For the third time, no bids for Rs 9,360 cr MTHL project

Five shortlisted bidders stay away despite Central grant of viability gap funding, cite state govt apathy

The state-run Mumbai Metropolitan Region Development Authority (MMRDA) has not received a single bid for the Rs 9,360 crore Mumbai Trans Harbour Link (MTHL) project in view of state government's apathy. Today was the last day for filing technical and financial bids. MTHL  will connect South Mumbai to Navi Mumbai directly. IRB Infrastructure one of the shortlisted bidders had last week decided to withdraw from the biding citing bad experience on some other infrastructure projects in the state. Other four shortlisted bidders Cintra-Soma-Srei, Gammon-OHL Concessions-GS Engineering, GMR-L&T Ltd-Samsung, Tata Realty and Infrastructure Ltd-Autostrade-Vinci Concessions  have also gone IRB way by not filing their bids.

Notwithstanding  the Centre's grant of  the Viability Gap Funding (VGF) of Rs 1920 crore, bidders did not find the project attractive and viable. MTHL  will connect South Mumbai to Navi Mumbai directly.

MMRDA's joint project director Dilip Kawathkar told Business Standard "MMRDA has not received a single bid for the project. However, MMRDA in consultation with the state government will develop the MTHL project.''

However, a government official, who did not want to be identified, said bidders prefer to stay away from the project in view of the policy and regulatory uncertainty, hurdles in the land acquisition, opposition from political parties and various organisations in toll collection. Besides, companies were reluctant to take major risks considering the huge requirement of finances.  MMRDA may carry out project development through cash transfer or annuity basis.

Today's is the third time when the state government through its undertakings were failed to get bids for MTHL project. MTHL was tendered in 2008 when Mukesh Ambani and Anil Ambani led companies had separately submitted their tenders but they were scrapped. Subsequently, MTHL was re-tendered for the second time in 2009 but did not receive enough response.

Thereafter, the project was tendered again last year and five bidders were short listed by MMRDA.

Industry official put the onus on the government and its undertakings for indecisiveness in project implementation.

 It must be mentioned here that IRB chief Virendra  Virendra Mhaiskar last week in his letter addressed to MMRDA had said, "We deeply regret to inform you that we are unable to participate in the bidding process of the project and the reasons are beyond the boundaries of this project. Unfortunately the experience that we have had in one of the infrastructure projects in Maharashtra in the city of Kolhapur has shattered our confidence to invest in the urban infrastructure projects especially in the state of Maharashtra."

He further noted that the company's lenders were also shying away from committing their support to MTHL as the response of the state government on private investments adversely strikes at the very concept of private public partnership.