Mumbai rail corridor hits a roadblock

A state support agreement (SSA), a mandatory condition for initiating such projects, is yet to be signed between the railways and the government of Maharashtra despite Prime Minister Manmohan Singh insisting on completing the process by December 21.

The SSA is an umbrella agreement, ensuring support from the state government for infrastructure projects. Bidders for PPP projects use the SSA as a pre-condition for their bids.

The bidding for the elevated rail corridor project was to be completed before the presentation of the Railway budget later next month. But sources said with delays in signing the state support agreement, meeting the deadline would be difficult.

Infrastructure giants such as L&T, Gammon Infra and GMR Infra have shown interest in the R21,000-crore project.

The project is presently in the pre-bid stage and some of the major infrastructure giants are keen on investing in the project.

“The state support agreement hasn't been signed with Maharashtra government. The state and local authorities have to provide land for the project and the developer would also need clearances for the development of commercial space so that the project becomes viable for him. The duration of concession agreement is also to be decided,” said a senior railway board officer.

“We have written to the Maharashtra government. They are working on the details of the agreement. It is

... contd.