The Times of India 02.11.2009
Multi-crore water works projects may change hands
MUMBAI: Bureaucratic delays are taking a toll on the city's much-needed infrastructure projects. The Rs 7,000-crore Mumbai Trans Harbour Link (MTHL) between Nhava and Sewri and the Rs 2,000-crore Passenger Water Transport (PWT) on the western and eastern coasts are likely to see a change in ownership soon - even though contractors for their construction were yet to be selected.
After two unsuccessful attempts to put them into execution mode, Maharashtra State Road Development Corporation (MSRDC) is reported to be giving up the ambitious 22-kilometer sealink project connecting Mumbai and Navi Mumbai via the Thane creek. The reason: it is unable to take part in high-cost public private partnership (PPP) projects due to its sinking finances.
"Instead, the Mumbai Metropolitan Region Development Authority (MMRDA), which is worth over Rs 12,000 crore, will take over the project as a partner in the PPP. The decision will be finalised once the new cabinet takes over,'' revealed a senior Mantralaya official on the condition of anonymity.
According to the official, the PWT project between Borivli and Nairman Point on the western coast and another between Gateway of India and Navi Mumbai and Thane, will also be taken over by MMRDA as none of the nine major infrastructure companies bid for MSRDC's tender despite extending the deadline for bid submission three times.
According to sources, change in the ownership of these two projects will take some time as certain formalities are involved like consultant's study, fresh estimates, cabinet nod, tendering, finalising designs and alignments, and formation of a special purpose vehicle for the equity partnership of the government and private agencies.
MSRDC currently incurs losses exceeding Rs 3,000 crore. The failure of its recent plan to revive finances by leasing out toll posts of Mumbai and Bandra-Worli sealink at a whopping Rs 4,500 crore has prompted MMRDA to take up this new assignment.
MSRDC's earlier attempts since 2005 to attract international firms for MTHL's construction failed as the Ambani brothers, both partnering with international firms, were locked in a battle for the project which led to a legal fight and ultimately a delay of more than a year and a half. Later, MSRDC scrapped the bids of both the brothers saying that it was impractical to build and recover the project's cost in extremely short and long periods. Anil Ambani's firm had bid with 10 years time while that of Mukesh with 75 years.
After this, MSRDC floated a cash contract a year ago with the help of finances from MMRDA. None of the international firms, though, responded to this contract due to the economic slowdown and the state's inability to pay against the depreciation in the rupee's value. For this cash contract too, several domestic majors had tied up with multinational infrastructure companies, but later did not turn up.
Once ready, MTHL is expected to carry more than 95,000 vehicles per day with most of the traffic headed towards Pune, Konkan, Goa, Thane and the southern states. With several new townships and infrastructure projects coming up in Navi Mumbai, industrial giants want to build this crucial link. It was suggested long ago by none other than both JRD Tata and Dhirubhai Ambani.
Similarly, a recent transport study by Lee Associates has found that nearly 1.86 lakh commuters from the city's suburbs along the west coast, that is from Cuffe Parade to Borivli, are ready to board catamarans and hovercraft immediately if made available, instead of the traditional locals, BEST buses or private taxis.
However, on the eastern seafront, the availability of commuters for water transport is poor - barely 12,548 but can be improved gradually, depending on the quality, fare structure and frequency of the services.
Interestingly, those ready to board hovercraft daily are fewer than those who prefer catarmarans as the latter is a cheaper mode of transport. The survey, though, states that the passenger potential for passenger water transport might fall over the next 20 years for various other reasons such as availability of more choices such as metro and mono rails and natural hindrances in water transport during monsoon.
After two unsuccessful attempts to put them into execution mode, Maharashtra State Road Development Corporation (MSRDC) is reported to be giving up the ambitious 22-kilometer sealink project connecting Mumbai and Navi Mumbai via the Thane creek. The reason: it is unable to take part in high-cost public private partnership (PPP) projects due to its sinking finances.
"Instead, the Mumbai Metropolitan Region Development Authority (MMRDA), which is worth over Rs 12,000 crore, will take over the project as a partner in the PPP. The decision will be finalised once the new cabinet takes over,'' revealed a senior Mantralaya official on the condition of anonymity.
According to the official, the PWT project between Borivli and Nairman Point on the western coast and another between Gateway of India and Navi Mumbai and Thane, will also be taken over by MMRDA as none of the nine major infrastructure companies bid for MSRDC's tender despite extending the deadline for bid submission three times.
According to sources, change in the ownership of these two projects will take some time as certain formalities are involved like consultant's study, fresh estimates, cabinet nod, tendering, finalising designs and alignments, and formation of a special purpose vehicle for the equity partnership of the government and private agencies.
MSRDC currently incurs losses exceeding Rs 3,000 crore. The failure of its recent plan to revive finances by leasing out toll posts of Mumbai and Bandra-Worli sealink at a whopping Rs 4,500 crore has prompted MMRDA to take up this new assignment.
MSRDC's earlier attempts since 2005 to attract international firms for MTHL's construction failed as the Ambani brothers, both partnering with international firms, were locked in a battle for the project which led to a legal fight and ultimately a delay of more than a year and a half. Later, MSRDC scrapped the bids of both the brothers saying that it was impractical to build and recover the project's cost in extremely short and long periods. Anil Ambani's firm had bid with 10 years time while that of Mukesh with 75 years.
After this, MSRDC floated a cash contract a year ago with the help of finances from MMRDA. None of the international firms, though, responded to this contract due to the economic slowdown and the state's inability to pay against the depreciation in the rupee's value. For this cash contract too, several domestic majors had tied up with multinational infrastructure companies, but later did not turn up.
Once ready, MTHL is expected to carry more than 95,000 vehicles per day with most of the traffic headed towards Pune, Konkan, Goa, Thane and the southern states. With several new townships and infrastructure projects coming up in Navi Mumbai, industrial giants want to build this crucial link. It was suggested long ago by none other than both JRD Tata and Dhirubhai Ambani.
Similarly, a recent transport study by Lee Associates has found that nearly 1.86 lakh commuters from the city's suburbs along the west coast, that is from Cuffe Parade to Borivli, are ready to board catamarans and hovercraft immediately if made available, instead of the traditional locals, BEST buses or private taxis.
However, on the eastern seafront, the availability of commuters for water transport is poor - barely 12,548 but can be improved gradually, depending on the quality, fare structure and frequency of the services.
Interestingly, those ready to board hovercraft daily are fewer than those who prefer catarmarans as the latter is a cheaper mode of transport. The survey, though, states that the passenger potential for passenger water transport might fall over the next 20 years for various other reasons such as availability of more choices such as metro and mono rails and natural hindrances in water transport during monsoon.
