A new clause in two tenders worth Rs 300 crore floated by the Mumbai Metropolitan Region Development Authority (MMRDA) for Metro station works has become a bone of contention between the authority and contractors. Industry players argue the clause unfairly limits competition and sidelines firms with proven experience in Metro infrastructure works.

The point of disagreement — companies already executing two or more similar Metro station projects in Mumbai are now barred from bidding for fresh station works on the upcoming Metro Line 4, which runs from Wadala to Kasarvadavli in Thane. Infrastructure firms have sounded alarm bells, calling the move “restrictive”, “arbitrary” and “against fair competition”.

MMRDA on April 27 floated two tenders for architectural finishing and plumbing works at 10 stations on Wadala–Ghatkopar–Mulund–Thane–Kasarvadavali Metro corridor, splitting the project into two packages covering five stations each. The works, estimated at a combined Rs 307.72 crore, include architectural finishing, plumbing, interior facades, roofing and entry-exit structures at select stations. The last date for submitting bids is May 19.

The tenders come months after the MMRDA scrapped a similar bidding process floated in September 2025 for finishing works at six Metro Line 4 stations — Gandhi Nagar, Naval Housing, Bhandup Mahapalika, Bhandup Metro, Shangrila and Sonapur. Five bids were submitted, but none had been evaluated, when the tender was cancelled. While the February 2026 cancellation corrigendum did not specify reasons, it stated that fresh tenders would be issued.

In revised tenders floated, clause 9.11 of both tenders state that contractors, joint ventures or consortiums already executing two or more civil, architectural finishing or pre-engineered building (PEB) packages across Mumbai Metro projects would be ineligible to participate in the fresh bids.

During the pre-bid meeting on May 4, representatives of more than 10 firms reportedly objected to the clause and were asked by MMRDA officials to formally submit their concerns. Subsequently, several contractors wrote to the authority seeking withdrawal of the condition, arguing that it unfairly excluded experienced firms with proven execution capacity.

Contractors have approached the MMRDA and senior government authorities, warning the restriction damages transparency and larger public interest. However, the MMRDA has not relented. Sources told The Express the clause was kept as is after a meeting on Thursday between additional metropolitan commissioner Ashwin Mudgal and the director (metro) B Basavaraj. An addendum on the tender has not been issued yet. MMRDA officials, including metropolitan commissioner Sanjay Mukherjee, did not respond to questions.

“The above condition is highly restrictive, arbitrary, irrational, and against the principles of fair competition and transparent public procurement,” stated a letter by Bafna Realtors Private Limited, a Jalgaon headquartered company, submitted to the metropolitan commissioner on Thursday. The Indian Express has a copy of this letter.

“The impugned clause automatically disqualifies several experienced and technically qualified contractors who are already successfully executing metro works for MMRDA, instead of evaluating bidders on technical capability, financial strength, bid capacity, available resources, and project performance,” the letter added.

As per Central Vigilance Commission guidelines (CVC), the capability of a contractor is established on the basis of its turnover, bid capacity, financial capability, past experience, plant and machinery, manpower availability, ongoing commitments, and performance records.

Warning that the clause could reduce competition and increase the risk of cartelisation, Bafna Realtors urged MMRDA to withdraw or modify the eligibility condition, failing which it said the matter would be raised before vigilance and statutory authorities.

Copies of the letter were marked to MMRDA’s chief vigilance officer, the Central Vigilance Commission, Lokayukta Maharashtra, the chief minister and deputy chief minister.