Mumbai: The recession is hurting the infrastructure of Mumbai beauty. Recently, not one of the seven consortia, including top global companies, have to bid for the contract to build the Rs 7.660 crore for the second metro line between Charkop and Mankhurd via Bandra. And Friday, and leading Indian infrastructure companies fought shy of calling for tenders for the Rs 6000 crore, 22-km Mumbai Trans Harbor link from Sewri Nhava, save the state government in a spot.
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This, despite the Mumbai Metropolitan Region Development Authority (MMRDA) promises 100% payment to be candidates. "Nobody wants to take the new project, they believe that additional work is a great risk in times of recession,''said Maharashtra State Road Development Corporation (MSRDC) chief engineer Subhash Nage, who waited all day Friday for bidders. Thirteen companies had purchased application forms, but none were for their presentation.
Troubled Waters
It was rough sailing for the project. During the first calls for tender in 2005, Anil Ambani MSRDC disqualified the consortium, and it went to court. The Supreme Court ruled in his favor. But in the final phase of the tender, the cost of its reorganization plan has been deemed "impossible". Brother Mukesh bid has also been abandoned because the runner-up could not be attributed to the project. Also controversial was the release of China Harbor Engineering. The state decided to fund the project and called for new tenders for construction without investment. But none of the bidders are presented. "All major projects in the city to suffer because of the ecological crisis"
Mumbai: After the deadline for bids for the Sewri trans-port of Nhava link past without bids, officials said they expect all major infrastructure projects in the city to deal with problems until that the global financial crisis is over.
"Despite the deadline for submitting bids was extended by two and a half months, each of them (the companies that had bought for submission of application forms) requested a further extension, which seems impossible today, hui. Now we MMRDA and jointly make a decision on the extension,''said Maharashtra State Road Development Corporation (MSRDC) chief engineer Subhash Nage.
When the deadline for submission passed Friday afternoon, officials from Bandra MSRDC office announced there was not even offers of 13 companies, including Hyundai, Samsung, Gammon, HCC, China Harbor Engineering (which built a relationship of 32 km of sea in China), L & T, Saudi Binladin Group and Ascon had purchased the bid documents earlier.MSRDC CEO Satish Gavai said that his organization will focus on issues of MMRDA, which is financing the project, and "find a way to save the situation.''He said in May it not be possible to extend the deadline for submission of two months.
MMRDA commissioner Ratnakar Gaikwad trust said: "We will examine the various models to resume this project.''
Industry observers say the global crisis has made major Indian and foreign prudent to support large projects that need funding. "In this case, there was also the issue of demand companies change MSRDC to cover up to 40% of project cost in dollars to enable them to pay the cost of labor, materials and advice from abroad'', said one industry analyst.
Given the uncertainty in the global financial system, firms MSRDC wanted to respond to the component of change. The project has been discussed for more than three decades before it began to take shape three years ago. The government's first plan to develop Mumbai Trans Harbor link on a "build-operate-transfer base''a had difficulty competing with the Ambani brothers are the last two contenders. The government then decided to build its own funds on a cash basis, but this is easier said than done.
Where tenders have been launched, the MSRDC had to extend the last date of December 15, 2008 to February 2009. It did not work either.
MSRDC officials said they had received requests for extension of time Hindustan Construction, Hyundai and other companies. "Things turn positive in May if they have the right to three months, since it is an alteration international financial crisis'', they said, while stressing that it was d a "feasible project.''Industry analysts said that the project was ambitious, and that only a few companies in the world can undertake successfully.
The link trans port was to play a crucial role in the growth of services and industries in the hinterland through the port. Its aim is to decongest Mumbai by connecting it to the next SEZ and Navi Mumbai. Finally, the transmission link will also be parallel port and rail connectivity between Sewri Nhava.
