HomeNewsBusinessEconomyAlstom cancels order bagged from MMRDA for supply of coaches for Mumbai Metro 4

Alstom cancels order bagged from MMRDA for supply of coaches for Mumbai Metro 4

MMRDA says two metro lines to start operations soon. Alstom said that cancelling the coach order for Mumbai Metro 4 will not have an impact on its ongoing and future projects.

March 04, 2022 / 21:26 IST
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Representative Image
Representative Image

French engineering major Alstom, which has acquired Bombardier Transportation, has cancelled the order received by the latter to supply coaches for the Mumbai metro project’s fourth line and its extension (Mumbai Metro-4 and 4A) due to delays in the project.

Mumbai Metropolitan Region Development Authority (MMRDA), the state agency that is responsible for the implementation of metro projects awarded the contract to supply 234 coaches or 39 trains for the Metro-4 (Wadala-Thane-Kasarwadavali) and Metro-4A (Kasarwadavali-Gaimukh) to Bombardier Transportation in March 2021, after it emerged the lowest bidder with a bid of Rs 1,198 crore. But the delays in handing over land for a car depot and other issues with the project prompted Alstom to pull out of the job.

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“Bombardier has withdrawn because the project has been going on slowly; only 5-10% of the work has been completed so far. Depot land was yet to be made available. We were telling them we are working on it but they decided to cancel it,” SVR Srinivas, Metropolitan Commissioner, MMRDA, told Moneycontrol.

In an email response to a query from Moneycontrol, Alstom said, “Following signing of Letter of Acceptance (LoA) for Rolling Stock of Mumbai Line 4 in March 2021, there have been overall challenges in progressing with project execution due to delays on various fronts, including civil work. Alstom engaged with relevant stakeholders to find a possible resolution. After exhausting all avenues, the decision has been taken not to proceed with this contract.”