The deal between the Maharashtra State Road Development Corporation (MSRDC) and the Reliance Infrastructure (RInfra)-led consortium for the construction of the Worli-Haji Ali sea link is likely to be called off.
The deal between the Maharashtra State Road Development Corporation (MSRDC) and the Reliance Infrastructure (RInfra)-led consortium for the construction of the Worli-Haji Ali sea link is likely to be called off. Top MSRDC officials told DNA that the corporation may construct the next phase of the sea link on their own if the RInfra-led Hyundai consortium does not start work by January 2012. MSRDC owns the Bandra-Worli sea link.
“We have given the consortium enough time to get their financial closure. Despite that they have been stubborn about issues such as getting the casting yard, getting an assurance from the state government about the payment of the viability gap and about the state support agreement. The concession agreement clearly mentions that the casting yard for the Worli-Haji Ali sea link will not be given to the concessioner. Yet, the corporation is ready to give it to the RInfra-led consortium if they mobilise their resources,” said MSRDC vice-chairman and managing director Bipin Shrimali.
He said despite the concessions by the MSRDC, there has been no response from RInfra.
“We will wait till January and then decide the future course of action,” said Shrimali. He added that the corporation has even taken a legal opinion about calling off the deal.
“We have already written to the state advocate general and taken his opinion on the issue. We have been told that a retired Supreme Court judge can be appointed as a mediator who will offer to call off the deal. If the consortium does not want to resolve the issue through a mediator, an arbitrator can be appointed to resolve the matter,” said Shrimali.
While R-Infra officials were not ready to comment in detail, a spokesperson said there was no official correspondence from the corporation to the company. “We are still in discussions with the corporation and no such communication has officially reached us so far,” he said. “As per the concession agreement, Reliance stays committed to complete the Worli-Haji Ali sea link. We are full prepared to commence work.”
Sources close to the development said the casting yard issue was the final nail in the coffin between the MSRDC and RInfra. “First the corporation refused to give us (RInfra) a guarantee on the viability gap amount. Then the state government turned down the clause in the state support agreement (9SSA) to back up MSRDC in case of default. Now they are not even ready to hand over the casting yard which belongs to the civic body. How can we start work in such a scenario?” the source asked.
The chief secretary wrote to the civic chief asking him to hand over the 3.5-hecatre casting yard on the Bandra side to the RInfra consortium after deputy chief minister Ajit Pawar held a meeting in August to resolve the crisis. The civic chief in November refused to hand over the casting yard.
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