Uncertainty looms large over the fate of the Rs 5,000-crore Worli-Haji Ali sea link project, as the Maharashtra State Road Development Corporation (MSRDC) and Reliance Sea Link One Pvt Ltd (RSOPL) differ on various issues. In an interview with Sanjay Jog, state minister for public works and MSRDC chairman Jaidatt Kshirsagar speaks about the fate of the project. Edited excerpts:
Has the Worli-Haji Ali project entered into an uncertainty zone?
Not at all. MSRDC has fulfilled all its obligation under the concession agreement, which came into force in June 2010. We have forwarded the state support agreement, toll notification and clearances from MSRDC’s lenders to RSOPL, an arm of Reliance Infrastructure (RInfra). Now, the ball is in RSOPL’s court, as it will have to comply with all the provisions of the concession agreement. It includes payment of Rs 1,634 crore to MSRDC to take over the Worli-Bandra sea link and toll collection. According to the agreement, RSOPL should have handed over the necessary documents regarding the financial closure and the cheque by July 3. However, it has not complied and, therefore, MSRDC has started implementing the provisions relating to the imposition of penalty from July 4. The penalty is Rs 10 lakh per day. MSRDC has intimated RSOPL about invoking the necessary provision in this regard. However, we expect RSOPL to comply with the provisions at the earliest and start the work.
What’s the present status of the project?
The company has to pay, take over the Worli-Bandra sea link project for toll collection, and start the work on the Worli-Haji Ali project. It has to submit the necessary documents regarding the financial closure.
The casting yard issue raised by RSOPL is not a part of the concession agreement. However, for the early implementation of the project, its request will be considered at an appropriate time and at appropriate cost. It should complete the necessary paper work regarding the financial closure and then come to us for further discussion.
What is the confusion over the payment of viability gap funding (VGF) to RSOPL?
There is no confusion at all. MSRDC will have to provide a total VGF of Rs 1,392 crore in three installments. The first installment of Rs 492 crore will be paid after 90 days of the payment of Rs 1,634 crore by RSOPL. Nobody should have any doubt in their mind regarding the fulfillment of commitment by MSRDC on providing VGF. We have paid sizable amount to the lenders to the Worli-Bandra sea link loan portfolio for getting the ‘no objection’ certificate, one of the provisions of the concession agreement.
The stalemate should be over and the project development should begin at the earliest. According to the concession agreement, the project should be completed in three and half years.
