Mumbai Trans-Harbour Link project parleys in last lap

The Rs 6,000 crore, 25 km-long Mumbai Trans Harbour Link (MTHL) sea link project "" between Nhava Sheva and Mumbai city (terminating at Sewri) "" submitted by the IL&FS to the Maharashtra government is currently in final stage of discussion.

Interestingly, while the IL&FS proposal seeks to implement the project at its own cost "" read no financial cost to the state government, another entity, the Maharashtra State Road Development Corporation (MSRDC) has also submitted a counter-proposal that offers no freebie to the state.

According to a well placed state government official, "The IL&FS proposal is intended on a build own operate and transfer (BOOT) basis and offers to execute the project at no cost to the state of Maharashtra simply because the firm is part of the consortium that is implementing the Mumbai integrated special economic zone MiSEZ in Navi Mumbai. For them the benefit of executing this vital link is tremendous as it would boost their prospects for the SEZ as well as hinterland development of the satellite township."

The MSRDC proposal would entail a cost on the state exchequer, in addition to raising issues of delays in implementation of the project as is currently being witnessed in the ambitious Bandra-Worli sea link project that has been stalled over cost issues raised by the private developer appointed by MSRDC.

"We are keen to avoid any such repetitions that delay development projects in the state. The IL&FS proposal, therefore, will entail stringent completion milestones as part of the project leaving the option open to the state government to hold the private firm accountable for any delays.

"For instance, once the project implementation is underway, if the IL&FS subsequently raises any fund requirement demands upon the state government, we would be entitled to ask some other firm to underbid this demand and take over the project from IL&FS," the official said.

He added that in addition to this a nominee of the Union as well as state government would be appointed to the board of directors of the special purpose vehicle that would monitor the progress of the project.

The IL&FS proposal also highlight the simultaneous implementation of the MiSEZ (being the integrated Navi Mumbai SEZ and Maha Mumbai SEZ projects) both of which are being implemented by the Sea King-led consortium to which IL&FS is a financial and implementing consultant.

The first phase of the MiSEZ envisages a Rs 5,000 crore expenditure over 2500 hectare of the project site that entails a total capitalisation of Rs 20,000 crore and will sustain a population of two lakh people.

For the MiSEZ promoters hope to inspire a housing boom in southern Navi Mumbai on over 2500 hectare with the sea link providing the necessary fillip to making the satellite township an integral part of Mumbai city, while also effectively decongesting Mumbai.