MSRDC, in a communication dated August 21, 2017, sent to the five shortlisted companies that include Chinese and South Korean consortium, that eligibility of the bidder shall be subject to the outcome of security clearance.
After shortlisting Chinese and South Korean companies for construction of Bandra-Versova Sea Link (BVSL), MSRDC has raised a red flag on these bidders, stating that their eligibility is subject to security clearance from the Union Home Ministry considering that the construction site is crucial from the security point of view.
In July, the Union Home Ministry had denied security clearance to a Chinese consortium for construction of Mumbai Trans Harbour Link (MTHL) between Sewri and Nhava Sheva being executed by Mumbai Metropolitan Region Development Authority (MMRDA).
MSRDC, in a communication dated August 21, 2017, sent to the five shortlisted companies that include Chinese and South Korean consortium, that eligibility of the bidder shall be subject to the outcome of security clearance.
A senior MSRDC official said, "We have submitted the names of the five bidders and have sought security clearance from the Centre a month ago and expect the clearance soon. Also, it was done after Chinese bidders shared with us the problems they faced when they were denied security clearance during construction of Bandra-Worli Sea Link."
A security clearance is required when the construction site is in the vicinity of crucial defence or security installations, and is granted by the Union Home Ministry that consults the Intelligence Bureau and the Ministry of External Affairs before granting it.
In the past, Chinese companies or groups with Chinese connections have been barred from bidding for Indian port projects by the Union Cabinet Committee on security grounds because of the shifting political relationship between the two countries.
The five shortlisted bidders include China Harbour Engineering Co. Ltd-Soma joint venture (JV), Hyundai-ITD Cementation JV, L&T-Daewoo JV, HCC-SKEC JV and Reliance-CGCD JV.
The 9.5-km-long Bandra-Versova sea link will be constructed at a cost of Rs 5,500 crore, and to make the project financially viable, the project's concession period would be for 28 years, which means that the sea link will be tollable for 28 years.
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