03 July,2011 07:19 AM IST | | Ravikiran Deshmukh
Government issues orders to allot Rs 4,301 crore project to Reliance-Hyundai consortium; MSRDC to pay Viability Gap Funding of Rs 1,392 crore despite 'precarious financial health'
Amid contradictory reports over the fate of the Worli-Haji Ali Sea Link (WHSL) on Saturday, the state issued orders clearing various ambiguities, including the payment of Viability Gap Funding (VGF) of Rs 1,392 crore, which the Maharashtra State Road Development Corporation (MSRDC) will now foot, and not the government.
Contrary to earlier reports that MSRDC had been asked to take over the project instead of successful bidder and WHSL contractors Reliance Sealink One Pvt. Ltd.
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(RSOPL), a consortium led by Reliance Infrastructure (RInfra), the government clarified that the 3.315-km project with eight lanes would be completed by the consortium.
The government has allowed the MSRDC to collect Rs 1,634 crore from the consortium against the cost of the Bandra-Worli Sea Link (BWSL).
The state, while issuing the orders yesterday, also refused MSRDC's demand to shoulder the VGF burden. Owing to its precarious financial health, the state entity was asking for government support.
However, it's the MSRDC that will pay the VGF amount in three equal installments to the consortium from its own funds; the government will not back the open market borrowings either.
As a consolation, the state has allowed MSRDC to recover the income from advertisements, spectators gallery fee and parking charges. The consortium will collect toll for a period of 40 years.
Bids for the project were first issued in 2008.
After the Reliance-Hyundai consortium emerged as the successful bidder, various hurdles cropped up in the way of the ambitious project, with MSRDC refusing to foot the VGF bill and the state refusing to throw open its kitty.
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Meanwhile, the consortium was dragging its feet to kickstart the project, with reports that the eight-lane project would be turned into a four-lane one.
According to a senior government official, as the financial closure period expires today, the consortium was compelled to start work, else the MSRDC would have been asked to charge a penalty of Rs 10 lakh per day.
The amount could be recovered from Rs 105 crore deposit paid by the Reliance-Hyundai consortium.
Meanwhile, the state also clarified on the Haji Ali-Nariman Point section of the Western free way project by accepting plan 4-B to complete it.
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A high power committee headed by Chief Secretary had suggested the plan 4-B, among various options to carry out the project.
The approved plan suggests that the Sea Link have a bridge connecting Haji Ali to Priyadarshani Park in Napean Sea Road, a cut tunnel at Malabar Hill and a cut and cover tunnel connecting Tambe Chowk at Chowpatty Bandstand to Marine Drive.
With this, the MSRDC can prepare a feasibility report and seek environmental clearance from the Ministry of Environment and Forest.
Proposed toll structure
>For cars and vehicles with seating capacity of 12 persons: Rs 55 for Bandra-Worli Sea Link, Rs 35 for Worli-Haji Ali, or Rs 85 for Bandra-Haji Ali.
>Mini buses and other vehicles with seating capacity up to 20 persons: Rs 85 for Bandra-Worli Sea Link, Rs 45 for Worli-Haji Ali, or Rs 125 for Bandra-Haji Ali.
>Trucks or buses: Rs 110 for Bandra-Worli Sea Link, Rs 50 for Worli-Haji Ali, or Rs 160 for Bandra- Haji Ali.
The toll rates, with the base year as 2008, will be revised every three years.
