After a delay of two years, Maharashtra State Road Development Corporation (MSRDC) plans to go for securitisation of the existing Bandra-Worli sea link and the proposed Rs 5,100 crore Worli-Haji Ali sea link project.
The state undertaking, by completing legal and administrative formalities, is set to cancel the 2010 contract awarded under BOT (build operate transfer) model to Reliance Sea Link One Pvt Ltd (RSOPL) — a joint venture between the Anil Dhirubhai Ambani Group’s Reliance Infrastructure and Hyundai Engineering. MSRDC and RSOPL had entered into a concession agreement two years ago, but the project could not kick off due to issues involving amendments to the state support agreement, providing viability fund and giving space for a casting yard.
The state-run corporation now proposes to use money from securitisation to complete the project by adopting an EPC model by roping in a contractor. It, thus, hopes to complete the project in two years.
MSRDC vice-chairman and managing director Bipin Shrimali said the corporation’s board of directors would — at a June 15 meeting — take up a report from former Supreme Court judge B P Singh, who was appointed mediator for both parties. “The report envisages solution of the dispute with a win-win situation on both the parties,” he told Business Standard. “If accepted by MSRDC and RSOPL, it will pave the way to kick off the Worli Haji Ali sea link.”
Shrimali said there are two options before MSRDC to complete the project. One is the BOT model, the other is the EPC (engineering procurement construction) model after securing government approval. Under EPC, the MSRDC would fund the project, while funds would be raised through securitisation.
Under the EPC model, according to Shrimali, the MSRDC would, within six months, appoint a contractor for the proposed construction of the Worli-Haji Ali project.
Maharashtra chief minister Prithviraj Chavan said the sea link has not been replaced by the coastal road project. “It is up to the MSRDC to take a final call,” he informed.
Reliance Infrastructure said MSRDC and RInfra have appointed retired Supreme Court judge Justice B P Singh as a conciliator to resolve various issues related to sea link. “The report of Justice Singh is pending before MSRDC for adoption, since May 2012,” recalled a Reliance Infrastructure. “We look forward to the resolution of various critical issues on this project.”
