Road corp still owes contractor Rs 480 crore for year-old sea link

“The regular bills have been cleared. The reconciliation process is on and these things take time. We are committed to resolving the issue and paying the contractor,” assured Jaydutt Kshirsagar,PWD (Public Undertakings) Minister. A spokesperson for HCC declined to comment.

The MSRDC,under a serious funds crunch,will bank on the upfront payment of Rs 1,634 crore from Reliance Infrastructure Ltd to buy out the BWSL. Kshirsagar indicated the huge sum would help in paying up the pending dues to HCC. “The financial situation is not so weak. Hopefully,after Rinfra makes the payment,we will pay the contractor provided the issue is resolved,” he said.

Sources said the cost escalations are for design and plan changes,higher cost of raw materials,and the extended project completion tenure. When the contract was signed,the cost of the bridge (package IV of the contract) was estimated at Rs 400 crore but,till the last estimates,delays had raised the cost to Rs 852 crore. The design changes,soon after the contract was signed on October 1,2000,set the course for a series of disputes,unresolved till date.

Meanwhile,the concession agreement for the next arm of the sea link from Worli to Haji Ali is expected to be signed by the month-end,and the payment to buy out the BWSL within the next six months,MSRDC officials said.