Skybus is a suspended railway solution for urban transit, developed by Konkan Railway Corporation (which built and operates the 700km+ Konkan Railway from Mumbai to Mangalore through Goa). Due to the technically challenging nature of the Konkan Railway, the company has gained a reputation for its engineering capabilities and project-management skills. Incidentally, it is also building the most challenging section of one of the toughest railway lines being built in the world - the Kashmir railway line. The section it is building is about 100kms long, 90kms of which is either in a tunnel or on a bridge!
Anyway, enough introduction to Konkan railway. The skybus involves a suspended car running underneath a regular bogie (not a monorail). The bogie runs either in an open ribcage structure placed on pillars or a closed box structure, depending on the user's needs.
The following is the official website of the project and includes pictures of the test track as well a video of a test run.
http://www.sky-bus-metro.com/
Picture gallery
http://www.sky-bus-metro.com/html/skbg_picg.html
Video of the test run
http://www.sky-bus-metro.com/download/first_trial_run.AVI
The Mumbai project was approved in principle, but got stuck after that. There is a 1.6kms test track already operational in Goa. A full-fledged line was almost approved in Goa, but there has been a recent change in Government there and hence there is some uncertainty about continued support for the project (since it did not complete the approval process before the change of Govt). It was reported a couple of days ago that the city of Pune has approved a line. But it is unclear whether it is in-principle approval or final approval (with the public hearing process completed and funding taken care of).
It is unclear whether this technology will be adopted or not. The key issue is that Konkan Railway does not have funds on its own and depends on Government funding. The Government is not unequivocally committed to the project. Expressions of support are often made but till some Govt. takes the plunge and commits itself fully to the project, there will always be a chicken and egg situation. Nobody wants to take the risk of approving an untested technology. And it will remain untested till somebody decides to take a chance and approve at least a short line.