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STATE’S DELAY IN RELEASING FUNDS MAY HIT MSRDC’S INFRA PROJECTS HARD

msrdc1Infrastructure projects in the state are likely to be stalled if the government does not pay its dues to the cash-strapped Maharashtra State Road Development Corporation. According to source in Mantralaya, the state owes the MSRDC Rs. 2,300 Crore and unless the amount is paid immediately, the corporations will run into financial trouble. The matter was brought up at the corporation’s board meeting last week, when the members were informed that if the government did not pay its dues, they might have to wind up it projects. MSRDC Chairperson Vimal Mundada had to cut the meeting short and rush to Mantralaya to apprise the state financial minister of the situation, an official said. The MSRDC has always faced financial crisis but this time, the issue has come to a head. According to an official, the corporation also has to repay a loan of Rs 900 crore to the MMRDA and another Rs. 1,200 crore to nationalized banks. The interest on the Rs 600 crore bonds floated by the MSRDC also has to be paid, the official added. Among the other major works the MSRDC has undertaken are Airoli Bridge, Mumbai Pune Expressway and integrated road development projects in major cities across the state. Had its trans-harbor sea link between Sewri and Nhava, the cost of which has been estimated at Rs 5,500 crore, come off earlier, the company would have had some money to look after itself, but that project has been delayed due to the global financial situation. Bureau report – NMTV News.

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