In a significant development, the Mumbai Metropolitan Region Development Authority (MMRDA) has decided to scrap the ₹14,000 crore tender process, which had earlier led to the disqualification of Larsen & Toubro (L&T). The decision comes after the Supreme Court raised concerns over the transparency of the bidding process.
Supreme Court’s Intervention & MMRDA’s Decision
The tender process involved two major infrastructure projects—a ₹6,000 crore elevated road project and an ₹8,000 crore road tunnel project connecting key locations in Mumbai. L&T had challenged its disqualification, arguing that its price bid was not even opened, leading to a higher bid being selected. The Supreme Court questioned how L&T, which was responsible for constructing Delhi’s Central Vista, was disqualified from these projects.
Impact on L&T & Future Prospects
Following the announcement, L&T’s stock saw a slight uptick, trading 0.43% higher at ₹3,671.4 per share. The company now has another opportunity to bid for these key infrastructure projects, which are expected to play a crucial role in Mumbai’s urban development.
What’s Next?
With the tender process scrapped, the Maharashtra government may consider re-tendering the projects, ensuring a fair and transparent bidding process. The Supreme Court’s intervention highlights the importance of accountability in public infrastructure projects, reinforcing the need for transparent procurement practices.
