MMRDA to levy daily fines on contractors for labour shortage
Mumbai: With four metro rail projects scheduled to be commissioned by the end of 2025, the Mumbai Metropolitan Region Development Authority (MMRDA) on Wednesday introduced a new penalty policy, whereby contractors will be fined ₹1-2 lakh per day for shortage of manpower at worksites.
'We have appointed dedicated team leaders for each metro package, which has made a measurable difference in site progress. This new policy is the next logical step,' said Sanjay Mukherjee, metropolitan commissioner, MMRDA.
'We have observed that currently, most infrastructure and metro rail projects have 40-60% of the sanctioned labour force working. So we have framed this penalty policy,' an MMRDA official told Hindustan Times.
Effective immediately, the new policy would be applicable for all MMRDA worksites, though priority would be given to Metro rail corridors, especially lines 9, 4, 4A and 2B which are slated to be commissioned by year-end.
A 25-50% shortfall in manpower will attract a penalty of ₹1 lakh per day while a shortfall above 50% will attract ₹2 lakh per day as penalty, an MMRDA official told Hindustan Times. 'No prior notice or exceptions would be made and delivery timelines would be non-negotiable,' the official said. Fines for shortage of manpower would be levied in addition to fines for missed deadlines, the official clarified.
All ongoing metro projects have been assigned to senior officials who will be responsible for monitoring them and ensuring their timely completion, said sources in the planning authority. Designated officials will conduct periodic site audits and manpower reviews to identify any labour shortfall, besides scrutinising reports submitted by general consultants overseeing the projects, they said.
Labour shortage was a major problem during the Covid-19 pandemic, which affected construction work for the metro 2A and metro 7 corridors, said MMRDA officials.
'Recently, there was a shortage of workers for Metro 2B, for which fines were levied. Metro corridors 9, 7A, 5 and 4 too have labour shortage problems, especially during the summer when workers return to their hometowns. Contractors will have to find ways to manage such situations,' said a senior MMRDA official.
But contractors were sceptical about the new policy.
'With infrastructure works including metro rail corridors being built across the country, there is no doubt that there is a shortage of workers in the market,' a contractor with several projects in the Mumbai metropolitan region told Hindustan Times. 'Besides, workers go home during the festival seasons, which further delays work. These factors need to be considered rather than simply levying fines.'
The MMRDA has, in the past, levied penalties worth ₹1.29 crore on contractors for delays in civil works, roofing and structural works for the metro 2B corridor. In 2024, penalties worth ₹2.75 crore were levied for leakages in metro projects, missed deadlines and accidents on site.
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