MMRDA To Re-Tender Rs 140 Billion Tunnel-Road Project

02 Jun 2025 CW Team

The agency is also evaluating the possibility of reducing the overall base project cost by approximately Rs 30 billion to ensure optimal utilisation of public funds.

The infrastructure initiative comprises two major components: a 5-kilometre twin tunnel with a diameter of 14.6 metres, estimated at Rs 80 billion, and a 9.8-kilometre elevated road bridge across Vasai Creek connecting Bhayandar and Ghodbunder Road, budgeted at Rs 60 billion. Once completed, the projects will significantly reduce travel time and enhance connectivity between the eastern and western suburbs of the Mumbai Metropolitan Region.

Engineering firm Larsen & Toubro (L&T), one of the initial bidders, had challenged the tendering process in both the Bombay High Court and the Supreme Court through a Special Leave Petition (SLP). L&T sought several interim and final reliefs, including restraining MMRDA from opening or disclosing financial bids and issuing the Letter of Award.

However, the Supreme Court did not grant L&T鈥檚 requested relief. According to MMRDA, L&T was disqualified from the tender process due to non-compliance with a mandatory eligibility clause. This clause required a declaration that no bridge or barrage built by the bidder had collapsed within two years of completion. L&T鈥檚 failure to satisfy this condition rendered its bid ineligible and disqualified from financial consideration.

Despite the judiciary upholding MMRDA鈥檚 position at both the High Court and Supreme Court levels, the authority鈥攔epresented by Senior Counsel Mukul Rohatgi and Solicitor General Tushar Mehta鈥攐pted to withdraw the tenders in the larger interest of transparency and public good. A new round of bidding will now commence for the Rs 140 billion infrastructure undertaking.

The Mumbai Metropolitan Region Development Authority (MMRDA) has announced it will re-tender the Ghodbunder鈥揃hayandar twin tunnel and elevated road project, with a fresh bidding process to be launched following legal challenges and cost concerns. The MMRDA informed the Supreme Court of India about this decision on 30 May.The agency is also evaluating the possibility of reducing the overall base project cost by approximately Rs 30 billion to ensure optimal utilisation of public funds.The infrastructure initiative comprises two major components: a 5-kilometre twin tunnel with a diameter of 14.6 metres, estimated at Rs 80 billion, and a 9.8-kilometre elevated road bridge across Vasai Creek connecting Bhayandar and Ghodbunder Road, budgeted at Rs 60 billion. Once completed, the projects will significantly reduce travel time and enhance connectivity between the eastern and western suburbs of the Mumbai Metropolitan Region.Engineering firm Larsen & Toubro (L&T), one of the initial bidders, had challenged the tendering process in both the Bombay High Court and the Supreme Court through a Special Leave Petition (SLP). L&T sought several interim and final reliefs, including restraining MMRDA from opening or disclosing financial bids and issuing the Letter of Award.However, the Supreme Court did not grant L&T鈥檚 requested relief. According to MMRDA, L&T was disqualified from the tender process due to non-compliance with a mandatory eligibility clause. This clause required a declaration that no bridge or barrage built by the bidder had collapsed within two years of completion. L&T鈥檚 failure to satisfy this condition rendered its bid ineligible and disqualified from financial consideration.Despite the judiciary upholding MMRDA鈥檚 position at both the High Court and Supreme Court levels, the authority鈥攔epresented by Senior Counsel Mukul Rohatgi and Solicitor General Tushar Mehta鈥攐pted to withdraw the tenders in the larger interest of transparency and public good. A new round of bidding will now commence for the Rs 140 billion infrastructure undertaking.

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