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NHSRCL inviting bids for construction of 21-km tunnel for Mumbai-Ahmedabad bullet train

The total cost of Mumbai-Ahmedabad High Speed Rail Corridor project is pegged at Rs 1.08 lakh crore.


The bids have been invited for the tunnelling work 21 km underground, including a 7-km long undersea tunnel to be built using Tunnel Boring Machine (TBM) and New Austrian Tunnelling Method (NATM), a spokesperson of the NHSRCL said. The package is ...

The National High Speed Railway Corporation Limited (NHSRCL) on Friday invited bids for the construction of a 21-km long tunnel for the Mumbai-Ahmedabad High Speed Rail Corridor.

The tunnel will be built between the underground station at Bandra-Kurla Complex and Shilphata in Thane district of Maharashtra, a spokesperson of the NHSRCL said.

The bids have been invited for the tunnelling work 21 km underground, including a 7-km long undersea tunnel to be built using Tunnel Boring Machine (TBM) and New Austrian Tunnelling Method (NATM), he said.

The package is open to Japanese and Indian companies, the official added.


The total cost of Mumbai-Ahmedabad High Speed Rail Corridor project is pegged at Rs 1.08 lakh crore.

As per the shareholding pattern, the Centre is to pay Rs 10,000 crore to the NHSRCL, while Gujarat and Maharashtra are to pay Rs 5,000 crore each. The rest is to be paid by Japan through a loan at 0.1 per cent interest.


At least 77.68 per cent, which is 1084.48 of 1,396 hectares of land, has been acquired for the bullet train corridor, the official said.

While 432.67 hectares are needed for this ambitious project in Maharashtra, presently only 143.06 hectares has been acquired, it was stated.


At least 97.71 per cent land acquisition in Gujarat and 100 per cent in Dadra Nagar Haveli has been completed for the project.

The NHSRCL has already invited bids for the construction of an underground station of the high-speed railway at the Bandra Kurla Complex.

According to NHSRCL officials, the last day for submission of bids for the construction of the station is December 7, but the Maharashtra government is yet to hand over the land at Bandra Kurla Complex.

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UV pips Arcil for IFIN loan portfolio

BCCL
The resolution is an important step for the Uday Kotak-led board that took over after the collapse of the financier.

Synopsis

UV is offering Rs 370 crore in an all cash transaction to take over Rs 4,300 crore of loans at a 91% haircut from IFIN, beating Arcil's Rs 275 crore bid submitted in August, three people directly aware of the deal said.

UV Asset Reconstruction Co is set to take over Rs 4,300 crore of loans from the bankrupt Infrastructure Leasing & Financial Services' (IL&FS) non-banking financial company IL&FS Financial Services (IFIN), trumping an initial offer from rival Arcil Ltd earlier this month.


The resolution is an important step for the Uday Kotak-led board that took over after the spectacular collapse of the infrastructure financier in 2018 with an aim of resolving Rs 99,000 crore of stressed debt.

UV is offering Rs 370 crore in an all cash transaction to take over Rs 4,300 crore of loans at a 91% haircut from IFIN, beating Arcil's Rs 275 crore bid submitted in August, three people directly aware of the deal said.

"Arcil's bid was considered too low and so the board decided to seek a competitive bid that was much higher and closer to what the board thought was a fair value," said one of the persons cited above.

The portfolio consists of loans to builders and some infrastructure loans given by IFIN. When the parent company collapsed, the total assets under management (AUM) with IFIN were about Rs 18,000 crore. Those included loans to group companies and investments.
Some of these loans have been recovered by IL&FS and some loans written off. ET could not independently verify the amounts.
To be sure, because Arcil was the initial bidder, it still has the opportunity to match or trump UV ARC's bid until the first week of November. But it is unlikely to do so, said a second person familiar with the bidding process.

"UV's bid is 35% higher than Arcil which is a steep premium. Arcil does not think it is worth the price since these are high risk loans; so UV is free to walk away with the deal," said the second person.

Replying to an email seeking comments, an IL&FS spokesperson confirmed that a bid challenging the initial Arcil interest had been received under the so-called Swiss challenge method.

"As per the new RBI guidelines, the process involving engagement with the initial bidder is now underway and the final H1 bidder would be announced once this process is completed," the spokesperson said without specifying a timeline.

In July, IL&FS had said it expects to address Rs 58,000 crore or 95% of its estimated debt recovery target by March 2022.

As of May 31, 2021, Rs43,600 crore or 44 per cent of estimated recovery have been addressed, the group said.

Of the total 347 entities under IL&FS Group (as of October 2018), a total of 211 entities have been resolved as of May 31, 2021, a company presentation showed.

The group expects to complete the resolution of 41 more entities by March 2022.

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