdrawal of the clause.

Documents from the pre-bid meeting held on May 4 show that at least six bidders raised objections.

“Their experience and knowledge of metro-specific requirements would only benefit project outcomes. Restricting them could also lead to cartel-like tendencies among remaining bidders,” one bidder said.

Another bidder said, “Introducing such a clause would significantly narrow the pool of eligible bidders, raising serious concerns about adequate competition.”

While the MMRDA did not publicly explain the rationale behind the condition, sources had indicated that officials were concerned contractors handling multiple Metro projects could struggle to maintain the pace of work.

Bidders say existing norms assess contractors’ capacity

Bidders, however, argued that existing qualification norms already assessed a contractor’s ability to take on additional work.

“Contractors with sufficient bid capacity, resources and proven execution capability are well-equipped to handle multiple projects efficiently without compromising quality or timelines,” one bidder said.

Following The Indian Express report, the MMRDA issued an addendum on June 5 deleting the condition from both tenders. The corrigendum and clarifications were uploaded to the tender portal on June 11, and the bid submission deadline was extended to June 25.

MMRDA revises tender, extends bid deadline

The tenders relate to architectural finishing and plumbing works at 10 stations on Metro Line 4, which connects Wadala, Ghatkopar, Mulund, Thane and Kasarvadavali. The works include architectural finishing, plumbing, interior facades, roofing and entry-exit structures.

Among those who objected was Jalgaon-based Bafna Realtors Private Limited, which wrote to MMRDA Metropolitan Commissioner Sanjay Mukherjee on May 7, urging the authority to withdraw or modify the condition.

Contractors had also pointed to Central Vigilance Commission guidelines, which assess a bidder’s capability on the basis of turnover, bid capacity, financial strength, past experience, manpower, machinery, ongoing commitments and performance record, arguing that these parameters were sufficient to determine eligibility.