Vahanvati’s letter says sea link and coastal road can’t co-exist

“The letter only says that the sea link and coastal road cannot co-exist. This does not mean that the sea link plan has to be scrapped. In fact,the letter goes on to say that there should either be a sea link or a coastal road,” said Bipin Shrimali,vice-chairman and managing director of MSRDC.

The MSRDC board members will consider Vahanvati’s letter and a mediator’s report submitted last month on the disputes between the concessionaire for the project,RInfra,and MSRDC. The board will then make a representation to the state government. “The government will take a final decision on the matter,” he said.

Another senior official said the MSRDC wishes to take up the project as there is no finality on the plan for a coastal road yet,while the Worli-Haji Ali Sea Link project plan is fully ready to be implemented.

The coastal road project,which involves reclamation of land to a great extent,is yet to get the crucial environmental clearance.

“However,if we are going ahead with the project,there is no option other than to end the existing contract with Reliance Infrastructure once certain legal issues are sorted out and take it up on our own,” the official said.

In June 2010,the MSRDC had signed a concession agreement with Reliance Infrastructure to build the sea link,but the project was stalled due to differences between the two parties over issues such as payment of the viability gap fund,handing over of the casting yard and completion of formalities before beginning construction.

Last month,retired Justice B P Singh,who acted as a mediator,submitted a report saying Reliance Infrastructure should be allowed an exit from the contract. Vahanvati’s letter also called for an amicable termination of the agreement between MSRDC and Reliance Infrastructure without any monetary liability on either side.

“The MSRDC chairman will have a discussion with the chairman of Reliance Infrastructure soon in the light of the Attorney General’s letter and the mediator’s report,and we will take a decision accordingly,” Shrimali said.