GST effect: Mumbai trans-harbour link bids will come down by 6%
The 22-km MTHL will link Mumbai and Navi Mumbai through sea, connecting the city to the Navi Mumbai International Airport.mumbai Updated: Oct 24, 2017 23:19 IST
The revision in goods and services tax (GST) for construction work from 18% to 12% is likely to bring down the bid amount for the Mumbai Trans-Harbour Link (MTHL) project from Rs14,264 crore to Rs13,400 crore, say MMRDA officials.
The 22-km MTHL will link Mumbai and Navi Mumbai through sea, connecting the city to the Navi Mumbai International Airport.
The construction of the link has been divided into three parts. The first two packages are for the sea-bridge, while the third is for the construction of a road up to Chirle in Raigad district.
The Mumbai Metropolitan Region Development Authority (MMRDA) had estimated the civic construction cost for all three packages at Rs14,137 crore. The lowest bid for the three packages was Rs14,264 crore, according to MMRDA data.
UPS Madan, metropolitan commissioner, MMRDA, said, “The bids will come down by 6%.”
The amount, however, does not include other components such as forest diversion costs and compensation for fishermen.
Officials said that they are now in the process of finalising the tenders and the project will be presented before the executive committee for approval soon.
Construction giants Larsen & Toubro (L&T) with IHI Corporation Japan, and Tata Projects with Daewoo Korea are frontrunners to bag the sea bridge parts. Japan International Cooperation Agency (JICA) will fund 85% of the project cost.
The project has been on the drawing board since 1980s. When it was first mooted in the mid-1980s, its estimated cost was Rs350 crore.
First Published: Oct 24, 2017 23:19 IST