Navi Mumbai sea-link may get Shinde's nod

IL&FS seen front-runner for the project

The six-lane trans-harbour sea link connecting Navi Mumbai with Mumbai city (at Sewri in south Mumbai) is set to become a reality with the proposal awaiting Maharashtra chief minister Sushilkumar Shinde's nod.

According to senior government officials, the Maharashtra State Road Development Corporation (MSRDC) will be appointed as the nodal agency for the 24-km long project, which will be undertaken on a build operate and transfer (BOT) basis.

The expressions of interest will be invited by next fortnight before the 'code of conduct' for the state Assembly elections comes into force.

Infrastructure development institution Infrastructure Leasing & Financial Services (IL&FS) and MSRDC had expressed interest to construct the sea-link. IL&FS had proposed to construct the project at no cost in lieu of toll rights for 40 years.

The state government had fine-tuned the details of the project at its last meeting held on July 27.

As the nodal agency for the project, MSRDC is out of the race and will issue notices inviting expressions of interest from private consortiums.

IL&FS, among others, is expected to participate in the bidding process. The bidding will be finalised on the basis of the least concessions sought from the state.

"The least concession means, whichever group bids for the project and seeks the least number of years as toll rights and state concessions for constructing the proposed sea-link would become the first choice," a senior government official said.

Similarly, the state government has stipulated that the ceiling rate for the tolls will be decided on the basis of the wholesale price index.

Unlike what IL&FS had been seeking, the project would now have to be undertaken on a BOT basis.

The Union environment ministry is expected to give the environmental clearance for the Rs 3,600 crore project soon following a meeting held recently between the Central and state government officials.

MSRDC had submitted the environmental impact assessment report for the project to the Union government on November 3, 2003.

According to informed sources, IL&FS and other developers hope to cash in on the realty boom that is bound to follow the completion of the sea-link project.

The project is expected to reduce the travel time between the two cities to less than 30 minutes.