MSRDC sets Jan 2012 deadline to RInfra
The Maharashtra State Road Development Corporation (MSRDC), which awarded the contract to build Worli-Haji Ali sea-link to Reliance Infrastructure last year, has asked the company to start work by January 2012.
The state agency has asked the RInfra-led Hyundai consortium to start work on the sea link by January 2012 or else it will construct the 5.5 km-long bridge on its own, according to sources in the MSRDC.
RInfra on the other hand maintains that until the state guarantees the viability gap funding (VGF) of Rs1,350 crore for the project and fulfills promise of handing over 3.5 hectare land at Bandra for a casting yard, it will not commence the work.
However, the MSRDC maintains that handing over of the land for the casting yard is not part of the concession agreement. The handing over of the casting yard land is not part of the agreement between us. We have repeatedly told the company that MSRDC will pay the VGF, but they are still unwilling to start the work," the official said.
RInfra spokesperson, however, said VGF, execution of the state support agreement and allotment of land for the casting yard are the most crucial elements for taking the project ahead.
"As per the agreement, we stay committed to execute the project. We are fully prepared to commence the work and we have also completed the financial tie-ups with our lenders. But unless we get VGF assurance from the government and allotment of land for a casting yard, we cannot take our project further. These are the critical issues on which we are in talks with both MSRDC and the government," the spokesperson said.