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Post bid, MTHL cost could go up by Rs 2K cr

Sources in the MMRDA say the increase might be because of the changing taxation structure following the Good & Services Tax (GST) but MMRDA has maintained that it will ask for a justification from the bidders on their quotes.

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Post bid, MTHL cost could go up by Rs 2K cr
The proposed plan for MTHL
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    In what comes as a major jolt for the Mumbai Metropolitan Region Development Authority (MMRDA), the construction cost of the Mumbai Trans Harbour Link (MTHL) is set to increase after bidders quoted more than MMRDA's estimations for the project.

    Sources in the MMRDA say the increase might be because of the changing taxation structure following the Good & Services Tax (GST) but MMRDA has maintained that it will ask for a justification from the bidders on their quotes.

    The authority had estimated Rs 12,600 crore for the civil construction out of the total cost of Rs 17,800 crore for the project. However, bidders for two out of the total three packages, in which the project was divided, have quoted 15 per cent more than the estimations. The financial bids for the third package are likely to be opened on Friday.

    According to MMRDA officials, the construction cost is roughly set to go up by Rs 2,000 to 2,500 crore. UPS Madan, Metropolitan Commissioner, MMRDA told DNA, "Financial bids for package 1 and 2 were opened on Thursday. L&T with IHI Japan, and Tata Projects with Daewoo Korea are the lowest respectively. Both are about 15 per cent higher."

    MMRDA denied scrapping the bidding process and re-tendering. "We will ask for justification and negotiate. Then we will seek JICA's concurrence," Madan added. The Japanese International Cooperation Agency (JICA) is funding almost 85 per cent of the project cost.

    An upward scale

     

    2005: Rs 4,000 crore
    2008: Rs 6,000 crore
    2011: Rs 8,800 crore
    2012: Rs 9,360 crore
    2014: Rs 11,000 crore
    2016: Rs 17,800 crore
    2017: Likely to touch Rs 20,000 crore
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