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Worli-Haji Ali Sea Link in trouble?

Maharashtra govt has refused to fund viability gap, cash-strapped MSRDC clueless.

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The state government has categorically refused to bail out the cash-strapped Maharashtra State Road Development Corporation (MSRDC) and fund the 5.5-km Worli-Haji Ali Sea Link, with the result that the future of the extension is now in limbo.

State chief secretary Ratnakar Gaikwad recently held a joint meeting of officials of the MSRDC and the Reliance Infrastructure-led consortium. Principal secretaries of the finance and planning departments, Sudhir Srivastava and Sitaram Kunte, were also present at the meeting.

Confirming that the state has refused to pay the viability gap funding (VGF) of Rs1,392 crore for the second phase of the Bandra Worli Sea Link, Gaikwad told DNA that the decision was taken by the cabinet committee on infrastructure last year itself.

“However, we have suggested some options. One of them is to construct only four lanes at present, bringing down the VGF at least by half. Also, the MSRDC, which has recently received Rs2,100 crore for the toll securitisation of Mumbai’s entry points, can divert that money for the VGF,” said Gaikwad. However, the MSRDC has already exhausted most of the toll securitisation money to pay off its debts.

“The government is certainly not in a position to pay the VGF as its own fiscal deficit is very high at 2.1%. The non-planned expenditures are also at a high level, ruling out the possibility of any such funding,” said a top government official, who was present at the meeting.

“It is almost certain that the MSRDC will have to dig deep into its kitty,” said a top state bureaucrat. “It has close to 600 acres of land adjacent to the Mumbai-Pune expressway in 23 locations. The government has suggested that if the land is handed over to agencies such as the City Industrial Development Corporation (Cidco) or the Mumbai Metropolitan Region Development Authority (MMRDA) for creating townships, the MSRDC can make good money. However, officials of the corporation were not keen on to this proposal,” he said.

He added that the coastal road option has come up once again. “The government has asked the corporation to study whether a coastal road can be built instead of a sea link. It has asked the MSRDC to request the Union ministry of environment and forests (MoEF) to treat the coastal road project as a special case.”

While Reliance officials refused to comment on the issue, MSRDC vice-chairman and managing director Bipin Shrimali was confident about resolving the deadlocks. “We are in touch with our bankers. At the moment, there is no plan for any extension. We are mobilising some funds and the deal should be closed in the first week of July. We have our board meeting on June 28,” said Shrimali.

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