MSRDC to build Mumbai Trans Harbour Link

The Rs 6,000-crore Maharashtra Trans Harbour Link (MTHL) project will now be developed by the Maharashtra State Road Development Corporation (MSRDC) by engaging contractors,and by raising a viability gap funding of Rs 2,000 crore, from itself and other state undertakings. The Rs 6,000 crore, 22-km trans-harbour link may also involve some changes as well as an escalation in cost as the state is planning to have eight lanes instead of the six decided earlier. The government had found the tenders of the Ambani brothers “unrealistic’’ and decided to cancel those of both parties.
MSRDC has indicated that there was no point re-inviting Reliance Infrastructure, as its bid became invalid. Reliance Infrastructure had quoted a concession period of nine years and eleven months. Similarly, MSRDC expressed its strong reservations to give a chance to Reliance Industries,which had emerged L2 by quoting a concession period of 75 years, against the 43 years quoted in the bid document. MSRDC, at its board meeting, claimed that awarding the contract to Reliance Industries would be "immoral" and it may attract court proceedings.
MSRDC has forwarded its report to the state government and the issue would be taken up at the next meeting of the Cabinet sub-committee on infrastructure, headed by chief minister Vilasrao Deshmukh for its consideration. The meeting may take place on June 25.MSRDC board thought it fit not to re-invite fresh bids, as it would need more time and may also lead to cost escalation,"sources said.
Earlier, cracks had surfaced in the Maharashtra government and MSRDC, over whether or not to award the sea link project to Reliance Industries. This is in the wake of Reliance Infrastructure, which was L1 by quoting the concession period of nine years and eleven months for the project,rejecting the state government's offer to extend its bid validity upto August 12.
Reliance Infrastructure's bid became invalid on June 12, and thus a section of the state government and MSRDC were pressing ahead, the awarding the project to RIL, which had quoted a concession periodof 75 years.