Maharashtra State Road Development Corporation will submit a report to the State Government seeking termination of its contract with Reliance Infrastructure (RInfra) for the Worli—Haji Ali Sea Link project in Mumbai, an MSRDC official said.

“We will submit the proposal to the Government to cancel the contract with RInfra for the project,” the official said.

When contacted, an RInfra spokesperson declined to comment.

The MSRDC board has decided to go ahead with the recommendations made by retired Justice B. P. Singh, who acted as a mediator between the Government and the company and stated that RInfra should be allowed an exit from the contract.

More recently, Attorney General G. E. Vahanvati had sent a letter to the MSRDC, recommending an amicable termination of the agreement with the company without any monetary liability on either side.

There was a lingering dispute between MSRDC and RInfra over how to take the project forward.

In June 2010, the MSRDC had signed a concession agreement with RInfra to build the sea link but the project was stalled due to differences between the two parties over issues including the viability gap funding, handing over of the casting yard and completion of formalities before beginning construction.

(This article was published on August 10, 2012)
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