Mumbai wishlist handed to PM

The Prithviraj Chavan-led government told PM Manmohan Singh that four projects that could promote Mumbai’s image as an international city should be declared “projects of national importance”. Worth Rs 50,000 crore, they have the potential to transform the Mumbai Metropolitan Region. If tagged nationally important, the state can seek 90% of the projects’ cost from the Centre. Currently, only irrigation projects are eligible for the label. Chavan feels it should be extended to vital infrastructure projects in the nation’s financial capital, like the Sewri-Nhava Trans-Harbour Link (Rs 10,000 crore), the Navi Mumbai Airport (Rs 14,000 crore), the Colaba-Bandra Metro (Rs16,000 crore) and the Virar-Alibaug Multi-Modal Corridor (Rs 10,000 crore). Saying he understood the “special needs” of the MMR, Singh reportedly assured support. He asked the state to make a presentation on the projects and the concept of giving them a ‘national tag’ for the Planning Commission and National Development Council. The state made three presentations to him at the airport before he flew to Pune. State officials argued that these projects would not benefit Mumbai alone, but the entire country. They said development in cities and towns around Mumbai as well as the hinterland would get a boost. The projects would essentially improve connectivity within and around Mumbai. The state also wants the “national project” tag for the Pinjal-Damanganga River Linking project, a multi-crore project for the sharing of two rivers between Maharashtra and Gujarat. Officials said these projects were difficult to implement under Public Private Partnership (PPP). Attempts to set up the trans-harbour link under PPP failed. As per a feasibility report, the state would have to pay 60% of the Rs 16,000-crore cost of the underground Metro as Viability Gap Funding (VGF) under PPP. At present, even the Centre does not provide VGF assistance of over 40%. Officials said there was also a feeling that such expensive projects were better suited for tendering. With the Centre set to pass the new land acquisition bill, which proposes that compensation to landowners be increased to six times the market value, officials said the development of the new airport and the multi-modal corridor were difficult under PPP. Chavan also asked Singh to consider setting aside a dedicated allocation for Mumbai and other mega cities in the proposed new version of the JNNURM. A request to relax the VGF norm of 40% was made. Chavan also demanded special dispensation for housing in Mumbai. The Centre was asked to make available centrally owned lands for implementation of the slum-free agenda and infrastructure projects. Sources said the Congress was presenting a “development-oriented” face ahead of the civic elections. During the PM’s last visit, the demand to declare certain projects as being of national importance was also made, an official said.