India, July 10 -- Since the Covid-19 pandemic and related restrictions hit labour supply across industries, contractors engaged in construction of metro rail corridors in the Mumbai Metropolitan Region (MMR) have cited labour shortage as a key reason for delays running into months, sometimes years.

But the situation has undergone a sea change after the Mumbai Metropolitan Region Development Authority (MMRDA) introduced a new penalty framework in mid-June, whereby daily fines are imposed on contractors for shortage of manpower, especially at four metro rail corridors slated for operationalisation by 2025-end.

The simple rule has pushed up labour deployment at the four metro rail corridors by 17-37%. Contractors are bringing in labourers ...