Mumbai sea-link: MSRDC exploring fresh options

The Maharashtra State Road Development Corporation (MSRDC) is once again exploring the possibility of constructing the Rs 6,000-crore, 22.5-km sea-link connecting Sewari in the island city and Nava across the creek on build, operate and transfer (BOT) basis.

Last year, after finding huge discrepancies in the bids submitted by Ambani brothers, the state government had decided to drop the idea of implementing the project on BOT basis.

While the consortium led by Anil Ambani-controlled REL had quoted a concession period (a period after which the contractor hands back the project to the government) of just 10 years, whereas the consortium led by Mukesh Ambani-owned RIL had quoted a concession period of 75 years.

Subsequently, the Mumbai Metropolitan Regional Development Authority (MMRDA) was asked by the state government to fund the project.

But despite extending the deadline for submitting the bids for the cash contract twice, none of the major consortiums that had shown interest submitted their bids.

Now, MSRDC wants to once again call bids on BOT basis, with the MMRDA funding only the viability gap funding (VGF) part. Even the central government has now agreed to provide VGF to the tune of 20 per cent for the project. A senior state government official said this would fetch good response from the bidders.

However, to go back to the BOT model once again, MSRDC will require clearance from the Cabinet and that can happen only after elections, he added.