Economic: Rs 480 cr unpaid

As the dust settles over the euphoria over the inauguration of the Bandra-Worli Sea Link,the clock is ticking for the Maharashtra State Road Development Corporation (MSRDC) which will have to overcome a serious financial crunch to cough up pending bills for the construction.

As the dust settles over the euphoria over the inauguration of the Bandra-Worli Sea Link,the clock is ticking for the Maharashtra State Road Development Corporation (MSRDC) which will have to overcome a serious financial crunch to cough up pending bills for the construction.

Of the bills submitted by contractors Hindustan Construction Company (HCC),Rs 480 crore remains outstanding. Vimal Mundada,Public Works Department Minister,admitted,Three bills are still to be cleared. The contractor has to be paid Rs 480 crore,which will be paid at the earliest.

When contracted,the cost of the 4.7 km bridge (part of the package IV of the BWSL contract) had been estimated at Rs 400 crore but,till the last estimates,delays had escalated the cost to Rs 852 crore. The changes in the bridge design soon after the contract was signed on October 1,2000,set the course for a series of disputes over cost. As such,it is unlikely that the entire pending amount of

Rs 480 crore will cleared without an argument.

Mundada is pinning her hopes on financial assistance promised by Chief Minister Ashok Chavan. The Chief Minister has assured that they would look into the issue; possibly with a financial package, she said.

When Newsline contacted HCC officials,they refused to comment on the outstanding bills.

In July 2007,HCC had nearly thrown in the towel following disputes with MSRDC on the issue of payment. This time,the MSRDC is confident that the bills will be cleared soon and work on the second carriageway,expected to be completed by the year end,will not be hampered.

According to sources,the cash-strapped road development corporation has to recover Rs 2,300 crore from the state government. Sources also add that MSRDC has stopped payment of contractors for several projects across the state and unless grants from the state government are extended,major projects could be in jeopardy.

Bill and breakup

Rs 1,634 crore: Overall project

Rs 580 crore: Government grant

Rs 150 crore: MMRDA loan

Rs 500 crore: Bank loans

Rs 76 crore: From bonds

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Rs 328 crore: Escalation,no decision yet on how to raise it

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