Mumbai Infrastructure Still Lags Shanghai

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At the ground level, the infrastructure projects can be placed in two categories. Within the first category are projects undertaken by state agencies like Brihanmumbai Municipal Corporation (BMC), Mumbai Metropolitan Regional Development Authority (MMRDA), and Maharashtra State Road Development Corporation (MSRDC). The other category encompasses the ones for which the state has either partnered with private companies or those that are entirely being implemented by private companies on build, operate, and transfer (BOT) basis.

Interestingly, the public sector projects like the Mumbai Urban Transport Project (MUTP), Mumbai Urban Infrastructure Project (MUIP), and the Station Area Traffic Improvement Scheme (SATIS) have been progressing well. This is when compared to some of the mega PPP (Public Private Partnership) projects like the Mumbai Metro, MTHL, and finally, the second international airport that is proposed to be set up near Navi Mumbai. There is probably a valid reason for this. According to a MSRDC official, the state-run projects consist of several components. "The MUTP, for instance, involves road works, introduction of new BEST buses as well as upgradation of trains. However, the mega projects like MTHL or the Mumbai Metro are standalone in nature where the progress will be visible only after the initial hiccups are over."

Now, here's probably the most disconcerting part of the whole thing. The flagship schemes forming the crux of the makeover for the city are way behind schedule making a mockery of their original deadlines. Nitin Gadkari, state BJP president and former PWD-MSRDC minister, credited with a speedy completion of the much-touted Mumbai-Pune Expressway in addition to as many as 55 flyovers in Mumbai over a four year period puts forth his point rather clearly.

He says that the Bandra-Worli Sea Link was proposed by the erstwhile Shiv Sena-BJP government in the mid-nineties (see inset). "Delays defeat the very purpose of mass transport projects in the sense that the number of commuters and passenger vehicles are only on the increase," says Mr Gadkari. Likewise, BJP veteran and former Railway Minister, Ram Naik points out that since 2005, Mumbai's trains have recorded an increase of around 3-5 lakh commuters. "What is the point if the railway projects don't meet their deadlines? A peak hour traffic projection for 2009 is made in 2005 for a project that is expected to be completed in 2009. Now, if that project gets delayed, obviously there will be pressure on the hour traffic load," he says.

Sibling rivalry to the fore

There were issues almost right after this. While REL asked for a 26% rate of return on its investment, the state stuck to a figure of 15%. The REL-led consortium finally came round and the contract was formally awarded in May 2006. A Special Purpose Vehicle (SPV) called Mumbai Metro One Private Limited (MMOPL) was formed between REL and MMRDA. It was projected then that the first metro train would run by December 2009.

Today, that projection looks almost unreal thanks to a variety of problems. Among these were objections raised by the residents of Versova and Ghatkopar, the issue of viability gap funding (VGF) to the extent of Rs 650 crore from an earlier level of Rs 1,250 crore and finally, the question of where land would be obtained for the parking. Not surprisingly, MMOPL maintains the deadline will be adhered to. As things stand, the state and MMOPL have sorted out the land issue and work on that commenced two months ago. The VGF problem, however, remains unresolved. A state bureaucrat points out that the VGF is not really related to the project. "If the VGF does not come from the centre, the MMRDA or the state will have to bear it," he adds.