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Journalism of Courage
Even as the Rs 6,359 crore Navi Mumbai Special Economic Zone (NMSEZ) is under the firing line of Maharashtra’s Additional Secretary D.K. Sankaran who has probed the deals of Cidco in Navi Mumbai, the project has achieved an important milestone by achieving financial closure. Now, construction is all set to start by June.
After a delay of almost two years, the project may have achieved financial closure but is facing its biggest test with Sankaran saying the award of the project to its current promoter Sea King Infrastructure Ltd (SKIL) was erroneous. ‘‘The project is on schedule. We have completed financial closure two weeks ago and we have even floated tenders for EPC contracts. The work will start by June 15,’’ said a top official of SKIL. SKIL has so far invested close to Rs 319 crore in the project towards payment of advances for land acquisition.
SKIL also asked Asian Development Bank and IFC, Washington to lend US $75 million each combining debt and equity for the project.
But the project’s fate now depends on the chief minister who has to decide whether to invite fresh bids or give the go ahead to SKIL.
A senior state government official said: ‘‘The urban development department has been asked to look into the matter and recommend suitable measures to the government.’’
The uncertainty over project stems from the fact that Sankaran in his report said former VC and MD V.M. Lal presented the legal opinions to state’s high powered committee furnished by SKIL and retired chief justice Y.V. Chandrachud to support the change in the project’s consortium but suppressed the contrary view received from Amarchand Mangaldas. The report says Cidco did not go for a serious advice from authorities like the Advocate General. The issue was letting SKIL lead the consortium to build the SEZ after its former lead promoter Videocon International decided to opt out.
The report says Lal accepted SKIL’s lead, though it did not have adequate financial strength to meet minimum eligibility norms in the EoI on the basis of unconnected balance-sheet of Gujarat Pipavav Port Ltd (GPPL). ‘‘The decision to promote SKIL to lead consortium member was in direct contrast with the proposal approved in the Cabinet. The Cabinet has not been consulted on this major change in the lead consortium member till date,’’ the report says.
‘‘This enquiry reveals that Cidco has allowed the change of leadership in the consortium in a manner that raises doubts on the integrity, legal validity and financial ability of SKIL,’’ the report concludes.
