19.1.13

MTHL update


The Union finance ministry has approved a fund of Rs 1,920 crore for the Rs 9,630 crore Mumbai Trans-Harbour Link (MTHL) project which will connect Mumbai with Navi Mumbai via a 22-km sea bridge. This is perhaps the largest central funding for any project in the country and will pave the way for the appointment of a contractor to start construction for the project.
The central boost will turn the state’s goal of ensuring fast disposal of traffic, especially of heavy vehicles and cars, between Mumbai and Navi Mumbai into a reality.
“We hope to appoint the developer by May and start the construction work by the end of this year once all the funds are in place,” said metropolitan commissioner Rahul Asthana, adding, “All clearances for the project are in place. All that remains is the acquisition of 27 hectares of land. This is the ideal situation for the project to take off aggressively.”
The MTHL, the largest road project to be built on a public-private partnership (PPP) basis in the country, is likely to be ready by 2018-19. The developer of MTHL will have to build the bridge within five years of signing the contract and recover the investment through toll over the next 30 years.
Chief Minister Prithviraj Chavan said instructions have been issued to officials to ensure that the project is completed within the stipulated five year period.
The state expects 45,000 to 62,000 vehicles to use this bridge daily in 2019 and an annual increase of five per cent in the number of vehicles thereafter. The one-way toll for cars and heavy vehicles is pegged at around Rs 220 and Rs 1,060 respectively in 2019.
To ensure attractive bids, the Centre has modified the contract termination clause to allow the developer to continue to collect toll on the bridge even after it achieves its highest capacity of 1.5 lakh vehicles daily. “The toll collected from surplus vehicles (over 1.5 lakh) will then directly go to the government,” said sources.
Asthana said that the traffic police, if necessary, can route heavy vehicles through this bridge. Such a move will ensure more vehicles on the MTHL, thus making it a financially-attractive proposition for the developers. The Centre’s share of Rs 1,920 crore constitutes 20% of the project’s total cost. The state, too, has offered to pay 20% of the project’s cost. The remaining 60% will have to be arranged by the developer.

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