Tuesday, September 8, 2009

SEA LINK: POOR COLLECTION-EFFECT OF COST ESCALATION

The Toll operator and The Maharastra State Road Development Corporation (MSRDC) are worried that the sea link usage is only around 40% and it is yet to achieve the break-even. The investments made in this kind of mega projects are huge. And because of undue delay in implementing the project, for various reasons, the cost has gone up many folds. Had the project been completed as envisaged without any time and cost delay the Toll could have as low as Rs 20.00 which would have made both the operator and the commuters who are using the bridge very happy. When cost goes up like what happened to this project, naturally the gestation period are usually is very long. Hence, it is not proper to expect the venture to break even from the day one. The present toll of Rs 50 for one way usage is on the very high side which is acting as a deterrent for some people to use this route. The MSRDC should reduce the toll to Rs 30.00 to enable more people to use the route which will increase the revenues. This move will further reduce the traffic congestion in the adjoining areas. More over the sea-link has been built for the benefit of general public and even if MSRDC loses money for some period it should not worry too much about it and to this effect the Toll agreement should be modified.

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