Seven firms win construction contracts for Mumbai Multi-Model Corridor

Mumbai, India (Urban Transport News): In a significant development for Maharashtra's infrastructure, seven civil engineering firms have emerged as the lowest bidders for 11 construction contracts of the Virar – Alibaug Multi-Modal Corridor (VAMMC) project. Announced on May 21, 2024, these firms include Larsen & Toubro Limited (L&T), Navayuga Engineering Company (NECL), Oriental Structural Engineers (OSE), IRCON International Limited, J Kumar Infraprojects (JKIL), Megha Engineering & Infrastructures Limited (MEIL), and Welspun Enterprises (WEL).

The VAMMC, an ambitious project spearheaded by the Maharashtra State Road Development Corporation (MSRDC), aims to develop an 8 to 14-lane access-controlled highway that will significantly enhance connectivity across three districts: Raigad, Thane, and Palghar.

The Virar-Alibaug Multi-Modal Corridor is a critical infrastructure project designed to facilitate smooth transit across key regions in Maharashtra. The corridor will span 126 kilometers, with the first phase covering 96.47 kilometers. This phase will connect Navghar and Balavali, passing through the districts of Raigad, Thane, and Palghar.

The project is divided into multiple packages for streamlined execution. Phase 1 includes 11 packages, designated as MMC-1 through MMC-11. These packages will be executed by the winning bidders, who were selected through a competitive bidding process initiated by MSRDC.

MSRDC's journey to finalizing the contractors began in April 2023, with the invitation for Requests for Qualification (RfQ) applications. By June 2023, 28 firms had submitted their applications, and 18 were shortlisted for the Request for Proposal (RfP) round in December 2023. The final price bids were invited in January 2024, with a construction deadline of 900 days.

In April 2024, MSRDC received 33 bids from 14 firms. The lowest bidders for each package were as follows:

Package MMC-1

• Length: 8.27 km
• Chainage: 0.065 to 8.335
• Estimated Cost: ₹1,991.80 crore

Bidders

• Navayuga Engineering Company Ltd.: ₹2,763 crore (L1)
• Megha Engineering & Infrastructures Ltd: ₹2,866 crore (L2)

Package MMC-2:

• Length: 12.39 km
• Chainage: 8.335 to 20.720
• Estimated Cost: ₹1998.10 crore

Bidders

• Oriental Structural Engineers: ₹2,527 crore (L1)
• APCO Infratech: ₹2,635 crore (L2)
• Welspun Enterprises: ₹2,689.15 crore (L3)

Package MMC-3:

• Length: 5.28 km
• Chainage: 20.720 to 26.000
• Estimated Cost: ₹1998.45 crore

Bidders

• Oriental Structural Engineers: ₹2,672.82 crore (L1)
• GR Infraprojects: ₹2,766.07 crore (L2)
• Roadway Solution: ₹2,801 crore (L3)
• Megha Engineering & Infrastructures Ltd: ₹2,856 crore (L4)

Package MMC-4:

• Length: 3.26 km
• Chainage: 26.000 to 29.260
• Estimated Cost: ₹1885.80 crore

Bidders

• Larsen & Toubro Ltd. (L&T): ₹2,620 crore (L1)
• Afcons Infrastructure Ltd: ₹2,723.40 crore (L2)
• GR Infraprojects Ltd: ₹2,789.07 crore (L3)

Package MMC-5:

• Length: 11.5 km
• Chainage: 29.620 to 40.760
• Estimated Cost: ₹1899.50 crore

Bidders

• Larsen & Toubro Ltd (L&T): ₹2,687.59 crore (L1)
• PNC Infratech Ltd: ₹2,789 crore (L2)
• Navayuga Engineering Co. Ltd: ₹2,845 crore (L3)

Package MMC-6:

• Length: 12.83 km
• Chainage: 40.760 to 53.592
• Estimated Cost: ₹1911.50 crore

Bidders

• IRCON International Ltd: ₹2,361 crore (L1)
• Montecarlo: ₹2,504 crore (L2)
• Larsen & Toubro Ltd (L&T): ₹2,560.06 crore (L3)

Package MMC-7:

• Length: 8.61 km
• Chainage: 53.592 to 62.200
• Estimated Cost: ₹1975 crore

Bidders

• IRCON International Ltd: ₹2,439 crore (L1)
• Larsen & Toubro Ltd (L&T): ₹2,566 crore (L2)

Package MMC-8:

• Length: 7.97 km
• Chainage: 62.200 to 70.167
• Estimated Cost: ₹1664.30 crore

Bidders

• J Kumar Infraprojects Ltd: ₹2,138 crore (L1)
• IRCON International Ltd: ₹2,210 crore (L2)
• Oriental Structural Engineers: ₹2,233.54 crore (L3)

Package MMC-9:

• Length: 7.23 km
• Chainage: 70.167 to 77.400
• Estimated Cost: ₹1573.70 crore

Bidders

• Megha Engineering & Infrastructures Ltd: ₹2,185.86 crore (L1)
• Navayuga Engineering Co. Ltd:₹2,287 crore (L2)

Package MMC-10:

• Length: 11.22 km
• Chainage: 77.400 to 88.620
• Estimated Cost: ₹1613.10 crore

Bidders

• J Kumar Infraprojects Ltd: ₹2,040 crore (L1)
• BSCPL Infrastructure Ltd: ₹2,134 crore (L2)
• Welspun Enterprises: ₹2,186.99 crore (L3)

Package MMC-11:

• Length: 7.85 km
• Chainage: 88.620 to 96.470
• Estimated Cost: ₹1533 crore

Bidders

• Welspun Enterprises: ₹1,864.71 crore (L1)
• Gawar Construction: ₹1,934 crore (L2)
• BSCPL Infrastructure Ltd: ₹1,976 crore (L3)
• J Kumar Infraprojects Ltd: ₹2,018 crore (L4)

One of the significant challenges highlighted by the bidding process is the budgetary constraint faced by MSRDC. The lowest bids for each package were significantly higher than the estimated costs provided by MSRDC. For example, Navayuga's bid for Package MMC-1 was 38.71% higher than the estimated cost, while Oriental's bid for Package MMC-2 was 26.47% higher.

This discrepancy between the estimated costs and the actual bids could lead to delays in the project's execution. MSRDC faces a crucial decision: either revise its budget to align with the bids received or scrap the bidding process and re-invite bids. This decision will determine the project's timeline and progress.

The Virar-Alibaug Multi-Modal Corridor is a transformative infrastructure project to enhance connectivity and economic development across Maharashtra. The competitive bidding process has identified capable firms ready to undertake this massive project. However, the significant budgetary differences present a challenge that MSRDC must address to move forward. The resolution of this issue will be crucial in determining the project's success and timely completion.