Reliance Infra gets contract for 2nd Mumbai Metro line

Reliance Infra gets contract for 2nd Mumbai Metro line

Bangalore: Aconsortium of the Anil Ambani-led Reliance Infrastructure Ltd and Reliance Communications Ltd, and Canada’s SNC-Lavalin has won the contract for the Rs11,000 crore Mumbai Metro II project to link Navi Mumbai and Charkop and Mankhurd in suburban Mumbai.

Reliance Infrastructure, which is also building the 11km-long, Mumbai Metro I project along Versova-Andheri-Ghatkopar in suburban Mumbai, was the sole bidder for the project.

In May, the consortium had submitted a bid of Rs2,298 crore, which is the grant that it would need from the state and Central governments for the project.

The bidder of the project, which will be built through a public-private partnership model, was entitled to get a maximum of Rs3,064 crore and Reliance Infrastructure’s bid was substantially less than that.

“We have to form a special purpose vehicle for the second line and then sign the concession agreement within 45 days. We are also completing the Mumbai Metro I ahead of schedule, by September 2010," said K.P. Maheshwari, senior vice-president of Reliance Infrastructure.

Once complete, the second Mumbai Metro line will carry around 1.2 million passengers every day. The 32km Metro corridor is also the longest in the Metro network in the city and will be completed in five years.

The letter of intent was handed over to the winning bidder late on Monday night after the executive committee of the Mumbai Metropolitan Region Development Authority approved it.

The six bidders who were earlier in the fray were Reliance Industries Ltd, a consortium of GVK Group and Bombardier Inc., a consortium of Tata Power Co. Ltd and Mitsubishi Corp., a consortium of GE India and Larsen and Toubro Ltd, a consortium of Infrastructure Leasing and Financial Services Ltd and Punj Llyod Ltd and a consortium of the Essar Group and Alstom. However, the Reliance Infrastructure consortium was the only one that made a financial bid.