Worli-Haji Ali Sea Link: MSRDC confident of raising funds

After the state government refused to pay the Viability Gap Fund for the construction of Worli-Haji Ali Sea Link,the cash-strapped Maharashtra State Road Development Corporation said it is confident of raising Rs 1,392 crore to be given to Reliance Infrastructure Ltd-led consortium over the next three years.

After the state government refused to pay the Viability Gap Fund for the construction of Worli-Haji Ali Sea Link,the cash-strapped Maharashtra State Road Development Corporation (MSRDC) said it is confident of raising Rs 1,392 crore to be given to Reliance Infrastructure Ltd-led consortium over the next three years.

Last week,in a meeting of MSRDC officials,several state bureaucrats and the chief secretary,the corporation was asked to consider the option of constructing a narrower,four-lane sea link to bring down the VGF by half,or to negotiate the VGF sum with the consortium. It was also asked to lease out or sell the plots it owns along the Mumbai-Pune Expressway to raise the amount.

We are definitely going ahead with the sea link as planned. Though the government has said no for the VGF,we can manage to raise the funds on our own. Currently,the government has denied the VGF but it can compensate in other ways by bonds etc, said Bipin Shrimali,vice-chairman and managing director,MSRDC. The consortium is going to make an upfront payment of Rs 1,634 crore to buy out the operations and maintenance rights to the Bandra Worli Sea Link for 40 years,which can help the MSRDC settle the VGF for the next arm of the sea link.

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The corporation,which had recently received Rs 2,100 crore for toll securitisation of Mumbais entry points,has exhausted almost the entire amount in clearing debts,official sources said.

As per the agreement,much to the relief of the MSRDC,the VGF has to given out in three equal installments over three years. This year,we have to give out Rs 464 crore. By the next year,many other things can be worked out from bonds,land development etc, Shrimali added. He said the deal will be inked as per the schedule in the first week of July.

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