Saturday, July 5, 2008

Finding the Missing Link

The Rs 6,000-crore Mumbai Trans Harbour Link project, a vital infrastructure aiming to connect Mumbai to Navi Mumbai, is at a dead-end. MSRDC had called for bidding and it took four years for the process. The nodal agency had to call for bidding again. The 22-km has been frustrated by all sorts of delays—environmental, bureaucratic, corporate and legal. This is India's longest link and it turnes out to be a fight between—Mukesh and Anil Ambani—the only two contenders.
MSRDC had kept the crieteria for selecting the developer having the lowest concession period. An intersting finding came forward. Mukesh Ambani's consortium had quoted 75 years concession period and Anil Ambani's consortium quoted less than 10 years- What a Mismatch.
If developers cannot be finalised, the state government may be left with little choice having to do projects on its own. It is a grim proposition considering the huge finances involved. Private participation is inevitable, and so is the imperative of taking tough business-like decisions says Project Monitor