Maharashtra State Road Development Corporation to scrap SeaLink contract with Reliance Infrastructure

MUMBAI: The Maharashtra State Road Development Corporation ( MSRDC) today said it would submit a report to the state government seeking to terminate the contract with Reliance Infrastructure (RInfra) for its ambitious Worli-Haji Ali Sea Link project in Mumbai.

"We will submit the proposal to the government to cancel the contract with RInfra for the project," an MSRDC official said.

The MSRDC board which met today decided to go ahead with the recommendations made by retired Justice B P Singh, who acted as a mediator between the government and the company and stated that RInfra should be allowed an exit from the contract.

More recently, Attorney General G E Vahanvati had sent a letter to the MSRDC, recommending an amicable termination of the agreement with the company without any monetary liability on either side.

There was a lingering dispute between MSRDC and RInfra over how to take the project forward.

When contacted, RInfra spokesperson declined to comment.

In June 2010, the MSRDC had signed a concession agreement with RInfra to build the sea link but the project was stalled due to differences between the two parties over issues including the viability gap funding, handing over of the casting yard and completion of formalities before beginning construction.