Versova-Bandra Sealink project cost up by whopping 60% to Rs 11,333 crore

PNT Reporter | Last Updated : 22nd Mar, 2023
Synopsis

The cost of the Versova Bandra Sealink, a major project of the Maharashtra government, has increased by 60% from Rs 6,993 crore in 2019 to Rs 11,333 crore. However, there has been very little progress on the project due to legal disputes. Certain parties have challenged the environmental clearance granted to the project, and the matter has reached the Supreme Court. The 17.7 km long project was expected to be completed by 2023, but the Maharashtra State Road Development Corporation (MSRDC) has now revised the deadline to December 2026.

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The cost of the Versova Bandra Sealink, a major project of the Maharashtra government, has increased by 60% from Rs 6,993 crore in 2019 to Rs 11,333 crore. However, there has been very little progress on the project due to legal disputes. Certain parties have challenged the environmental clearance granted to the project, and the matter has reached the Supreme Court. The 17.7 km long project was expected to be completed by 2023, but the Maharashtra State Road Development Corporation (MSRDC) has now revised the deadline to December 2026.



The cost of the Versova Bandra Sealink, a major project of the Maharashtra government, has increased by 60% from Rs 6,993 crore in 2019 to Rs 11,333 crore. However, there has been very little progress on the project due to legal disputes. Certain parties have challenged the environmental clearance granted to the project, and the matter has reached the Supreme Court. The 17.7 km long project was expected to be completed by 2023, but the Maharashtra State Road Development Corporation (MSRDC) has now revised the deadline to December 2026.



The project was originally awarded to a consortium of Reliance Infrastructure Ltd. and Astaldi of Italy in 2019 through a tendering process. Reliance - Astaldi JV was the L1 with a project cost of Rs 6,993 crore, while L&T and ITD Cementation were L2 & L3 with a cost of Rs 7,600 crore and Rs 7,300 crore, respectively. However, in 2021, Reliance Infra sold its shares to Astaldi, and APPCO, a Uttar Pradesh-based company became a new JV partner of Astaldi in the project.



The State Environment Impact Assessment Authority (SEIAA) had issued Environment Clearance (EC) in favour of the MSRDC in February 2017. Juhu Moragaon Machhimar Vividh Karyakari Sahkari Sanstha (JMMVKSS), a fish workers society in Juhu, challenged the EC granted to the sealink in the NGT's Western Bench, which quashed the petition in August 2022. Post that, the matter went up to the High Court, and the Hight Court also dismissed the petition. However, another petitioner filed a similar petition challenging the EC granted to the project in the NGT. The MSRDC has now approached the Supreme Court against the NGT taking up the same issue, which has already been settled by the High Court and NGT's Western Bench.



Solicitor General Tushar Mehta informed the Supreme Court that due to the inordinate delay; the cost of the project has gone up to Rs 11,333 crore, and MSRDC has filed a petition for urgent hearing. The project has been delayed due to legal disputes, and this has resulted in an increase in the project cost, which is a major cause of concern for the government.



The Versova Bandra Sealink is an important infrastructure project for the state of Maharashtra, and its completion will have a significant impact on the transportation sector of the state. The project is expected to reduce traffic congestion and improve connectivity between the western suburbs and the island city of Mumbai. However, the delay in completing the project has caused a lot of inconvenience to the public, and the increase in the cost of the project is likely to have a significant impact on the state's finances. The government needs to take steps to resolve the legal disputes surrounding the project and ensure that the project is completed within the revised deadline.



 

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