Three bids for Sewri sea link

IL&FS offers to construct bridge in lieu of toll rights for 40 years

The state government has received three bids for constructing the ambitious Rs 3,600 crore, eight-lane, 24 km sea link between Sewri and Nhava Seva.

It includes a proposal from IL&FS to construct the bridge at zero cost to the state government.

IL&FS offers to bear the entire cost of the project in lieu of toll rights for 40 years.

A source close to the development said, "IL&FS, owned by financial institutions and banks, seeks appointment of a committee to oversee the construction."

After the Bandra-Worli sea link project was stalled over cost escalation issues, the authorities are now trying to ensure that the Nhava Seva-Sewri trans harbour sea link does not run into such obstacles.

The state government is likely to introduce the 'French offer' clause into the contract. Under this, if IL&FS seeks funds from the government during construction, the government can invite some other private player to underbid IL&FS.

In addition, construction milestones will be in place to ensure timely completion of various stages of the project. If IL&FS fails to achieve the milestones, the state government will have the option to rescind the contract.

IL&FS, according to the source, hopes to raise long-term funds from Japanese financial institutions at low rates.

On toll rights, sources said the state government is willing to offer it only for 30 years.

Apart from IL&FS, the $20 billion French construction major Bouygues SA has also made a presentation to the Maharashtra chief minister Sushil Kumar Shinde.

The third contender is the Maharashtra State Road Development Corporation.

The project will help decongest the island portion of Mumbai city and give a fillip to the proposed international airport project in Nhava Seva.

It will also give a boost to the Navi Mumbai and Maha Mumbai special economic zones that are likely to be merged into one big economic zone.

The southern part of Navi Mumbai has 2,500 hectares of land available for housing and the trans harbour link will help develop this area.

The travel time between the SEZ and Mumbai city can be reduced to 15 minutes from the current two hours once the project is completed.

The project will also benefit the ailing Mumbai Port Trust.

Phase I of the project will comprise a 4-lane dual carriageway linking Nhava Sewri. Phase 2, which is expected to be completed by 2018, will consist of 4 more lanes and a double track rail link.

The vertical alignment of the northern sea link will be maintained at a constant height of 12 meters over the mean sea level except for the three obligatory spans at Pirpau Jetty, Central Channel and Panvel Creek.

The environmental impact assessment report for the project has been submitted to the Union ministry of environment and forests on November 3, 2003, by MSRDC.