With the lack of commitment from the Maharashtra State Road Development Corporation about clearance of the pending dues, the contractors for the project Hindustan Construction Corporation is finding it difficult to go ahead with the project.
The project has already been delayed twice over logistical issues, environmental clearance and public interest litigation.
According to the state government's original plans, the project was to be completed by 2003. Of the total cost of Rs 1,300 crore (Rs 13 billion) of the project, around Rs 515 crore (Rs 5.15 billion) is the cost of the bridge, the rest is for developing approach roads on both ends of the sea-link, providing a quick dispersal system, at both ends and other expenses.
According to sources close to the development, trouble started brewing between MSRDC and HCC after the original consultants for the project were changed by the MSRDC and appointed an Egyptian company Dar Consultants as a consultant for the project in 2003.
After alignment of the sea-link was changed following protests from fishermen over environmental issues in 2004, the HCC communicated with the MSRDC with the changes in the project, the cost of the project has gone up to Rs 815 crore (Rs 8.15 billion). However after the negotiations, HCC settled for Rs 694 crore (Rs 6.94 billion).
However, the consultants for the project DAR in April 2006, proposed that even after changes in the original scope of the project, the cost should be Rs 553 crore (Rs 5.53 billion).
This was not acceptable to the HCC and since then the HCC has made a number of requests to the state government and MSRDC to resolve the issue. But nothing has come of it.
But now, HCC is going for the most critical part of the project, erection of the cable stay bridge. For this, it needs to invest Rs 100 crore (Rs 1 billion) in importing cables. HCC is not ready to take this step unless it gets a firm commitment from both the state government and HCC, that they will honour their original assurance of paying Rs 694 crore (Rs 6.94 billion) to the HCC, said sources.
When contacted, minister for public works and chairman of MSRDC Anil Deshmukh said, "The issue is not between us and HCC, it is between DAR Consultants and HCC. We have asked them to sit together and find a solution to the problem and come up with a figure. After we get the report from consultant, we can immediately release the funds, he added.
However if the company and the consultants do not reach an agreement then the matter can be referred to the technical advisory committee. But we are confident, a solution will be found very soon and the deadline of the April 2008 will be met.
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