Mumbai: Coined as the game changer for Maharashtra, the first phase of 520 km between Nagpur and Shirdi of the 701 km Mumbai Nagpur Samruddhi Mahamarg will be opened on Sunday. In an exclusive interview with Sanjay Jog, the Maharashtra State Road Development Corporation VC&MD Radheshyam Mopalwar speaks at length about the project
Q: Can you tell us from concept to commissioning how the project has moved? What challenges did MSRDC overcome during the development?
A: It is now five years down the line after we actually started the entire exercise specially after the DPR, the tendering was launched. Before the tendering, adequate care was taken that there should be reasonable assurance that land acquisition will be done in a defined time frame otherwise there will be a lot of claims from contractors that makes the project implementation complicated.
First priority of the government was that the land be acquired and acquired peacefully. For the first time in the country a record 20,000 acres was acquired for a linear project. We went ahead. We took the approach of involving people in dialogue from all along 329 villages and 701 km. We had to interact with 33,000 families. We created a communication office, deployed boys and girls who had done masters of social work and were good at communication. Idea was to tell the people that the project will not harm them but benefit them. Fortunately, we were able to communicate this to people.
Of the total land, 96% of land was acquired by consent, 4% had to go through legal processes as there were legal issues and it was not possible to obtain the consent that was the big challenge.
Second challenge was the environment as you have one single expressway that goes from various topographies, land ownerships like forest land, revenue land, various projects and departments including irrigation, water supply, electricity. All those challenges were tackled. After some time, we encountered two gas /petrol pipelines passing through the area.
Before we could start project development, we saw to it that we comply with all regulatory requirements like environment clearance. We got the environmental clearance. However, it was tough to get the forest clearance as it was going through the sanctuary. We later realised that it was not going through that. But there is a forest, we focused on clearances and hired retired forest officers.
Getting competent contractors was another issue, contractors who have good track record and profit making as we did not want to be stuck in a situation where we appoint contractors and they do not have resources, financial or manpower or experience. All those issues we tackled in 2018. From January 1, 2019 we started the journey. It was a great journey.
When COVID came in 2020 there were 40,000 workers engaged in the construction activities, when the Ghar Vapsi started people were required to be sent back to their states. By and large, skilled labour comes from UP, Bihar, Jharkhand, Assam, Bengal that did affect us adversely. From 40,000, the strength came down to 20,000. The worst part was not the first phase of COVID, it was the second-wave where manpower was there but there was an oxygen shortage that was quite severe in March, April and May. Majority of cost is incurred on structures and for that oxygen plays a crucial role. Had COVID not been there we would have completed the entire expressway at least six months earlier.
Q: Successive governments have claimed that the Samruddhi Mahamarg will boost development of the state. How is it possible?
A: Today 65% GDP comes from Mumbai, Pune and Nashik which is known as the golden triangle. Maharashtra’s entire development, creation of jobs is concentrated here. Rest of Maharashtra does not have that advantage as it was leveraged by the golden triangle.
Marathwada, Vidarbha and Eastern Maharashtra always have to stay away from fruits of development. This is despite the fact that 90% of resources like forest, paper, cement, steel are in Vidarbha. More than 60% power is produced in this region. Despite all this, it was difficult to bring industry, create jobs due to the absence of connectivity.
After the manufacturing revolution there was an IT revolution since the skill sets are in demand in western Maharashtra or in Mumbai-Pune belt. There is a migration of people from this part to other parts.
However, with the commissioning of the expressway, travel times will be reduced to 6-7 hours and 10 districts will be connected with Mumbai by an access controlled expressway.
The expressway will provide connectivity to various districts and Mumbai. 2/3 Maharashtra will be covered by this expressway. It was even difficult to post government officers because they felt that the area is so remote. Now if you are going to reach Nagpur in 6-7 hours and in the remote areas where it was earlier difficult to go, the areas are being opened that will encourage industries and job creation.
There will be completely new geography as we expect a lot of activities specially manufacturing which will be taking shape in eastern part of the state in Pune and Nashik. Drone venture is coming up in Aurangabad while defence in Vidarbha.
This area caters to almost 60% of farm products, food processing, warehousing, logistics, and cold chains. The expressway will be able to sort out issues faced at present for development of these businesses.
It is truly a game changer as even before the commissioning of this project we are discussing connecting all the districts. The government has already announced Nagpur Goa expressway, we have announced connecting Gondia, Gadchiroli, and Nanded so that the entire Marathwada will be connected.
In addition there will be connectivity between Aurangabad and Pune up to Bangalore. The Surat Chennai expressway that is passing through Nashik, Ahmednagar, Beed Osmanabad and Solapur. With these transport infrastructure, the opportunities will be harnessed and further opportunities will be created. So, it is not just a topic of discussion but something that will be converting into reality.
At some interchanges, new towns called Khushi Samruddhi Kendra are being set up along the route. As on date, the government has notified 18 sites for development of such towns. It is proposed to set up skill development centres, state of the art healthcare amenities, educational institutions, and IT parks and agro-based industries that will provide jobs, self employment and other opportunities to help the farmers to augment agricultural income. It is expected that the expressway will spur development hitherto untapped geography which will create employment for around 5 lakh persons. The second phase of nearly 180 km is expected to open by July 2023.
Q: Can you give us details on the project cost? How were the funds mobilised?
A: This is a toll-based project and all expressways are built through this. Big assets of such a size cannot be developed through state revenues as it has to be used on a fee-based model, users have to pay for such projects but sovereign responsibility was to acquire land to provide all assistance along with regulatory clearances. Toll rate is Rs 1.72 per km, when you enter the road you will be entering expressway hassle-free at all entry points. The toll will have to be paid only on exit points.
Of the total project cost of Rs 55,335 crore, the state government contributed Rs 27,000 crore towards equity, while the MSRDC raised debt worth Rs 28,000 crore that is to be repaid over 25 years with a concession period of 40 years.
We are now realising that after two years the traffic is stabilised we may go for InvIT that owns, operates, and manages operational infrastructure assets. These long-term revenue-generating infrastructure assets, in turn generate cash flows. This will help us to pay back the entire debt right away.
Earlier there used to be a vicious cycle of no resources, no infrastructure, no productivity, no taxes, no resources. However, that will be converted into a virtuous cycle when we create infrastructure. It creates resources which are ploughed back in new infrastructure that creates another opportunity for more resources. So this is a virtuous cycle which will now come into play.
Q: What was the raw material that was required?
A: Volume that matters. There were about 5000 machines that were required, 40,000 workers, cement and steel. There was adequate stock, the only thing that was important was prices have stiffened. The challenge was the surge in prices from Rs 36,000 per ton to Rs 65,000 per ton plus minus. However, it was a fixed cost contract non-adverse impact was felt. Fortunately entire expenditure on structures will have to be done first. Despite the pandemic, structures got deployed.
Q: What efforts have gone in to address concerns over damage to the environment?
A: During the planning stage, we roped in the Wildlife Institute of India (WWI). We were quite clear on one thing that whatever we do, we should not have an adverse impact on the environment, Natural habitats, wildlife. The adequate attention was made since beginning on how to mitigate the impact and how it will be addressed through a slew of measures. MSRDC implemented mitigation measures suggested by the Wildlife Institute of India. Of course, there were cost implications as MSRDC has to spend additional Rs 350 crore. We took it into our side and spent that money.
First one and half years WWI conducted study across the entire stretch and they classified it in focus and non focus areas. Although there is no sanctuary, there is still wildlife. We have fully implemented suggestions made by the state wildlife board and WWI which MSRDC has taken on board for monitoring for next 7 years.
They suggested 84 structures for the easy movement of wildlife across the length of the entire expressway. They suggested over passes at 8 places and 76 underpasses. We have actually constructed more
They had suggested that we should have 60 meters wide 200 ft overpasses with the plantation natural species and not exotic species. The idea was that the animals should feel that they are passing through their habitat. We have already set up camera traps all over and under passes. The Government of India has hailed our model and it is now being implemented elsewhere also.
Q: How MSRDC focused to ensure quality and safety?
A: Everything that needs to be done for perfect engineering has been done. MSRDC joined hands with the Indian Road Congress and complied with the necessary standards.
Before 6 years, MSRDCnever thought of ambulances here. We have tied up with 108 and own infrastructure so that they can be used during that crucial golden hour period (post accident). Besides, MSRDC has tied up with South Korea for the deployment of the Intelligent Traffic Management System. Every inch of the expressway is under CCTV scanner. Adequate patrolling will be done on the expressway
There will be amenities every 50 km which will take two to three years to come up.It is a long term, as the footfalls grow those facilities will take place.
By and large, MSRDC followed a rigorous mechanism to ensure quality and safety. We are reasonably confident that we have created a road of quality and it would improve, cannot do down.
