The Mumbai Metropolitan Region Development Authority (MMRDA) has informed the Supreme Court that it is scrapping both tenders for two high-value infrastructure projects in the Mumbai Metropolitan Region — the Rs 6,000 crore Mumbai Elevated Road Project and the Rs 8,000 crore Road Tunnel Project. The authority has left the decision on future steps to the Maharashtra government.
The decision was conveyed during a hearing on Thursday, May 30, after the Supreme Court asked the state to reconsider its bidding. The court is hearing a plea filed by Larsen & Toubro (L&T), which was disqualified from both projects and has challenged the decision.
What happened previously?
L&T approached the Supreme Court after the Bombay High Court upheld its disqualification on May 20, with Senior Advocate Abhishek Manu Singhvi arguing that the company’s financial bids were never opened and no reason for disqualification was communicated.
He further told the court that L&T’s bid for the Road Tunnel Project was Rs 2,521 crore lower than the selected bidder Megha Engineering & Infrastructure Ltd, and Rs 609 crore lower for the Elevated Road Project, amounting to a potential saving of over Rs 3,100 crore in public funds.
SC asks MMRDA to consider re-tendering
On Monday, the court had questioned the rationale behind L&T’s disqualification, saying it was difficult to believe that a company trusted with the prestigious Central Vista project was not technically qualified for the Mumbai infra works. The bench even hinted it could stay the process if MMRDA won’t consider rebidding.
On Thursday, May 29, the Maharashtra government sought an additional day to complete internal discussions on whether to re-tender, on which the Supreme Court further warned of potential risks, like the Uttarakhand tunnel mishap, that might happen if the bidding doesn’t occur fairly.
The Chief Justice said, “Just remember what happened to the Uttarakhand tunnel where 40 workers were trapped and then rescued. L&T is disqualified, and the person who is selected… you know…” To which L&T counsel Senior Advocate Abhishek Manu Singhvi responded, “Yes, enormous credentials.”
What are the two Mumbai infra projects?
The two projects are part of MMRDA’s major transport infrastructure expansion in the Mumbai Metropolitan Region:
- Elevated Road Project: A 9.8 km-long bridge over Vasai Creek, connecting Gaimukh in Thane to Bhayander, as part of the extended Mumbai Coastal Road.
- Road Tunnel Project: A 5-km twin tunnel with a 14.6-metre diameter under Thane’s Ghodbunder Road, from Gaimukh to Fountain Hotel Junction