Mah moots dispute resolution body as more projects get aborted

Maharashtra government is planning to set up a dispute resolution authority to tackle potential rows arising from developers of projects which are in its advanced stages.
"There have been instances where disputes have risen after the tender procedure has been completed. As a result, tenders had to be re-issued. Such a process is very tricky and takes a lot of time. There is, therefore, a need to develop a dispute resolution mechanism that will tackle such issues," Chief Minister Prithviraj Chavan told a gathering at the Maha Infra Summit here.
Chavan further said he has already instructed the Chief Secretary to look into the idea to set up a separate authority to mitigate such disputes affecting project development in a time-bound manner.

This decision comes in the backdrop of various major infrastructure projects getting delayed and were forced to undergo re-tendering procedures.
It can be noted that the Rs 9,630-crore 22-km Mumbai TransHarbour Link project had to be re-tendered five times since 2004 when it was first bid out by the Maharashtra State Road Development Corporation (MSRDC).
After the Corporation's unsuccessful attempts, the project was handed over to the Mumbai Metropolitan Region Development Authority (MMRDA) for implementation.

However, the MMRDA did not receive a single bid for the project which was to be opened on August 5. The government is now considering taking up the project on cash contract basis.

Besides this, some of the other major projects such as the Worli-Haji Ali Sea Link (extension of the Bandra-Worli Sealink), Metro line II & III, Navi Mumbai airport are stuck due to various issues.
The MSRDC, the implementing authority of the over Rs 5,100-crore Worli-Haji Ali link, has decided to scrap the existing contract of developing it on Build Operate Transfer (BOT) basis, saying it has approached the government to allow it to implement the project on its own.
Reliance Infrastructure, which had won the bid, exited the project last September.
Such disputes arise mainly in the transport and power sectors, he said, adding, "this calls for a clear-cut mechanism to resolve such problems."

Meanwhile, the MMRDA is planning to approach the government to seek 'national project' status to the MTHL to ensure hurdles-free implementation of the project.
"We are looking at various options to implement the project. We are also planning to approach the government to seek national project status," the authority head UPS Madan told reporters on the sidelines of the event.