L&T, GMR & Rel Infra likely to bid for Mumbai elevated corridor project

Written by Rajat Arora | New Delhi | Updated: Dec 2 2012, 04:24am hrs
Infrastructure majors L&T, GMR, Reliance Infrastructure, Essar Infrastructure, SREI, Gammon, IL&FS, Feedback Infra and GVK are expected to bid for the R21,000-crore Mumbai elevated corridor projectIndian Railways first big-ticket public private partnership plan.

The countrys largest transporter is set to invite pre-qualification bids on Friday and sources said the initial response seemed encouraging with all major domestic firms and a few foreign players showing interest. Only six or seven big companies in India would meet our conditions. Since it is a global tender, we are expecting responses from big foreign players as well, said a senior railway officer. The project involves the construction of a 63-km-long elevated corridor connecting Churchgate in south Mumbai to Virar. The corridor will be used for an air-conditioned EMU service and it would be offered to the top successful bidder under the Design, Build, Finance, Operate and Transfer (DBFOT) basis. To make it viable for the concessionaire, development of real estate for commercial purpose at certain locations would be allowed.

We have signed a state support agreement with the Maharashtra government where the state would be providing all support needed to the concessionaire. The duration of the concessionaire agreement has not been decided as yet but it is expected to be around 30 years. Indicative capital cost of the project will be revised if necessary, the officer added.

The scope of work will broadly include design, financing, construction, operation and maintenance of the corridor along the Western Railways Churchgate - Virar section together with the real estate. The proposed corridor will also partially comprise underground and at-grade stretches, the officer added.

The railways has identified PPP investment of over R1 lakh crore in a number of areas including the Churchgate-Virar corridor project, high-speed corridors (Mumbai-Ahmedabad), redevelopment of stations and logistics parks, among others.