Only one bidder for toll collection on sea link

Turnover

MSRDC plan to securitise collection has few takers; will call for tenders again.

Efforts of cash-strapped Maharashtra State Road Development Corporation (MSRDC) to get money upfront by securitising toll collection at the landmark Bandra-Worli sea link on a yearly basis have drawn a blank.

Despite giving an extension of a month to prospective bidders to fill the tender, MSRDC has received only one bid that could qualify as per the bid criteria, that too from Mumbai Entry Point Limited, the company presently in charge of collecting toll at the sea link.

The corporation has now decided to re-tender the contract for collection of toll for three years on the sea link on a yearly upfront basis to raise Rs 238 crore.

"We are in the process of issuing a new tender for the contract. Although three-four companies that attended the pre-bid meeting for the contract, only two companies submitted their bids. Subsequently, only one qualified. We didn't open the financial tender at all because there was just one bid," said an MSRDC official.

The second bid was by Konark Infrastructure and could not qualify as per MSRDC's criteria, which included parametres like the bidder's annual turnover and total experience in toll collection, the official added.

Incidentally, this is not the first time that Konark Infrastructure is bidding for toll collection on the sea link. The company had put in its bid in 2010 when MSRDC was in the process of awarding a regular toll contract on weekly-upfront basis for six months. However, with a bid of Rs 26.1 crore, it was only the second-highest bidder and the contract went to Mumbai Entry Point Limited.

"If there is only one bid by the same company the second time as well, we will award the tender to that company," the official said, adding that MSRDC will retain the financial terms of the tender the second time around. As per the terms, MSRDC will get a minimum of Rs 72 crore in the first year. The amount will increase by 10 per cent in the second year and by 20 per cent in the third year.

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