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MSRDC to begin valuation of its assets; BWSL to be insured soon

Mumbai-Pune Expressway and corporation's flyovers across state among projects to be valuated

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While the Bandra-Worli Sea Link (BWSL) was made operational in 2009 and the Mumbai-Pune Expressway in 2004, the cash-strapped Maharashtra State Road Development Corporation (MSRDC), has, after so many years, decided to conduct a valuation of the iconic 4.7-km-long BWSL and the 94.5-km-long Expressway in order to have both projects covered by insurance.

An official from MSRDC said, "We have initiated the process of appointing consultants who will do the valuation and on the basis of their fresh valuation we will decide the premium on insurance and the total amount of insurance of the assets owned by MSRDC."

Apart from the sea link and expressway, the other assets include city roads, bridges and flyovers owned by the MSRDC across the state, and bypass roads. Valuation will also be done for the corporation's rail overbridges, subways, toll collection systems, residential and commercial premises, computers and other furniture and fixtures.

Once covered by insurance, the MSRDC can make claims for the damages that may occur to both projects due to unavoidable circumstances such as a natural disaster or terrorist attack.

The insuring of infrastructure projects is not new and has been a practice for a long time. Insurance also provides cover against third-party liability risks. However, currently, none of the projects of MSRDC — including the state's toll collection booths and flyovers — are covered by insurance.

An official from MSRDC, on the condition of anonymity, said, "The fact that none of our iconic infrastructures are covered by insurance is partly because of the corporation's financial condition. As of today, our outstanding debt would be somewhere around Rs 4,000 crore."

The official added, "Many are questioning why we are going for insurance now, considering the financial condition is not good. It is only because the top political and bureaucratic authorities are afraid of facing flak. The development also comes in the backdrop of the state government sending managing director Radheshyam Mopalwar on forced leave after opposition parties alleged financial irregularities."

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