Maharashtra MSRDC Scraps ₹26,300 Cr Road Contracts Deal.

Maharashtra Scraps Rs 26,300 Cr Road Deals

• Virar-Alibaug Expressway to Link 3 Key Districts

• Rising Costs Trigger Tender Reboot

Unmesh Gujarathi

Sprouts News Exclusive

Contact: +91 9322755098

In a major policy shift of the Maharashtra Road Contract Deal of Rs 26,300 Cr, the Maharashtra State Road Development Corporation (MSRDC) is preparing to cancel 11 construction contracts worth ₹ 26,300 crore. These contracts were awarded under the Eknath Shinde-led government to seven civil engineering firms for the first phase of the Virar-Alibaug Multi-Modal Corridor (VAMMC) project. The 96.47-kilometre stretch was initially to be built under the Engineering, Procurement and Construction (EPC) model.

However, the government is now exploring a new implementation strategy. It plans to float fresh tenders for the entire 126-kilometre project using the Build-Operate-Transfer (BOT) model. This decision reflects growing concerns over escalating costs and the feasibility of the earlier EPC framework.

Contents

Maharashtra Scraps Rs 26,300 Cr Road Deals • Virar-Alibaug Expressway to Link 3 Key Districts • Rising Costs Trigger Tender Reboot Maharashtra MSRDC Scraps ₹26,300 Cr Road Contracts Deal • Virar-Alibaug Corridor to Enhance Connectivity Across Raigad, Thane, and Palghar • Maharashtra Road Deal Cost Overruns and Tender Revisions Prompt Project Overhaul • Shift from EPC to BOT Model Aims to Mitigate Risk • Strategic Infrastructure Project Remains a Key Government Priority • Sprouts News Investigation Seeks Scrapping of Pune Ring Road Tenders Also Read: Shagun Realty Under Fire: Legal Storm Hits Redevelopment.• Megha Engineering Misusing TV9 Platform, Say Reports • Allegations Surface • Biased Coverage Claimed • Sprouts News Flags Issue

Maharashtra MSRDC Scraps ₹26,300 Cr Road Contracts Deal

• Virar-Alibaug Corridor to Enhance Connectivity Across Raigad, Thane, and Palghar

The Virar-Alibaug Multi-Modal Corridor, envisioned as an 8 to 14-lane access-controlled expressway, has been under consideration since 2011. Initially assigned to the Mumbai Metropolitan Region Development Authority (MMRDA), the project was transferred to MSRDC in 2020. It is designed to decongest traffic and improve logistical efficiency across the Mumbai Metropolitan Region.

The expressway will link the districts of Raigad, Thane, and Palghar, offering significant connectivity benefits. Phase one will cover a 96.41-km stretch from Navghar near Vasai to Balavali near Pen. Phase two will span 29.9 km between Balavali and Alibaug, completing a total route of approximately 126 km. Sprouts News has learned that the full 165-km corridor is being reevaluated to align with regional transportation priorities.

• Maharashtra Road Deal Cost Overruns and Tender Revisions Prompt Project Overhaul

The initial EPC-based tenders encountered a significant financial hurdle, with bids for phase one exceeding the estimated cost by nearly 36%. This unexpected rise in expenses triggered a reassessment of the project’s financial model and risk-sharing mechanisms. MSRDC responded by dividing the tender into 11 smaller packages in May 2024.

Seven infrastructure firms emerged as the lowest bidders, including prominent names such as Larsen & Toubro (L&T), Navayuga Engineering Company (NECL), Oriental Structural Engineers (OSE), IRCON International, J Kumar Infraprojects (JKIL), and Megha Engineering. Despite this competitive bidding, the state government is opting to halt progress under the current terms.

Maharashtra cancels ₹26300 Cr Road Contracts Deal

• Shift from EPC to BOT Model Aims to Mitigate Risk

The move to adopt the Build-Operate-Transfer (BOT) model represents a strategic attempt to shift financial risk from the public sector to private players. Under this model, the selected contractors will be responsible for financing, constructing, and operating the expressway for a fixed concession period before transferring it back to the government.

Officials believe the BOT approach will encourage greater investment discipline and lifecycle cost efficiency. According to sources cited by Sprouts News, a formal decision on retendering is expected soon, pending cabinet approval and financial feasibility reports.

• Strategic Infrastructure Project Remains a Key Government Priority

Despite the current uncertainty, the Virar-Alibaug Multi-Modal Corridor remains a strategic priority for Maharashtra’s infrastructure development agenda. The corridor is expected to facilitate smoother movement of goods and passengers across coastal and hinterland regions, supporting both urban and industrial growth.

MSRDC officials have reaffirmed their commitment to seeing the project through, albeit under a more financially viable structure. As reported by Sprouts News, the agency is also engaging with central authorities and potential investors to ensure long-term funding for the corridor’s full execution.

• Sprouts News Investigation Seeks Scrapping of Pune Ring Road Tenders

In a related development, the Special Investigation Team of Sprouts News has called for the immediate cancellation of tenders awarded for the Pune Ring Road project. The investigative team alleges that the tendering process is marred by large-scale corruption and opaque dealings, raising serious concerns about favoritism and misuse of public funds. Stakeholders are urging the Maharashtra government to conduct an independent audit and ensure transparency in all future infrastructure bids.