None of the major infrastructure projects, which are part of state government's ambitious $40 billion 'Mumbai Makeover' program like second line of Mumbai Metro, second airport at Navi Mumbai and Mumbai Trans Harbour Link (MTHL) between Sewari and Nava-Sheva, have been able to progress beyond bidding stage while in some cases they have not progressed even up to that.
Besides economic slowdown, haphazard policy measures by the government are also making investors weary from investing large amounts to these projects.
The second line project of Mumbai metro got delayed, first due to change of alignment, and then due to an internal debate in the Mumbai Metropolitan Regional Development Authority (MMRDA), which is a nodal agency for the project, regarding the project development model.
According to initial plans, second line was supposed to have come up between Colaba-Bandra-Charkop. But the plan was dropped after authorities realised it would not be possible to have elevated Metro corridor between Colaba and Mahim. Subsequently alignment was changed and now second line would come up between Charkop-Bandra-Mankhurd.
However, post the pre-qualification bids, internal debate started in MMRDA on whether Public Private Partnership (PPP) model was correct for such projects and whether the Metro project should be carried on the lines of Delhi Metro by forming separate corporation for the project.
However as MMRDA could not decide on a conclusion, the state government had to step in, directing the authority to ensure it gives out the work order by the first January. Now, MMRDA plans to open the financial bids in the last week of January and give the work order by early February.
The second line of Mumbai Metro is the longest corridor in the entire Mumbai Metro project of 31.8 KM. The estimated cost of the project is around Rs 6,200 crore and viability gap funding of around Rs 1500 crore will be required for the project. Besides Ambani brothers, L&T, Tata Power, GVK, IL&FS and Essar are in the race to bag the project.
The MTHL project is a classic case of how government should not handle the infrastructure projects. After first announcing the intentions to construct such project way back in 2004, tendering process is not even complete.
First the project ran into trouble because of agitation by fishermen community and environmentalists who subsequently filed the PIL, but the courts refused to look into the PIL, Maharashtra State Road Development Corporation (MSRDC), which is a nodal agency for the project, called for bids in 2006.
Subsequently, Anil Ambani promoted RInfra was disqualified at the pre-qualifying stage, which company successfully challenged in to the courts. Due to this legal tangle project got further delayed by one year.
Finally when bidding process was over and financial bids were open earlier this year, two Ambani brothers who were in the race for the project, asked for the concession period (period for which company gets right to collect the toll) which was polls apart. While Mukesh Ambani led consortium asked for 75 years period, RInfra and its consortium partner asked for concession period of 10 years.
The government decided to go ahead with the project and only to hand over Engineering Procurement Construction (EPC) contract. The EPC bids were called in September this year but by that time financial melt down had hit the world and its bid did not got adequate response, so now the deadline has been extended till January 2009.
Another big ticket infrastructure project which has not made any headway is second airport at Navai Mumbai which is supposed to be operational by 2011, but is yet to receive environmental clearance from central government.
Another state government corporation City and Industrial Development Corporation (CIDCO) plans to develop second airport on around 1200 hectares of land at Ulve village near Panvel in Navi Mumbai area.
Almost 80 per cent land belongs to CIDCO, Central government's cabinet has given in principal approval for the project, however CIDCO is unable to start the bidding process as environment ministry has not given clearance.
The only infrastructure project which made some progress in 2008 is first line of the Mumbai Metro between Varsova-Andheri-Ghatkopar which is being developed by RInfra, tendering process of monorail project between Wadala and Jacob Circle and rental housing.
The Mumbai Metro One officials which is a joint venture between RInfra and MMRDA hopes the project will be completed by July 2010 instead of an earlier deadline of 2012 as the financial closure has been achieved and civil work is in full swing.
Another project which has made some headways is the monorail, consortium of the L&T and Malaysian company Scoomi has bagged the contract for Rs 2460 crore project and it has been asked to go ahead without waiting for formal ground breaking ceremony and the Rental housing.
