Anil Ambani-led Reliance Infrastructure (R-Infra) says it will continue with its proposed 7.2-km sea link between Worli and Haji Ali in Mumbai, even as the Maharashtra government plans to explore a coastal road instead, as it would be much cheaper.
“The company is going ahead as per the provisions of the concessional agreement. The agreement has been executed between the Maharashtra State Road Development Corporation (MSRDC) and the special purpose vehicle floated by R-Infra — Reliance Sea Link One Pvt Ltd. This is a contractual agreement binding both the government and the company for their respective responsibilities and obligations,” a company spokesperson said.
MSRDC, a nodal agency for the project, is currently scrutinising the financing documents submitted by R-Infra for the takeover of the existing Bandra-Worli sea link and the construction of the Worli-Haji Ali project.
The state government has sought an approval from the Ministry of Environment and Forests (MoEF) on its proposal for the coastal road. The government is exploring the option, especially in the wake of a change in the coastal zone regulation (CRZ) notification since this January.
A senior minister, who did not want to be quoted, told Business Standard: “The government is considering construction of a coastal road instead of a sea link. The CRZ norms envisage construction of coastal roads to be built on stilts if there are mangroves. Chief Minister Prithviraj Chavan has emphasised the need for such a road which will cost around Rs 500 crore.
However, the Cabinet sub-committee chaired by the chief minister will have to take a final call in this regard.”
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The Rs 5,100-crore project was awarded by MSRDC in Feburary 2010. Of the total project cost, Rs 1,634 crore is for one-time upfront payments to the state government to take over the existing Bandra-Worli sea link and construct the 7.2-km new link. According to the concession agreement, R-Infra will have to build the new stretch in 42 months.
The minister admitted that so far R-Infra is pursuing the development of Worli Haji Ali sea link project.
The minister also informed that RInfra had considered the original scope including the construction of the sea link from Worli to Haji Ali in accordance with the design submitted during the bid. MSRDC has so far confirmed no change in the original scope of the project envisaged during the bidding.
The design of the sea link has been done by Systra of France.
An MSRDC official admitted the organisation was currently scrutinising the financing documents submitted by R-Infra. “Upon approval of the documents, the company is required to take over the project and pay upfront fee of Rs 1,634 crore to MSRDC towards the Bandra-Worli sea link. The company is also expected to construct the Worli-Haji Ali link as per the concessional agreement for 40 years,” the official added.
An analyst with a broking firm said the proposed coastal road might not be possible in the next eight years as the state might need at least one year to get the MoEF’s approval. Subsequently, at least two to three years are required for carrying out an environment impact assessment, pre-feasibility study and public hearing.
Pursuant to this, the state government would have to undertake the detailed technical study for finalising alignment which would take at least two years.