Rs 14,000 Crore Thane-Bhayandar Mega Infra Projects: MMRDA Scraps Bids After SC Scrutiny

The Mumbai Metropolitan Region Development Authority (MMRDA) informed the Supreme Court on Friday (30 May) that it has cancelled two tenders issued for the Thane-Ghodbunder to Bhayandar tunnel and elevated road projects worth over Rs 14,000 crore, Indian Express reported.

Appearing for MMRDA before a bench led by CJI B R Gavai, Senior Advocate Mukul Rohatgi said, “We have decided to scrap the two tenders. The government will decide the next steps".

Taking MMRDA’s statement on record, the Supreme Court bench disposed of as “infructuous” the pleas by Larsen & Toubro (L&T) Limited that challenged the 20 May Bombay High Court order.

The high court’s vacation bench had refused relief to L&T in its pleas challenging the opening of financial bids for the two projects.

“Solicitor General Tushar Mehta and Senior Advocate Mukul Rohatgi appearing for MMRDA fairly state that the state (MMRDA) has decided to scrap the entire tender process in the larger pubic interest and take such steps as are advised. In that view of the matter, petition is rendered infructuous and disposed of as infructuous,” the bench said in its order, as reported by IE.

L&T alleged procedural irregularities, stating it was left uninformed about its bid status even as others were updated.

Its legal team included senior advocate Kapil Sibal, Abhishek Singhvi, and others.

The two projects are proposed to link Thane and Mira-Bhayandar. One of the projects consists of a 5-km twin tunnel of 14.6-metre diameter from Gaimukh to Fountain Hotel Junction at Shilphata, worth Rs 8,000 crore.

The other project, an elevated creek road bridge of 9.8 km, estimated to cost nearly Rs 6,000 crore, will connect Bhayandar with Ghodbunder Road in Thane.

The two projects are part of an extension of the Mumbai Coastal Road project and the elevated bridge is likely to be the second largest after the Mumbai Trans Harbour Link (MTHL) bridge, also called Atal Setu.

The MMRDA's move followed the Supreme Court asking the authority on 26 and 29 May whether the authority was willing to carry out re-tendering process for the two major projects and had warned that failure to do so may lead to the court staying the present tenders.

The court expressed difficulty in accepting that L&T — the company which was selected to execute the Central Vista Project in Delhi — had been rejected for the projects linking Thane and Bhayandar.

The top court was informed by L&T that MMRDA had arbitrarily declared Hyderabad-based Megha Engineering and Infrastructure Ltd (MEIL) as L1 (lowest) bidder for both the projects, despite its bid being at a substantially higher cost compared to that of L&T.
The firm had argued that its price bid was nearly Rs 2,521 crore less than that of MEIL in the tunnel project, and Rs 609 crore less for the elevated road project.

MMRDA, however, maintained its rejection of L&T’s bid was based on “substantial” reasons.

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