Standoff over Worli-Haji Ali sea link construction

MUMBAI: The state government and Reliance Infrastructure (RInfra) are currently caught in a standoff on the issue of the construction of the Rs 5,000-crore Worli-Haji Ali section of the western sea link.
Maharashtra State Road Development Corporation(MSRDC) managing director Bipin Shrimali has stated that the body will go ahead with the project, but sources said the RInfra management will not proceed until several issues are sorted out.
RInfra officials maintain that they were selected for the construction of the section in 2008.
Sources said that the bankers for the project, which is expected to cost Rs 5,000 crore, have the following demands: they want a state support agreement to be signed, land for establishing a casting yard, disbursal of the Viability Gap Funding (VGF) for the project, and an agreement that no coastal road will be built between Worli and Haji Ali.
The VGF for the project amounts to Rs 1,392 crore and should be given in three tranches by the government. Sources said that all these issues were discussed in a meeting with chief minister Prithviraj Chavan in August this year but have not taken shape till date.
“We hear that the RInfra management and MSRDC officials are meeting informally on a regular basis but nothing has come in the way of implementation of these four issues so far,’’ the sources said. MSRDC officials have said they are working on the issues.
The RInfra management, it is believed, is upset about the issue of the coastal road, which has come as a block to the sea link. The Worli–Haji Ali sea link is part of the sea link which will also connect Bandra and Versova.
Sources said the bankers for the project, which is expected to cost Rs 5,000 crore, have a few demands, like a state support agreement to be signed and land for a casting yard.