The state government has already stated that a viability gap funding of Rs 70 crore was required to kickstart the project. After being mired in red-tape and objections for 20 years and having rejected the proposed site near Radio Club, the MSRDC has proposed the construction of the passenger water transport terminal north of Radio Club, a spot near Gateway of India from where ferries for Alibaug/Mandwa depart now.

The project, which was discussed with the high-powered committee of the state government, has almost been approved and it now awaits the permission of the Mumbai Port Trust (MbPT). The matter will be discussed at a meeting with the trustees in the month-end.

“We have received a proposal from the MSRDC and we have requested a presentation on this new plan and change of location. If the terminal is to be constructed on the north side of the Radio Club near Gateway of India, then it can be only done by demolishing the heritage stone parapet wall,” said Port trust chairman Rahul Asthana.

“However, permission will be granted only after a detailed study. Moreover, if the wall has to be demolished then it will also require sanctioning of the heritage committee.”

The MSRDC officials confirmed the site location, but refused to divulge more.

According to the proposal, the project will have a terminal building, roads, bus bays, pavements and walkways. It will provide the facility of hovercraft and catamarans for passengers. It will take 18 months to be completed.

Though some trustees of the MbPT have raised objections that the new site will affect traffic of the proposed International Cruise terminal at Jamshedji Bunder near Oyster Rock, the MSRDC officials claim that the project will not have any major effect on it. The corporation has already invited bids for the project and tenders for the same will be opened on June 30. It plans to carry out the project on BOT basis and has requested the MbPT to charge only a nominal lease rent for the area.

However, the proposal has created a storm among heritage conservationists. The Urban Development Research Institute (UDRI), which had in 2004 carried out a detailed study on the eastern waterfront and its development, says the site near Gateway is not feasible. “There is no space for parking or approach road to the terminal. Moreover, it will destroy the heritage and beauty of Gateway. The parapet wall is an integral part of the monument and it cannot be demolished for the terminal,” said architect and UDRI planner Pankaj Joshi.

According to the UDRI report, the terminal should be developed at the northern shore near Bhau Cha Dhakka or Dockyard Road that has ample space and potential along with parking facilities and approach road.

Heritage conservationist Sharada Dwivedi said the move will be disastrous for the city. “Gateway is a Grade I structure. The marina will completely destroy the beauty of this precinct,” she said.