Worli-Haji Ali link awaits decision on bid,Bandra-Worli second arm gets a date

The bids for the 4.7-km extension of the Bandra Worli Sea Link were opened on February 4,2009,and have been awaiting Chief Minister Ashok Chavan’s clearance for eight months. A Reliance Infrastructure Ltd-led consortium emerged the frontrunner to bag the contract with its lowest quote: a Viability Gap Fund (VGF) of Rs 1,392 crore.

The MSRDC,which was to send a request letter to Reliance Infrastructure Ltd seeking extension of the bid’s validity period,has not done so yet. “We’ve not sent the request letter yet. It is crucial for the bid to be cleared in tomorrow’s meeting as it has been long pending,” said a senior MSRDC official.

Sources said RInfra is still indecisive about whether it will agree to an extension of the validity of the bid. The RInfra spokesperson did not comment on this.

“RInfra is awaiting the decision of the government and hasn’t taken a call whether to accept the extension request,if it is asked for,” a source added.

If RInfra decides against an extended validity,the only option for the state government would be re-inviting tenders for the Rs 5,000-crore project. An MSRDC official said that if that happens,the VGF is expected to go up to Rs 2,500 crore from the Rs 1,392 crore now quoted.

The corporation is already in financial turmoil and could suffer further if the agency has to go in for re-tendering. Construction work on this arm would then be possible only by 2011-12,MSRDC officials said.