Already facing an acute cash crunch,the Maharashtra State Road Development Corporation (MSRDC) owes Rs 500 crore to its Bandra-Worli sea link contractor. Sources said the corporation,for its part,is owed nearly Rs 2,300 crore by the state government. The MSRDC has stopped payment to other contractors for several projects across the state. Unless the government provides aid,sources said,this could jeopardise the fate of these projects. According to Vimal Mundada,Minister for the Public Works Department (public undertakings),the corporation has to settle three pending bills with Hindustan Construction Company,which is responsible for building the 5.6-km sea link. Three of their bills are pending. In May,we paid Rs 86 crore,part of the pending bills. Earlier,we had paid a little over Rs 100 crore. So,there is no question of our not paying our contractors. We will clear the remaining bills as soon as possible, Mundada said. She was confident that the project would not be hampered by non-payment. The MSRDC has taken up the responsibility for constructing the Jogeshwari-Vikhroli link road,Santacruz-Chembur link road,Bandra-Worli sea link and nearly 25 skywalks in the Mumbai Metropolitan Region. The 22.5-km Mumbai Trans Harbour Link,its cost estimated at around Rs 6,000 crore,is now being financed by the comparatively healthy MMRDA,CIDCO and MIDC. The minister has urged Chief Minister Ashok Chavan to expedite the clearance of the Rs 2,300-crore dues. I have taken up the issue with the Chief Minister and the finance minister. They have assured me that the issue would be resolved soon, Mundada said. Sources said the state government has assured a bailout package of nearly Rs 200 crore to help the cash-strapped corporation out of its financial difficulties. But MSRDC officials feel that Rs 200 crore is too small an amount to get the corporation out of the crisis. MSRDC officials said the corporation owes Rs 850 crore to the Mumbai Metropolitan Region Development Authority and over Rs 1,000 crore to some banks.
