16.8.13

Maharashtra to get Infra Dispute Resolution Authority

Concerned over the collapse of the bidding process in several big-ticket projects because of disagreements, Maharashtra Chief Minister Prithviraj Chavan directed the administration to set up a dispute resolution authority for infrastructure projects.
The new authority will be on the lines of regulatory authorities for the power and the telecom sectors and will work towards ensuring successful tendering and faster construction. Mantralaya officials said the authority would help the state tackle potential rows.
At the Maha Infra Summit held by the Maharashtra Economic Development Council, Chavan said there had been instances of disputes arising after the completion of tender procedures and the process had to be done all over again.
“Such a process is very tricky and consumes a lot of time,” he said. “There is a need to develop a dispute resolution mechanism that will tackle such issues.”
Chavan said he had instructed the chief secretary to set up a separate authority to resolve disputes affecting project development in a time-bound manner.
The state recently received a major jolt when shortlisted bidders did not go for the Rs.10,000 crore Mumbai Trans-Harbour Link project to connect Sewri and Nhava.
In his 40-minute speech, Chavan said the MTHL project would take off in the near future.
Saying there was a need to take a relook at present bidding systems, he said a conclave of industry experts would be organized in January to make necessary changes to attract investors.

IN THE SLOW LANE
Mumbai Trans-Harbour Link : The 22-km Sewri-Nhava link has a 2015-16 deadline but is yet to start as three tender processes have failed, one of them because of a feud between the Ambani brothers

Worli-Cuffe Parade sea link and coastal road : The deadline is 2015-16 for the sea link and 2020 for the rest. The tendering process is stalled. The first contract was scrapped after the state allegedly backtracked on providing a bank guarantee

Metro-I : 12-km Versova-Andheri-Ghatkopar link will offer east-west connectivity. The deadline was March 2012, but permissions and acquisitions delayed it. A 7-km stretch is likely to open by the end of the year

Metro-II : The elevated Metro will connect Charkop and Mankhurd via Bandra and Kurla. Construction work was supposed to start in 2010. There is a deadlock between the state and the contractor over various permissions

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