Firms jostle for trans-harbour link contract

The list of companies interested to get the contract includes Mukesh Ambani-promoted Sea King Infrastructure Ltd, Gammon India, Larsen & Toubro and Ajit Gulabchand's Hindustan Construction Company.

Many of these were at various times interested in developing the project on their own. The final showdown was between the Sea King-IL&FS combine and the Anil-Ambani-led RELINFRA-Hyundai consortium.

But, last Wednesday, the Maharashtra government decided to scrap the award as it found both the bids unrealistic and announced that it will now develop the project on its own.

The RELINFRA-Huyndai consortium had asked for a concession period of nine years and eleven months, while the Sea King-IL&FS combine had asked for 75 years.

The Maharashtra State Road Development Corporation had reckoned that the developer would require around 44 years to recover its investments and make a decent profit on it.

Sea King sources said the company will be interested in getting the EPC contract for the project as it will help it complete the sea link at the earliest. The link is crucial for Reliance Industries as it is developing a special economic zone just across the creek.

Gammon India Managing Director Parvez Umrigar told Business Standard: "We will be a strong contender to get the EPC contract for the project with our track record in the field of bridge design and construction. And, since the project is in Mumbai where we are based, we would definitely like to go for it."

Gammon's consortium partner in earlier bids for the project, L&T, also indicated that it will be interested in getting the EPC contract. Added an HCC spokesman: "The company is always interested to get infrastructure projects as and when they come up."

Meanwhile, the cash rich Mumbai Metropolitan Regional Development Authority, which has reserves of around Rs 10,000 crore, has offered to invest Rs 2,500 crore in the project.

It has also expressed its willingness to stand guarantee for a loan of Rs 3,500 crore that the state can raise from the Japan Bank of International Cooperation at a nominal interest rate.

After rejecting the idea of developing the project on a build, operate and transfer basis, the state government wanted its cash-rich infrastructure arms like MMRDA, City and Industrial Development Corporation and Maharashtra Industrial Development Corporation to take the responsibility for the project.