Nod for Virar-Alibaug corridor with ₹2524-cr cost escalation

According to the GR issued on Thursday, the total project cost of ₹31,793 crore includes construction cost at ₹21,533 crore, cost escalation at ₹2,524.84 crore, GST on construction work at ₹4,330 crore, and interest during construction at ₹2,268 crore

Mumbai: The state government on Thursday gave administrative approval to the Virar-Alibaug Multimodal Corridor with a cost escalation of ₹2,524 crore. The 126.06-kilometre corridor will now be built by the Maharashtra State Road Development Corporation (MSRDC) at a total cost of ₹31,793 crore, and work will be completed by 2029-end, the government resolution (GR) issued on Thursday said.

Nod for Virar-Alibaug corridor with ₹2524-cr cost escalation

The proposed corridor, which will pass through 104 villages in the Vasai, Bhiwandi, Kalyan, Ambernath, Panvel, Uran, Pen and Alibaug talukas, will improve connectivity between the Jawaharlal Nehru Port Authority, the Navi Mumbai International Airport and the Mumbai Trans Harbour Link, while also easing traffic congestion across the Mumbai Metropolitan Region (MMR).

In the first phase, construction will be undertaken on a 96.41-km stretch from Mauje Navghar in Vasai on National HIghway (NH) 48 to Mauje Balavali in Pen on NH 66.

The multimodal corridor was initially planned by the Mumbai Metropolitan Region Development Authority (MMRDA). But in August 2020, the state government decided to transfer the project to the MSRDC while giving the MMRDA the Thane-Borivali twin tunnel project in return.

According to the GR issued on Thursday, the total project cost of ₹31,793 crore includes construction cost at ₹21,533 crore, cost escalation at ₹2,524.84 crore, GST on construction work at ₹4,330 crore, and interest during construction at ₹2,268 crore.

Speaking to Hindustan Times, MSRDC managing director Anil Kumar Gaikwad said that contract conditions include the cost escalation clause.

“During the project completion time of around three years, cost of construction increases due to various factors. With that consideration, contract conditions include cost escalation of around ₹2,524 crore,” Gaikwad said.

Land acquisition process for the project was ongoing and would be completed soon while the tender process would be started by the monsoon, Gaikwad said.

A three-member review committee comprising officials from the roads and buildings department, finance department and planning department would monitor the project.