The Maharashtra State Road Development Corporation (MSRDC) has decided to cancel 11 construction contracts worth Rs 26,300 crore, which were awarded by the Eknath Shinde government for the first phase of the Virar–Alibaug Multi-Modal Corridor (VAMMC) project. These contracts, initially granted to seven civil engineering firms for the 96.47 km stretch, were awarded under the Engineering, Procurement and Construction (EPC) model. MSRDC now plans to issue fresh tenders for the entire corridor under the Build-Operate-Transfer (BOT) model.
The Virar–Alibaug Multi-Modal Corridor, a long-awaited infrastructure project, has been in the works since 2011. Initially intended to be developed by the Mumbai Metropolitan Region Development Authority (MMRDA), it was transferred to the MSRDC in 2020. The motorway, which will span 8–14 lanes, will connect the districts of Raigad, Thane, and Palghar, aiming to ease congestion in the Mumbai Metropolitan Region.
The project is divided into two phases: Phase 1, a 96.41 km highway from Navghar near Vasai to Balavali near Pen, and Phase 2, a 29.9 km stretch from Balavali to Alibaug. However, the project faced a setback when the first-phase bids exceeded the estimated cost by 36%.
In May 2024, MSRDC split the tender into 11 packages, and seven companies—Larsen & Toubro, Navayuga Engineering, Oriental Structural Engineers, IRCON International, J Kumar Infraprojects, Megha Engineering, and Welspun Enterprises—emerged as the lowest bidders. Despite a quoted price of Rs 19,334 crore, the final contracts were awarded at Rs 26,300 crore.
Under the leadership of Chief Minister Devendra Fadnavis, the government is now reconsidering the tender process, with plans to switch to the BOT model. This model allows a private entity to finance, design, construct, and operate the infrastructure, recovering its investment through tolls or user fees. MSRDC is also focused on land acquisition while awaiting the government’s response to the proposal. The total cost of the 165-km corridor is pegged at Rs 66,000 crore, with Rs 22,300 crore allocated for land acquisition.
Source: The Indian Express
