The government of Maharashtra has decided to scrap the tender awarded to Reliance Infrastructure (R-Infra) in 2010 for construction of a link over the sea from Worli to Haji Ali, in this city, costing Rs 5,000 crore.
Besides, the committee also gave its nod for the repudiation of concession agreement betwee Reliance Infrastructure (R-Infra) led consortium and state run Maharashtra State Road Development Corporation (MSRDC) signed in June 2010 for the same project.
However, the cabinet sub-committee has asked the MSRDC and the Brihanmumbai Municipal Corporation (BMC) to examine the very necessity of the Worli Haji Ali sea link especially when the Rs 13,000 crore coastal road connecting south and north Mumbai are proposed.
Besides, the cabinet sub committee also directed MSRDC and BMC to explore option of combination of Worli Haji Ali sea link or other links and proposed coastal road.
MSRDC official told Business Standard, "The state empowered committee in March had taken a decision to scrap both the tender and the concession agreement. However, it had recommended that the final decision in this regard will have to be taken by the cabinet sub committee which at its meeting held on Monday gave its approval. However, the committee has clearly indicated that the project is not yet completely dead and therefore asked MSRDC and BMC to look into the combination of Worli Haji Ali sea link or similar links and the proposed coastal road and their viability. The cabinet sub committee will thereafter decide the fate of the Worli Haji Ali sea link."
As reported earlier, the project which is an extension of the Bandra-Worli sea link was announced in May 2008 by the Congress-NCP government. Environment clearance for the project was given in February 2010.
Project bid for construction of the bridge was awarded to the consortium of Reliance Infrastructure and Hyundai Engineering & Construction Company in February 2010 and the concession agreement was signed on June 28, 2010. The construction work involved 3.4 km of the main bridge with 2.6 km-long connectors.
However, the project could not take off due to administrative and environmental issues. The government and contractors were at loggerheads over availability of a casting yard and the lack of other approvals required for constructing the link.
Subsequently, retired justice B P Singh, who was appointed as mediator, in his report observed that the government had no authority to change the terms and conditions of the original agreement once the project was awarded to the bidder.