Virar-Alibag Corridor Goes BOT: MSRDC Ditches Costly Tenders After 36% Price Surge

The Maharashtra State Road Development Corporation (MSRDC) has decided to build the Virar-Alibag Multipurpose Corridor using the build-operate-transfer (BOT) model, according to a Lokmat report. This decision comes after the project's tender cost rose by 36 per cent, making it too expensive to proceed with the earlier plan. A proposal has been sent to the state government for approval, according to senior MSRDC officials.

Why This Corridor Matters

The 98.5-kilometres corridor will connect Virar in the north to Alibag in the south. Once completed, it will allow vehicles from Gujarat and North India to reach Jawaharlal Nehru Port Trust (JNPT) directly. This will help ease traffic congestion on roads from Thane and Palghar districts to Mumbai.

Deputy Chief Minister Eknath Shinde has taken a lead on this project. MSRDC will carry out the construction work, which includes road building and land acquisition. The total estimated cost of the project is Rs 66,000 crore, of which Rs 22,300 crore is set aside for land acquisition alone.

High Tender Costs Create Setback

In the first phase, tenders worth Rs 19,334 crore were floated to cover road construction across 11 packages. However, contractors quoted rates that were 36 per cent higher than estimated. This raised the project cost to Rs 26,300 crore, drawing criticism from various quarters.

Trouble In Securing Funds

MSRDC tried to raise funds for the project but faced another challenge. Banks refused to provide loans unless the state government agreed to share part of the cost. With this funding roadblock, the project could not move ahead.

To resolve this, Chief Minister Devendra Fadnavis suggested the BOT model. Under this system, private developers build the highway, operate it for a set period to recover their costs, and then transfer it back to the government.

Although MSRDC approved the high-cost tenders in its board meeting in August last year and forwarded them for final approval, the government has yet to give the green light.

This project remains crucial for better road connectivity and easing Mumbai's growing traffic burden, but its future now depends on how the state government responds to the revised proposal.