Metro 6 and a 60-day crisis saga
Why the tenders for Metro 6 supplies, prepared by global companies, had to be junked and fresh tenders called for
MUMBAI: In a step that took everyone by surprise, the Mumbai Metropolitan Region Development Authority (MMRDA) on October 19, 2023, cancelled tenders for procuring rolling stocks, technical systems and other works that are vital for operating the ₹6,700-crore Metro 6 line on the Swami Samarth Nagar-kanjurmarg corridor. On the face of it, this cancellation would appear to be like any other bureaucratic impediment in a mega-infrastructure project. However, the issue was much graver, and for the next 60 days, MMRDA authorities burnt the midnight oil to prepare an entirely new tender document for the metro project, a task that normally takes three to four months.
Early last month, MMRDA called for a comprehensive tender document for Metro 6. On February 26, it held a pre-bid meeting to discuss modalities pertaining to procuring rolling stocks, signalling systems, platform screen doors and telecommunication systems among other things for the metro line. But before moving on to the present, let’s rewind to what happened over the 60 days in question.
What was missing in these tenders?
The cancellation of the tenders in October 2023 happened because MMRDA authorities found serious anomalies in the tender documents and discrepancies in the procedures. Sources said there was non-compliance of international procurement standards, failure to meet mandatory guidelines instituted by the Central Vigilance Commission and the overlooking of observations made by the Commissioner of Metro Railway Safety.
“While scrutinising tender documents approved by international banks and project management consultants (PMCS), we found that crucial observations necessitated for metro rail projects globally and even some guiding principles slated for the metro rail by the government were missing,” said an MMRDA official. “This was a major lapse.”
The documents prepared for the procurement of rolling stock and other systems allegedly had major flaws. This included a lack of clarity on the codal life (average lifespan of a machine) and details of maintenance plans of the metro rakes. It is vital to mention both—local trains, for instance, have a codal life of 25 to 30 years, which can extend up to 35 years with Indian Railways carrying out multiple periodical maintenance schedules.
“This critical factor (codal life and maintenance) was never taken into account while preparing the tender document for the metro rakes,” said a senior MMRDA official. “Project management consultants are global agencies that have a history of preparing and finalising similar documents for other metro rails across the world. But how long the metro rakes would be considered fit was not stipulated previously in the tender document. Neither was the maintenance schedule tabled.”
Details of codal life and maintenance are supposed to be prepared not just for Metro 6 but also future metro lines. When asked if the existing Metro 2A and 7 lines had well-defined documentation that was also prepared by international PMCS, MMRDA officials failed to give any clear indication. The entire 20-km route for 2A and 7 has been in operation since January 2023 and has catered to more than three crore passengers.
What happened in these 60 days?
After the tenders were cancelled, MMRDA authorities pulled up the international agencies involved in their preparation and sought an explanation. Show cause notices were issued to the consultants and MMRDA officers. “It went to the extent of a possible blacklisting of the international project management consultants, who are involved in metro and infrastructure projects globally,” said a government official.
Sources in the know said that in November, discussions took place with the top executives of the multilateral agencies who flew down from Europe to meet MMRDA officials. “They wanted to understand the reasons for the show cause notices and the threat to blacklist their agencies, since it was a question of their reputation,” said a senior MMRDA official. “We listed the shortcomings in the documentation process and laid out the lapses in the tendering process. We asked them to rework a new set of tender documents within 45 days.”sources in MMRDA said the issue was also brought to the notice of the central government. The respective governments of the PMCS and international banks backing the metro projects also got involved.
Until January, the PMCS reworked the fresh documentation, followed by a thorough scrutiny by MMRDA authorities. The tender documents had to be incorporated with essential value engineering, asset replacement, and whole-life cost-assessment clauses, which were previously lacking. Inaccuracies in contract management, maintenance, safety, and payment terms were corrected.
New tenders called for
In January, MMRDA called for fresh tenders for Metro 6 (from Swami Samarth Nagar in Andheri Lokhandwala to Vikhroli, Eastern Express Highway) to procure rolling stock, signalling and train control, telecommunications, car-shed machinery and platform screen doors.
“We reduced the total number of contracts for better management and interface among various systems,” said an MMRDA official. “We realised that because each business vertical of the metro operations is manufactured and supplied separately, the entire operation lacked coordination, with no responsibility taken by the contractors. The new tenders of Metro 6 include a provision of 15 years of comprehensive maintenance.” The new tender will ensure that global companies specialising in manufacturing metro rakes and signalling systems, and having a pool of knowledge in other technical aspects, come forward in the bidding process. MMRDA will procure 108 standard-gauge cars (18 rakes of six coaches each) for Metro 6, with the current tender valued at ₹2,064.63 crore.
The work involves design, manufacturing, supply, testing, commissioning and maintenance, for which interested bidders are required to submit bids by April 2. The elevated 15.31-km-long Metro 6 is over 60% complete and is being constructed at a cost of ₹6,716 crore, with funding through the National Development Bank. The expected deadline for completion is this December or early 2025.