MSRDC gets four bids for Express Highway project

Maharashtra State Road Development Corporation (MSRDC) has received four bids for corporatisation of the Mumbai-Pune Expressway Highway Project.

The companies to have submitted the bids are Ideal Road Builders, Hindustan Construction Company, the Ashoka Builders-Gammon consortium and Sancheti-GMR consortium.

MSRDC managing director Anil Lakhina told Business Standard: "The bids with a pre-qualification condition that sought a minimum bid of Rs 900 crore will give a boost to the debt repayment schedule for contracts already executed under the expressway project, expansion of the project through the construction of the National Highway 4 as well as meeting the maintenance expenditure for the entire project."

Friday was the last day for submitting the bids. He said the bids will be analysed by the corporation in the coming days for technical specifications before one of them is accepted.

MSRDC had invited the bids in an effort to hand over the maintenance and operational aspects of the 94-km road to a private firm for 15 years, since it was not making enough funds to pay back the interest on the loan accrued for the project.

MSRDC pays Rs 300 crore annually as interest on the Rs 2,000 crore borrowed for the project, while the revenue (toll tax) is pegged at Rs 85 crore a year.

The successful bidder will pay MSRDC an upfront amount immediately, which will allow the corporation to pay off its outstanding dues on the project.

In addition, the MSRDC will effectively put a cap on further expenses on the project.

According to the tender, the bidders will also strengthen, widen (four-lane), operate and maintain about 111 km of the existing Mumbai-Pune National Highway 4.

Toll collection on the Mumbai-Pune Expressway and the Mumbai-Pune NH 4 will also be handled by the successful bidder. The expressway was built at a cost of Rs 1,630 crore.