Chittaranjan Tembhekar

Mumbai: The Maharashtra State Road Development Corporation (MSRDC) on Thursday deemed as invalid the winning bid of the Anil Ambani-led consortium for the Mumbai Trans Harbour Link (MTHL), better known as Nhava-Sewree sea link. "Anil Ambani's bid is invalid.

We have conveyed this to the state government. Now whether to re-tender, do the project on our own or ask the next bidder (Mukesh Ambaniled consortium) to take over the project will be decided in the next meeting," MSRDC minister Anil Deshmukh told DNA.

This will further delay the project, the estimated cost of which has already gone up from Rs4,000 crore to Rs6,000 crore after two years of legal battles between the two warring brothers.

The MSRDC board concluded that the consortium did not respond positively to its request to extend the bill validity period that expired on June 15.

What started it all was the promise made by the consortium to complete the project and recover its cost within 10 years. This was considered "unrealistic" by a MSRDC subcommittee comprising experts and engineers.

Anil had outbid Mukeshled consortium of SKIL-IL&FS and John Laing Construction and Laing O Rourke Holding of the UK, which had quoted a period of 75 years for construction and recovery of the cost as against Anil's 10 years.

The cabinet then asked the MSRDC to study Anil's bid before taking the final decision and also suggested several options.

Now, if the contract is awarded to the Mukesh Ambani-led consortium, it could result in a long court battle.

REL sources said the bid could not be awarded to the next competitor -Mukesh Ambani - unless his consortium matched their bid. MSRDC sources had a different take on the issue -they said it would not be illegal to invite the Mukesh-led consortium.

Now, the MSRDC will have to pay back the Rs26 crore deposited by REL as guarantee money. The MSRDC will also pass on its report to the highpower committee on infrastructure led by chief secretary Johny Joseph and the cabinet subcommittee of the state that will give its final decision next week.

Joseph told DNA that the final decision would be taken only by the chief minister-led cabinet subcommittee.

Source : DNA