Mumbai metro II project not to use PPP model
Metro project in IndiaMaharashtra Chief Minister Prithviraj Chavan confirmed on Friday that Mumbai's Metro line 2 has been cancelled because of the 'Build-Own-Operate-Transfer' (BOT) model's failure in metro projects and because there are major disputes over Metro I project.
Prithviraj Chavan said:
"There are some disputes between the government and the developer Reliance Infra (R-Infra) in Metro 1 project too. The developer is asking for tariff hike so we are considering all options including taking over the metro project."
Reliance Infrastructure is asking for an increase in tariff and advertising rights etc. One option is to go into arbitration and the other is to negotiate, said Chavan. If it gets worse, we may think of even taking over the Metro project.
CM Chavan said:
"There has been a lot of talk of late about Mumbai's infrastructure projects getting delayed. The problems are multi-fold. The latest is that we have received no bids for the Rs 9800 crore Mumbai Trans Harbour Link (MTHL). This is mainly because of the economic slow down and the lack of confidence among private players.
Contracts for the future phases of Mumbai Metro will not be given out on a build-operate-transfer basis and therefore will have to follow the EPC model.
Country news
-
-
September 03, 2013
TPG and AMP Capital in race to acquire Indian hospital
TPG Growth (a specialist fund of former Texas Pacific Group) and AMP Capital are in race to acquire about 49% stake in Kavery Medical Centre and Hospitals, The Times of India (TOI) has reported. Read more -
September 04, 2013
Reliance Infra completes BOT toll project in Tamil Nadu
Reliance Infrastructure said on Monday it has completed the widening of the 136-km Salem-Ulundurpet (SU) stretch of its Rs 1,061-crore (US$156 million) highway project in Tamil Nadu. Read more -
September 05, 2013
India approves DBFOT road project in state of Haryana
The Indian Cabinet Committee on Economic Affairs (CCEA) has given its approval for four laning of the Kaithal - Rajasthan border section of National Highway-152/65 in the state of Haryana, north India, under the National Highways Development Project (NHDP) Phase IV, on Design, Build, Finance, Operate and Transfer (BOT/DBFOT) basis in Build-Operate-Transfer (BOT) mode of delivery. Read more -
September 10, 2013
Larsen & Toubro wins US$200 million road PPP project in Odisha
Odisha Government approved the Rs 1292.56 crore (US$200 million) State Highway No.10 (Sambalpur - Rourkela) project on September 5th. Read more -
September 11, 2013
India launches PPP tenders for Chennai and Lucknow airports
The Indian Ministry of Civil Aviation has launched a Request For Qualification (RFQ) for the Operation, Management and Development of Chennai and Lucknow airports on Public Private Partnership (PPP) basis. Read more
