RInfra needs three more months for financial closure of sea link

The Worli-Haji Ali Sea Link has hit yet another hurdle. The Reliance Infrastructure (Rinfra) led consortium, which signed an agreement with the Maharashtra State Road Development Corporation (MSRDC) for constructing the Worli-Haji Ali Sea Link this June, has asked the MSRDC for three more months to complete the financial closure of the project.

Confirming the development, Minister for PWD (Public Undertakings) Jaidutt Kshirsagar said: "It is up to the company (MSRDC) board to decide whether an extension should be given to the consortium." The consortium has to pay Rs 1,634 crore by December 26.

The MSRDC board meeting has been scheduled on December 24. "This will straightaway delay the project by three months as the MoU with the consortium and MSRDC states the project has to be completed in 42 months, in June 2014. So the project would be completed September 2014," said an MSRDC official.

"There are various project prerequisites being worked out between MSRDC and Reliance. They are extremely critical for successful commencement and implementation of the project. RInfra has completed all necessary activities with the project lenders for the financial closure," an RInfra spokesperson said.

The consortium led by Reliance Infrastructure Ltd (RInfra) with Hyundai Engineering and Construction Pvt Ltd bagged the Rs 4,301-crore project to extend the Bandra-Worli Sea Link. According to conditions, RInfra would be able to collect the toll from BWSL once the consortium makes an upfront payment of Rs 1,634 crore to "buy it out" from the MSRDC.

The consortium will run both sea links for 40 years, including collecting toll, which will increase every three years. As of now, the toll is being collected by Mumbai Entry Points Limited (MEPL).

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