Mumbai: The government has approved the Bhayandar-Ghodbunder connectivity project, comprising an elevated creek bridge from Bhayandar to Fountain Hotel Junction and a twin-tube underground tunnel from Fountain Hotel Junction to Gaimukh, at an estimated cost of Rs17,036.03 crore.
Project Route and Length
The 15.44km project will be executed by the Mumbai Metropolitan Region Development Authority (MMRDA) under the build-operate-transfer model through a public-private partnership framework. The urban development department issued a government resolution on June 22 following the Cabinet Infrastructure Committee’s approval.
The approval comes nearly two years after MMRDA scrapped an earlier tender process that became embroiled in litigation. Larsen & Toubro (L&T) challenged the process before the Bombay High Court and later the Supreme Court. Both courts upheld MMRDA’s decision.
Approval After Legal Tussle
MMRDA had reportedly sought documents from L&T to substantiate its financial bid after the company quoted significantly lower than the qualifying bidder. The information was allegedly not furnished. The authority subsequently cancelled the tender and decided to initiate a fresh bidding process for the twin tunnel and elevated road project.
In May last year, MMRDA informed the Supreme Court that it intended to retender the project. It also said it was examining ways to reduce the base cost by nearly Rs3,000 crore to use public funds efficiently.
Revised Cost Matches Earlier Estimates
However, the June 22 order stated that government has approved the project at Rs17,036.03 crore. The revised estimate broadly matches, and in some cases exceeds, figures considered during the earlier tendering process despite cost-rationalisation efforts.
The project includes a 9.58km six-lane elevated creek bridge and a 5.86km twin tunnel, with three lanes in each direction. It is intended to create an alternative north-south corridor and ease congestion on the Western Express Highway.
The project will receive 40% viability gap funding, with the Centre and Maharashtra contributing 20% each. The balance will be mobilised through private investment and debt by the concessionaire.
An additional Rs713.94 crore will be required for land acquisition, rehabilitation and environmental management. The state has approved its VGF share of about Rs3,407 crore and authorised MMRDA to seek central assistance.
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