Why MMRDA has scrapped the tendering process for Thane-Bhayandar mega infra projects
The Mumbai Metropolitan Region Development Authority (MMRDA) on Friday (May 30) informed the Supreme Court that it has decided to scrap the tender process for Thane-Ghodbunder to Bhayandar tunnel and elevated road projects worth over Rs 14,000 crore in 'public interest'.
The Bench was hearing a challenge by Larsen & Toubro (L&T) Ltd to orders passed by the Bombay High Court on May 20 upholding MMRDA's position that the reasons for rejecting the technical bids need not be communicated to the company before the projects are awarded.
The top court had on Thursday (May 29) asked Mumbai's infrastructure development authority whether it was willing to carry out a re-tendering process for the two major projects in the financial capital – and warned that failure to do so might lead the court to stay the current tenders.
A Bench comprising Chief Justice of India (CJI) B R Gavai and Justice A G Masih had asked this question to Mumbai Metropolitan Region Development Authority (MMRDA) first on May 26.
On Friday, taking MMRDA's statement on the record, the SC disposed of as 'infructuous' the pleas by L&T.
What is the background of this major development, and how did the matter reach the Supreme Court?
What are these two infrastructure projects?
The two projects will link Thane with Mira-Bhayandar. They are part of an extension of the Mumbai Coastal Road project.
The first project is a 5-km twin tunnel of 14.6-metre diameter, connecting Gaimukh near the mouth of Vasai Creek in Mira-Bhayandar to the Fountain Hotel junction at Shilphata in Thane. The project cost is estimated at Rs 8,000 crore.
The second project, a 9.8-km elevated creek road bridge, will connect Bhayandar with Ghodbunder Road in Thane. The cost of this project is estimated at Rs 6,000 crore.
The elevated bridge is likely to be second in length only to the Mumbai Trans Harbour Link (MTHL) bridge, also called Atal Setu, which, at almost 22 km, is both the longest bridge and the longest sea bridge in India.
What was L&T's contention?
MMRDA invited tenders for the two projects on July 27, 2024. L&T approached the Bombay HC claiming not enough time had been allowed to collect geotechnical data. On October 8, MMRDA assured that the last date for the submission of bids would be extended by 60 days.
Earlier this month, L&T filed two petitions before the HC, contending that MMRDA did not follow a fair and transparent tender process.
The company said that it had submitted its technical bid on December 13, 2024, and the bid was opened on January 1, 2025 – however, it had received no communication about the outcome of the evaluation.
After learning that MMRDA had scheduled the opening of financial bids on May 13 and invited select bidders for it, L&T suspected that it had been excluded from the process, the company submitted.
This, L&T said, violated the principles of natural justice. The Instructions to Bidders (ITB) – which are detailed guidelines for potential bidders to prepare and submit their bids for a specific project – are discriminatory, L&T said.
What was MMRDA's stand?
MMRDA claimed that as per the clauses of ITB, it was not required to intimate L&T that its technical bid had been found unresponsive before the opening of financial bids.
Once L&T had accepted the terms of the tender, it could not oppose the opening of the financial bids, MMRDA submitted. It argued that public infrastructure projects should not be delayed, and L&T's pleas deserved to be dismissed.
And what did the High Court rule?
A Vacation Bench of the court dismissed L&T's pleas and declined to continue the stay on opening of financial bids for the elevated road. In the case of the tunnel project, the Bench rejected L&T's plea, noting a 'suppression of material facts'.
The HC said it had to be 'mindful' that the matter involved 'mega infrastructure projects of significant public importance', and 'any delay…would adversely impact the execution of the project'.
The court gave L&T the opportunity to approach the Supreme Court in appeal.
What happened in the Supreme Court?
L&T submitted before the SC that there was an arbitrary declaration of the L1 (Lowest one) bid for both projects to Hyderabad-based Megha Engineering and Infrastructure Ltd (MEIL), even though its bid was at a substantially higher project cost compared to L&T's.
L&T claimed that compared to MEIL, its price bid was almost Rs 2,521 crore less in case of the tunnel project, and Rs 609 crore less for the elevated road project.
MMRDA argued that the question of price did not arise if the petitioner was disqualified. However, the Bench disagreed, and said it shall be considered in case of 'public interest matters' and 'public money would be saved'.
On May 26, the SC said it was difficult to comprehend that the technical bids submitted by L&T – the company which had been chosen to execute the Central Vista project in New Delhi – had been rejected for the Thane-Ghodbunder to Bhayandar tunnel and elevated road projects.
On May 29, the SC reiterated that the difference of nearly Rs 3,100 crore between the two bidders was 'not a small amount'.
Solicitor General Tushar Mehta representing MMRDA submitted that the disqualification was not on 'flimsy or fanciful grounds' and the authority would justify its decision and respond to the court's queries during the next hearing. This hearing took place on Friday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
33 minutes ago
- Time of India
Health-focused food brands clock revenue gains on back of quick commerce, wider reach
HighlightsHealth-focused brands in India see rapid growth with rising incomes. Investment in health-centric snacks surged to $65 million in H1 2025. Quick commerce fuels demand for healthier snack options across cities. Rising consumer awareness in India, higher disposable incomes and expansion of quick commerce are driving growth for health-focused food brands such as Farmley, Yoga Bar, The Whole Truth Foods and SuperYou, multiple founders and investors told momentum has helped several players improve financial performance and attract investments, as healthier snack options gain popularity across urban and smaller 'healthy snacking' market is estimated to be worth about $4 billion and is projected to grow at a pace 3.5 times faster than that of traditional packaged snacks, according to estimates by investors. In FY25, Farmley, backed by DSG Consumer Partners, reported a 60 per cent jump in operating revenue from the previous year to Rs 370 crore. It was Rs 170 crore in FY23. The company became Ebitda profitable in FY25, cofounder Abhishek Agarwal told ET. The Whole Truth, backed by Peak XV Partners, is learnt to have ended FY25 with revenue of around Rs 200 crore, up by over 200 per cent from FY24, when it had registered an 80 per cent increase from the previous year, according to regulatory filings sourced from business intelligence platform Tofler. The company is operating at an annualised revenue run rate (ARR) of Rs 250–300 crore, a person aware of the financials said. SuperYou, launched in November 2024 and cofounded by actor Ranveer Singh, is growing at 25–30 per cent month-on-month and is operating at an ARR of around Rs 80 crore. Rising VC interest This year, investor interest in health-focused food brands has increased. The segment received about $65 million in funding in the first half of 2025, compared with $15 million in all of 2024 and about $20 million in 2023, according to data from Tracxn. In May, Farmley raised $40 million in a round led by global consumer-focused investment firm L Catterton, with participation from DSG Consumer Partners. In February, The Whole Truth secured $15 million in a funding round led by Belgian investment fund Sofina. Salad Days, another emerging player, raised $3.5 million in its maiden institutional round, led by V3 Ventures and Client Associates Alternate Fund (CAAF). Agarwal of Farmley said nearly 40 per cent of the company's overall business now comes from quick commerce platforms. 'The segment is really heating up across price ranges and categories. Consumers are actively seeking good options in the healthy segment that deliver on taste and nutrition,' he said. Growth in quick commerce channels and increasing disposable incomes, he said, are prompting more consumers to experiment with better-for-you snacks. 'How we tap into demand from tier-III cities will define how we scale offline distribution,' Agarwal said. According to data from Unicommerce, online orders for healthy staples and snacks in FY25 increased by 60 per cent from the previous year, with tier-III cities showing a 90 per cent jump. Mass brands gain Executives said investors are favouring companies that balance affordability with health-focused positioning. 'When you're Ebitda profitable, targeting a larger TAM and offering a health-plus product at Rs 30–40, you tend to attract significantly more investor interest,' said Suhasini Sampath, cofounder of Yoga Bar, which is operating at an ARR of Rs 300–400 crore. 'By contrast, premium brands with niche audiences and high valuations are facing more scrutiny.' Peak XV's principal Abhishek Mohan said quick commerce has transformed how consumers discover and access food brands. 'Impulse categories like snacks are ideally suited to the format, and healthy brands that deliver on convenience are seeing a strong lift,' he said. Peak XV has backed The Whole Truth and Mumbai-based The Health Factory, which makes high-protein breads. The growing preference for clean-label and additive-free foods is no longer limited to the metros and tier-II cities. Fireside Ventures vice president Ankita Balotia said the key challenges now lie in improving access, affordability and taste. 'Consumers today are far more conscious about what they and their families consume. But price sensitivity and taste parity with mainstream snacks are still important,' she said. Among larger incumbents, Marico-backed True Elements' revenue in FY24 grew by 33 per cent from the previous year to Rs 76 crore, while Tata Consumer's Soulfull business posted a 48 per cent increase to Rs 95 crore.
India Gazette
39 minutes ago
- India Gazette
Deendayal Port Authority unloads 79,780 tonnes of coal in 24 hours
Kachchh (Gujarat) [India], May 31 (ANI): The Deendayal Port Authority (DPA) of Kandla set a new record by unloading 79,780 tonnes of steam coal from MV KMAX RULER in just 24 hours. In a post on social media platform X, the DPA said that the record-breaking operation was carried out with the coordinated efforts of vessel agent M/s Genesis Shipping, stevedore M/s Shiv Shipping Services, and importer M/s Gallant Metals. 'Record Reloaded at DPA! In a stellar feat of efficiency, MV KMAX RULER unloaded 79,780 tons of Steam Coal in just 24 hours at Deendayal Port, Kandla -- setting a new benchmark!,' the X post of Deendayal Port Authority added. DPA has set ambitious targets after exceeding its own target of handling 150.16 million tonnes of cargo in the financial year 2024-25. Speaking to ANI in April this year, DPA Chairperson Sushil Kumar Singh said that the port aims to handle 170 million tonnes of cargo, representing a growth rate of over 10 per cent. This new target is expected to redistribute cargo volumes among other ports. Kandla is a seaport in India situated in the Kachchh District of Gujarat. Kandla Port is the gateway port for states like Punjab, Haryana, Jammu, and Kashmir, as well as the rich industrial belt of West and North India. Kandla Port, located on the Gulf of Kutch on the northwestern coast of India, was constructed in the 1950s after India's independence as the chief seaport serving western India. According to its website, it is the largest port in India in terms of the volume of cargo handled. Deendayal Port Authority, India's busiest major port in recent years, is gearing up to add substantial cargo handling capacity with private sector participation. The Union Government is actively working to enhance the capacity of the port. Earlier in the month, Prime Minister Narendra Modi virtually inaugurated and laid the foundation stone for several transformational projects of DPA, worth over Rs 1,100 crore. (ANI)
Time of India
an hour ago
- Time of India
Industry bodies hail cut on crude oil customs duty, call it timely support for refiners
Representative image NEW DELHI: Industry associations Solvent Extractors' Association (SEA) and Indian Vegetable Oil Producers' Association (IVPA) have welcomed the government's decision to reduce the basic customs duty on crude edible oils to 10 per cent, calling it a timely intervention that supports domestic refiners and discourages imports of finished products. Announced on Friday, the policy reduces the basic customs duty on crude palm, soybean, and sunflower oils from 20 per cent to 10 per cent. The effective import duty now stands at 16.5 per cent, down from 27.5 per cent. In contrast, refined edible oils continue to attract a 32.5 per cent basic duty, with an effective duty of 35.75 per cent. The move follows concerns raised by the industry over rising imports of refined palmolien. Over the past six months, SEA and IVPA had urged the government to widen the duty gap between crude and refined edible oils to protect local refiners. 'The government's decision to increase the duty differential from 8.25 per cent to 19.25 per cent is a bold and timely move. It will discourage imports of refined palmolien and shift demand back to crude palm oil, thereby revitalizing the domestic refining sector,' said SEA President Sanjeev Asthana. He added that while overall edible oil import volumes may remain unchanged, domestic prices are likely to fall, benefitting consumers. India, which imports over 50 per cent of its edible oil requirements, brought in 159.6 lakh tonnes worth Rs 1.32 lakh crore during the 2023–24 oil marketing year. Key sourcing countries include Malaysia and Indonesia for palm oil, and Brazil and Argentina for soybean oil. IVPA President Sudhakar Desai expressed appreciation for the government's acceptance of their recommendation to expand the duty gap, calling the step a boost for domestic manufacturing. SEA Executive Director B V Mehta described the revised duty structure as 'a win-win situation for vegetable oil refiners and consumers, as local prices will go down due to lower duty on crude oils.' Previously, the narrow 8.25 per cent duty gap between crude palm oil (CPO) and refined palmolien had incentivised finished product imports. Refined palmolien accounted for over 20 per cent of total palm oil imports in 2023–24, rising to nearly 27 per cent in the first half of 2024–25. On May 29, the cost-and-freight (C&F) price of refined, bleached, and deodorised (RBD) palmolien was USD 45 per tonne lower than that of crude palm oil, further skewing trade in favour of refined imports. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
