Mumbai: In a key development for the ambitious Virar-Alibaug Corridor project, the Maharashtra State Road Development Corporation (MSRDC) is considering switching to a Build-Operate-Transfer (BOT) model after bids received for construction were significantly over budget. The corridor, which aims to transform regional connectivity across the Mumbai Metropolitan Region, is estimated to cost Rs 66,000 crore.
According to a senior MSRDC official, who did not wish to be named, the tenders floated for contractor appointments saw bids come in at 36% above the estimated cost. To address this financial hurdle, the agency is exploring the BOT model, under which contractors would finance the construction and recover costs through toll collection over a concession period. A proposal to this effect will soon be submitted to the state government for approval.
The 126-km corridor is expected to drastically cut travel time between Virar and Alibaug to just 1.5 to 2 hours. It will connect several key expressways, including the Mumbai-Ahmedabad, Mumbai-Nashik, and Mumbai-Pune corridors, making it a critical infrastructure link for the region. The project is planned in two phases—98 km in the first and 29 km in the second.
Originally conceptualized under the Mumbai Metropolitan Region Development Authority (MMRDA), the project has faced delays due to land acquisition challenges. The Detailed Project Report (DPR) was prepared in 2016, but sluggish progress led to the project being handed over to MSRDC.
Out of the total project cost, approximately Rs 22,300 crore has been earmarked for land acquisition alone.
The Virar-Alibaug Corridor is seen as a strategic solution to decongest Mumbai and boost economic growth in surrounding areas. However, its future now hinges on the viability of the BOT model and the state government’s approval.
Project Details
- Project Length: 126 km
- Estimated Cost: Rs 66,000 crore
- Land Acquisition Cost: Rs. 22,300 crore
- Phases: The project will be built in two phases, with the first phase covering 98 km and the second phase covering 29 km.
