Top sources in the state government have said that the cash-rich MMRDA is likely to bag the 21-km Mumbai Trans-Harbour Link (MTHL) project.
Top sources in the state government have said that the cash-rich MMRDA is likely to bag the 21-km Mumbai Trans-Harbour Link (MTHL) project. The MMRDA and the MSRDC have for long locked horns over which of the two should be the executing agency.
Speaking to DNA, a top state bureaucrat said that both agencies made similar presentations last week before chief minister Prithviraj Chavan, but the one which can bear to fund the viability gap is likely to bag the project.
“One must understand that this is a greenfield project, and the viability gap is close to 50%. Both agencies have claimed they can get central government grant, but the Centre can provide only 20% of the viability gap. Only the agency which can bear the remaining 30% can carry out the project. In this case, it is clear that only the MMRDA has the financial might to bag it,” he said.
“The MSRDC has done a lot of ground work over the past 13 years. But its present financial situation may prevent it from bagging the project. Moreover, the MSRDC has failed to get a favourable response irrespective of its model — the cash contract one and the Build-Operate-Transfer (BOT) one,” said a senior state government official.
The MSRDC’s cost of construction of Rs7,761 crore is lower than the MMRDA’s Rs8,311 crore. But the former has projected a toll of Rs205 against Rs105 quoted by the MMRDA. Both have quoted a construction period of close to four years and a concession period of close to 50 years.
However, the MMRDA seems to have a better understanding of the finances. Its presentation showed that the central government’s funding for the viability gap will be approximately Rs1,662 crore, while the amount that the MMRDA will have to shell out will be approximately Rs2,493 crore.
Two other aspects which may be in the MMRDA’s favour are the connectivity to be provided with the Mumbai-Pune Expressway and development rights of 4.5 million sq ft on the Right of Way (RoW or construction path) on the Sheva side.
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