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Anil trounces Mukesh in bidding for Mumbai sea link project

BS Reporter  |  Mumbai 

A consortium of Anil Dhirubhai Ambani Group's (ADAG's) Reliance Energy Ltd and has bagged the contract for construction of the between Sewri in Mumbai and Nava-Sheva across the creek in Navi Mumbai, defeating another consortium led by Anil's elder brother Mukesh Ambani.
Sources said the REL-combine quoted a concession period for the build-operate-transfer (BOT) project for nine years and 11 months, as against 75 years quoted by the Mukesh Ambani-controlled Sea King Infrastructure.
The first phase of the project will comprise a six-lane dual carriageway linking Nava to Sewri and the second phase, which is expected to be completed by 2018, will consist of a double-track rail link running parallel to the road link on the north side.
Government officials said the project cost had been revised to Rs 6,000 crore, with a construction period stipulated at five years. The REL consortium can charge Rs 250 for heavy vehicles and Rs 120 for cars and other light commercial vehicles, as toll charges.
The bids were opened at the Maharashtra State Road Development Corporation (MSRDC) office today. It was found that REL's bids, both technical and financial, were better than that bid by the Sea King Infrastructure, said sources close to the development.
The board of MSRDC, which is the nodal agency for the project, will meet soon to give its final approval, the sources added.
An REL spokesperson declined to comment on the development, saying the company was yet to get confirmation on this from the government.
Initially, the REL-led consortium was disqualified at the technical bid stage on the grounds that one of the members of the consortium, Hyundai, did not meet the criteria of $200-million networth in the years which had been mentioned in the bid document.
After the two consortiums short-listed for the project, L&T-Gamon Industries and IFFCO, opted out of the race, Sea King Infrastructure was set to get the contract.
However, the REL consortium challenged the disqualification in court and got a favourable verdict from the Supreme Court. The apex court granted the consortium 90 days to submit their bid that ended on December 15 last year.
The project was initially mooted in 1980 to reduce the travel time and to decongest traffic from Mumbai to Navi Mumbai.

First Published: Thu, February 21 2008. 00:00 IST