MMRDA, MSRDC to jointly build Nhava sealink

Mumbai: The Mumbai Metropolitan Region Development Authority (MMRDA) will raise funds for the Rs7,600 crore Mumbai Trans-Harbour Link project, to be jointly executed with the Maharashtra State Road Development Corporation.

Announcing the decision after a meeting of the  state cabinet on Wednesday, public works minister Anil Deshmukh said the project would be completed within five years of the date of starting work.

The ambitious 22km road bridge connecting Sewree in Mumbai and Nhava Sheva in Navi Mumbai, will now have eight lanes instead of six, proposed earlier. The initial cost of the project had to be raised by Rs1,700 crore due to the addition of two more lanes in the original six lane plan, the minister said.

The project has environmental clearance from the central government and necessary security clearances from institutions like the BARC, the minister said

The state government, which earlier decided to scrap the bidding process, involving groups led by the Ambani brothers and decided to undertake the project on its own and appointed MSRDC as the nodal agency.

The government also considered options like the setting up of a special purpose vehicle for the project, but decided to involve MMRDA for raising funds and to ensure early completion of the project.

The MMRDA is expected to raise funds through debt from the World Bank or the Japan Bank for International Cooperation.

The government is yet to finalise plans for recovering the project cost, but has the option of levying ''toll charges'' on vehicles plying on this corridor, fixing ''improvement fees'' for Uran and Khopate areas, and the sale of ''development rights'' for the Nhava belt.

The betterment fees would be applicable to people in the impact areas - Uran, Panvel and Khopat. The development rights would be given to MMRDA as it is the financing authority, Deshmukh said.