Mumbai Multi Modal Corridor: L&T, NECL, OSE, IRCON, JKIL, MEIL & WEL Win Contracts (2024)

Seven civil engineering firms on Tuesday were declared as the lowest bidders for 11 construction contracts of the 126 kmVirar – Alibaug Multi-Modal Corridor (VAMMC) project’s 96.47 km Phase 1.

The winners list includes Larsen & Toubro (L&T), Navayuga Engineering Company (NECL), Oriental Structural Engineers (OSE), IRCON International, J Kumar Infraprojects (JKIL), Megha Engineering and Infrastructures (MEIL), and Welspun Enterprises (WEL).

Virar-Alibaug Multi-Modal Corridor will be developed as an 8 to 14 lane access-controlled highway by Maharashtra State Road Development Corporation (MSRDC).

Phase 1 will connect Navghar – Balavali through three districts – Raigad, Thane, and Palghar. Its construction will be carried out under 11 packages (MMC-1, MMC-2, MMC-3, MMC-4, MMC-5, MMC-6, MMC-7, MMC-8, MMC-9, MMC-10, MMC-11).

MSRDC had invited RfQ applications for its civil construction in April 2023 and opened bids in June 2023 to reveal 28 firms had submitted applications. 18 of those firmsqualifiedto the next RfP round in December 2023.

MSRDC then invited price bids from those 18 firms in January 2024 with a construction deadline of 900 days. In April 2024, they received 33 bids from 14 firms.

Financial Bid Values

Here are the financial bid values for each package. Oriental, Larsen & Toubro, IRCON and J Kumar each won 2 packages, while Navayuga, Megha and Welspun each won 1 package.

Package MMC-1

• Length: 8.27 km
• Chainage: 0.065 to 8.335
• Estimated Cost: Rs. 1991.80

Package MMC-2

• Length: 12.39 km
• Chainage: 8.335 to 20.720
• Estimated Cost: Rs. 1998.10 crore

Package MMC-3

• Length: 5.28 km
• Chainage: 20.720 to 26.000
• Estimated Cost: Rs. 1998.45 crore

Package MMC-4

• Length: 3.26 km
• Chainage: 26.000 to 29.260
• Estimated Cost: Rs. 1885.80 crore

Package MMC-5

• Length: 11.5 km
• Chainage: 29.620 to 40.760
• Estimated Cost: Rs. 1899.50 crore

Package MMC-6

• Length: 12.83 km
• Chainage: 40.760 to 53.592
• Estimated Cost: Rs. 1911.50 crore

Package MMC-7

• Length: 8.61 km
• Chainage: 53.592 to 62.200
• Estimated Cost: Rs. 1975 crore

Package MMC-8

• Length: 7.97 km
• Chainage: 62.200 to 70.167
• Estimated Cost: Rs. 1664.30 crore

Package MMC-9

• Length: 7.23 km
• Chainage: 70.167 to 77.400
• Estimated Cost: Rs. 1573.70 crore

Package MMC-10

• Length: 11.22 km
• Chainage: 77.400 to 88.620
• Estimated Cost: Rs. 1613.10 crore

Package MMC-11

• Length: 7.85 km
• Chainage: 88.620 to 96.470
• Estimated Cost: Rs. 1533 crore

The lowest bid for each package’s construction was significantly higher than MSRDC’s estimate, so we’ve reached a deadlock which can take months to resolve. For instance – in Package MMC-1, Navayuga’s bid was 38.71% higher than MSRDC’s estimate. Similarly in Package MMC-2, Oriental’s bid was 26.47% higher.

It’s the same story for all other packages. There just isn’t any room for negotiations without altering scope or quality. It remains to be seen if MSRDC will bite the bullet (by revising their budget) and award contracts to get work started OR will scrap the entire process and re-invite bids.

MSRDC on Tuesday also opened bids for 5 other expressway projects – and things don’t look too bright for them either. Check out each link below for a list of winners:

• 136.80 kmPune Ring Road
• 179.85kmJalna – Nanded Expressway
• 127 km Nagpur – Gondia Expressway
• 182 kmNagpur – Chandrapur Expressway
• 156 kmBhandara – Gachiroli Expressway’s Package BG-01

For more updates, check out theExpressway sectionor myHome Page! Sign up for free instant email notifications on new postsover here. Get early-access to updates and support the siteover here.

– TMRG

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1. 

   CK says:

   May 22, 2024 at 3:33 am

   All 26 packages above estimates…
   What do you think they’ll do, TMRG?
   If they go for a retender, will it be both RFQ and RFPs or will they just go for RFPs from these same 18 bidders?
   I guess if they went for retenders, and were quick about it, they could be back to opening Financial Bids by October-November.
   Didn’t this happen with MMRDA, twice, for Mumbai Metro 2B?
   Given that the difference isn’t that high for MMC-11, do you think they’d go ahead with that and go for retender for the others?

   Reply

   • 

     Kingshuk says:

     May 23, 2024 at 12:22 pm

     I think all contractors have factored in substantial delays due to land acquisition and encroachment removal. Learning from their current experience.

     Reply

2. 

   Rahul says:

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   May 22, 2024 at 7:03 am

   All bidders are bidding very high prices. This means there is something very wrong with the estimated value of MMRDA. Either they need to re-evaluate their value or change work scope. Formal would be appreciated.

   Reply

3. 

   sharad says:

   May 22, 2024 at 8:26 am

   Hi TMRG

   Nagpur – Chandrapur & Nagpur – Gondia opened yesterday

   pl update in system

   Reply

4. 

   Rakesh Singh says:

   May 22, 2024 at 9:20 am

   It appears that MSRDC has prepared estimates based on PWD rates which does not consider many factors.Infact estimate needs to be made considering market rates separately.The budgetary quotations from reputed agencies can be a benchmark for real estimate.

   Reply

5. 

   Anant ukey says:

   May 23, 2024 at 6:58 am

   During tender process , common factor is difference in cost of tender value vs actual quote by construction firm, because I think MSRDC work out the rates from PWD CSR/DSR,hence in this not considered local issues, escalation,safety measures delay in land acquisition impact on project cost values

   Reply

6. 

   Sunil says:

   May 24, 2024 at 7:24 am

   Shame on financial/commercial capital as it is very low in connectivity when already chennai, hyderabad and bangalore have Ring Roads.

   Reply

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