Govt nod to Phase-1 of Uttan–Virar Sea Link project

Mumbai Metropolitan Region Development Authority (MMRDA) is set to execute the project at a total cost of ₹58,754 crore

Mumbai: The state government on Tuesday issued a government resolution (GR), approving phase 1 of the Uttan–Virar Sea Link project. Mumbai Metropolitan Region Development Authority (MMRDA) is set to execute the project at a total cost of ₹58,754 crore.

Govt nod to Phase-1 of Uttan–Virar Sea Link project

Chief minister Devendra Fadnavis, in a recent cabinet committee on infrastructure, approved the redesigned Uttan–Virar Sea Link with a revised cost of ₹58,754 crores, reducing the cost by ₹30,000 crores. The new design had reduced the width of the sea link, ramp roads and overall construction, resulting in the reduction of the budget.

According to the GR, the sea link will have a total length of 55.12 km, comprising 24.35 km of the main sea link and 30.77 km of connector roads, with an estimated construction period of 60 months.

“The state government will provide ₹11,116 crore as an interest-free soft loan to support the Uttan–Virar Sea Link project. This includes ₹8,236 crore towards state and central taxes, ₹2,619 crore for land acquisition, and ₹261 crore for rehabilitation and resettlement. MMRDA will contribute ₹3,306 crore from its own resources, while the remaining ₹44,332 crore will be raised through external borrowings from bilateral or multilateral financial agencies. The project follows a 25% equity and 75% debt structure,” the GR states.

MMRDA has been permitted to charge tolls under a Dedicated Access Control system and also raise revenue through advertisements and commercial services, to repay the debt. Though MMRDA will be primarily responsible for repaying the debt, the state has agreed to accept contingent liabilities if required. A contingent liability is a potential financial obligation that depends on uncertain outcomes such as unpayable pending dues.

The Uttan–Virar Sea Link will be a crucial connector between Mumbai and Vadhavan port, linking Mumbai suburbs with the upcoming Vadhavan Port and easing traffic congestion across the western corridor.