News: Mumbai hovercraft project stuck in babudom

(DNA 28/03/2006) Mumbai - The delay in the Passenger Water Transport project for western suburbs is a classic example of the way the Maharashtra government is hampering mega transportation projects.

The Rs1,400-crore, eco-friendly project, part of the Mumbai redevelopment plan, has been locked in bureaucratic wrangles and delays since the financial bids were opened in December 2003. The delay and lack of initiative means commuters will have to wait for another three years to whiz across the sea from Borivali to Nariman Point in just 50 minutes in air-conditioned hovercrafts.

Ministry of Environment and Forests (MoEF) has allowed passenger water terminals at Bandra, Juhu, Versova and Borivali, while those at Nariman Point and Marve are awaiting nod for want of more geo-technical investigation and sub-soil exploration.

A consortium, led by Mumbai-based Satyagiri Shipping Co Ltd, which won the contract, is now in the final stages of getting the project financing report prepared by a leading international consultant. Indian financial and infrastructure institutions are evaluating the project.

The consortium, comprising KJMC Financial Services, Gammon India, Videocon International, Hiranandani Group, along with ABS Hovercraft Ltd (UK) and Hoverline AB (Sweden), is planning to bring high-speed hovercraft and catamarans with capacities to carry 60 to 300 people. It is planned to operate hovercrafts every 15 minutes during peak hours.

The project will be implemented on a ‘Built-Operate-Transfer’ (BoT) basis, with a 30-year lease. Initial estimates show that the services would carry one lakh people daily for a Rs130 one-way fare (from Borivali to Nariman Point) and would be operational 300 days a year.

“We are expecting the ‘letter of award’ from the state government by April 2006. We will be finalising criteria for shareholding and technical evaluation shortly,” said Dinesh Joshi, director, Satyagiri.

However, the feasibility of this project lies on the concession agreement between Satyagiri and the Maharashtra government. The former wants the project to made part of the Inland Water Transport (IWT) policy to get subsidies on fuel and reduction in import duties. “We need subsidies so that the fares can be made affordable The passenger terminals must have cafeterias and other entertainment avenues for revenues,” explained Joshi.

It looks like the city’s wait for a sea ride to work will continue for some more time.