Deadline for bids will be extended by 45 days

The Maharashtra government and Maharashtra State Road Development Corporation (MSRDC) received another setback on Friday, as there were no bids in the second round for the Mumbai trans-harbour link.

MSRDC officials were optimistic that two to three consortiums would come forward to construct the 22-km sealink.

Admitting it was a fiasco, a top MSRDC official said action will be decided in consultation with the Mumbai Metropolitan Region Development Authority (MMRDA). "MMRDA will pump in money for the project. A decision will be taken by the MSRDC and MMRDA top brass. We have failed on the built-operate-transfer model. Now the cash contract model has no takers. We do not have an option but to extend the deadline by at least 45 days," the official said.

Indicating that bidders were scared to invest due to the recession, the official stated that for the last 15 days, interested parties were seeking an extension. "Companies such as Hyundai and Hindustan Construction Company sought an extension," added the official.

The parties also wanted conditions in the bid documents for the bridge connecting Sewri and Nhava-Seva revised.

"Some wanted 30 to 40% payment in dollars. Most of the technology will be foreign and technicians will also be foreigners. Naturally, they expect payments in dollars," another official said.

Besides the slowdown, he said bidders had not turned up also because most were preoccupied. "Many are feeling the pressure of ongoing projects. The sealink project will require huge investment initially. This could be a cause for worry," the official added.

Ninad Siddhaye/ DNA-Daily News & Analysis Source: 3D Syndication