Not ₹8,500 cr, MbPA will charge ₹475 cr for land for SoBo twin tunnels
Reacting to the HT report on the Mumbai Port Authority quoting ₹8,500 crore for a plot of land at Orange Gate from the MMRDA - a sum that is more than the total cost of the Eastern Freeway-Coastal Road twin tunnels project - the port authority has now clarified that it has sought ₹475 crore only.
Mumbai, Dec. 31: Reacting to the Hindustan Times’ report on the Mumbai Port Authority (MbPA) quoting ₹8,500 crore for a plot of land at Orange Gate from the Mumbai Metropolitan Region Development Authority (MMRDA) - a sum that is more than the total cost of the Eastern Freeway-Coastal Road twin tunnels project - the port authority has now clarified that it has sought ₹475 crore only.
HT on December 27 had published a report on the land acquisition cost exceeding the project’s construction value because of MbPA’s demand. When MbPA’s Estate Department’s head, A P B Mattoo, was approached for a comment then, he had not responded to calls and a message.
However, after the report was published, MbPA’s spokesperson shared a statement which read: “Based on MMRDA’s request, the terms for grant of land on lease in respect of land required in Phase 1 near Orange Gate Princess Dock measuring 12,500 sq m for temporary use for a period of 5 years at an annual lease rent of ₹25.58 crore per annum and 7,100 sq m for permanent use for a period of 30 years at an annual lease rent of ₹14.53 crore has been communicated to MMRDA in accordance with the provisions of Union Cabinet-approved policy guidelines for Land Management 2015, issued by the Government of India. The lease rent conveyed is on an annual rental basis.”
According to the port official, the terms also include that of the underground tunnel which will pass through MbPA land, wherein the special way charges, at the rate of 50% of the schedule of rates, would apply. After the initial period of project work, the 1.25-hectare land will go back to the MbPA, and for the 7,100 sq m of land under permanent occupation, a concession of 50% would become applicable after the initial five years.
“Considering the importance of the project in providing relief to the traffic congestion in Mumbai city and based on common understanding achieved between both organisations, the land was handed over to MMRDA from October 1, 2024, for betterment of the city. MMRDA has already started the work,” the statement read. The statement, however, was silent on MMRDA’s claim, as reported, about the requirement of additional land of 3.25 hectares.
The twin tunnels are part of an ambitious plan to connect Mumbai’s western and eastern seafronts. MMRDA had invited bids for the project in January 2023, with an estimated cost of ₹6,500 crore. In July that year, Larsen & Toubro emerged as the lowest bidder with a ₹7,765 crore quotation.
The 9.23 km-long twin tunnel project would require a portion of MbPA’s land near Orange Gate. During the construction phase, just over 4.25 hectares of land are needed for men and machinery, as well as to launch the tunnel boring machine. So far, MMRDA has secured nearly two hectares for this purpose.
“For the plot needed from the MbPA, they have done a certain calculation, as per which MMRDA has been asked to pay around ₹8,500 crore. This is more than the project’s cost,” a senior MMRDA official had told HT.
Post-construction, only one hectare will be permanently occupied because an entry-exit ramp will be constructed on it. The remaining 3.25 hectares will be restored and returned.
Of the 9.23-km new stretch to be added to the city’s road network, 6.51 km will be the tunnel component. Once the twin tunnel is ready, it will provide a ring road connectivity to go to the other coast and eventually to Atal Setu to go to Navi Mumbai or take the Coastal Road to head to the western suburbs via the chain of sea links.
This east-west underground linking project is being carried out to decongest stretches of road like Crawford Market Junction, GPO Junction and CSMT Junction, as this road will act like a bypass for traffic headed to and from Marine Drive, Malabar Hill, Walkeshwar and Nepean Sea Road.
Once the twin tunnels are ready, they will provide a ring-road connectivity to switch to and from Mumbai’s eastern and western coasts. The road connectivity would extend to Navi Mumbai on the east via the Mumbai Trans Harbour Link or Atal Setu and to the western suburbs via the coastal road and a chain of sea links that are being constructed.
The construction period for the project is estimated to be four and a half years.
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