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R-Infra sole bidder for 2nd Mumbai Metro project

Reliance Infrastructure Ltd. | Power Generation/Distribution | Power | BSE: 500390 | NSE: RELINFRA

01 Jun 2009 Evaluate

A consortium led by Reliance Infrastructure Ltd has emerged the sole bidder in a financial tender for the Rs 7,660 crore second line of the Mumbai Metro rail network. R Infra in partnership with Canada’s SNC-Lavalin Group and Reliance Infocomm Ltd had submitted a bid amount of Rs 2,298 crore, which is the capital grant it requires from the Central and state governments for the mass rapid transit project. The proposed 32km rail corridor is the longest of the three routes in the first phase of the Mumbai Metro network, and will connect Charkop on the west to Mankhurd on the harbour line in the east, via Bandra.

Reliance Infra’s bid was the only bid received and is considered for approval by the executive committee of the MMRDA, the nodal agency handling the project. Once approved, the contract will be handed over to the bidder.

Reliance’s bid of Rs 2,298 crore is much less than the 40% grant that it is entitled to, which is a qualifying criterion. The second Metro line, to be built in a public-private partnership model, is entitled to a maximum grant of Rs 3,064 crore, or 40% of the project cost, from the Union and state governments. Of this, the Union government has approved Rs 1,532 crore.

Six other groups that had submitted technical bids earlier—Reliance Industries Ltd, GVK Group-Bombardier Inc., Tata Power Co. Ltd-Mitsubishi Corp., GE India-Larsen and Toubro Ltd, IL&FS-Punj Llyod Ltd and Essar- Alstom—dropped out in the financial bid round. Reliance Infra is also constructing the first 11km long, Rs 2,356 crore Andheri-Versova-Ghatkopar rail corridor connecting the city’s western and eastern suburbs.

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R-Infra sole bidder for 2nd Mumbai Metro project

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