The Maharashtra State Road Development Corporation (MSRDC) has taken over the Rs 150-crore Airoli bridge project from another state government body City Industrial Development Corporation (Cidco).
MSRDC is the nodal agency for road projects in the state. A recent newsletter of the corporation issued to investors in bond issue floated by it last year says that the project was taken over from Cidco in August, 1998.
"The project was taken over from Cidco as it was getting delayed. The delay was due to Cidco facing a resource crunch," said R K Jha executive director MSRDC.
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The 1.1 km bridge will link Mulund, a North Eastern suburb of Mumbai with Airoli, just outside the city. Besides, it also entails the construction of a 2.5 km approach road. The bridge was expected to be ready by May, 1998. "We now expect to commission the bridge by January, 1999," said Jha.
Cidco is facing a resource crunch as it has a substantial exposure in real estate in Mumbai. Property prices have crashed in Mumbai over the last three years affecting its bottomline resulting in lesser allocation to the bridge project. The construction of the bridge is expected to give a fillip to property prices in Airoli as a link with Mumbai will be established.
MSRDC which was incorporated as a wholly owned state government company in 1996 for facilitating the development of road infrastructure in Maharashtra last year floated a bond isssue through which it gathered Rs 1,170 crore.
This was the largest private placement by any state government undertaking in India. The proceeds of the bond issue are being utilised for the construction of the Mumbai-Pune Expressway and various flyovers in and around Mumbai. It plans to commission the expressway by January, 2000. It has already spent Rs 164 crore on the expressway project and another Rs 125 crore on the flyovers.
The other projects taken up by MSRDC include the Rs 300 crore Worli-Bandra sea link in which it will hold 26 per cent equity and the Mumbai Trans-Harbour Sea Link. The second project has been embroiled in a controversy over the dismantlement of a jetty at Pir Pau in the premises of the Mumbai Port Trust.