Mumbai makeover

There are big infrastructure expansion plans to transform Mumbai into a world-class city.

The Bandra-Worli

ONLY good infrastructure stands in the way of Mumbai being a world-class city. So said D. Subbarao, Union Finance Secretary, at the recently concluded Infrastructure Investment conference organised by the U.S.-India CEO Forum in Mumbai. Infrastructure has been the mantra that has been driving Mumbai and Maharashtra for the past decade. Setting the time for the transformation, Chief Minister Vilasrao Deshmukh said after the annual budget presentation that in the next two or three years there would be a rapid change. We lack infrastructure of international standards. When foreign investors come they feel the difference. We should be on a par with the best cities in the world.

The lack of basic infrastructure is felt all the more because Mumbai has all other facilities (industry, stock exchanges, port and airport) needed for a good business climate. Deshmukh said the Centre-appointed committee to look into the infrastructural needs of the city had submitted its report and there was the possibility of the nerve centre of the citys business shifting to Navi Mumbai or to the MahaMumbai Special Economic Zone of Reliance in Raigad district.

Some projects have been long awaited. The Worli-Bandra sea link project, which will provide an alternative road link from Bandra to Worli in south Mumbai, is expected to be completed by March 2008.. The deadline is an ambitious one since the project is nowhere near completion owing to the numerous agencies involved in decision making and budget allocation. The other problem that dogs this project is that although it will certainly offer high-speed transportation into the city, not much thought has been given to the congestion it could cause.

The possibility of there being a bottleneck at both ends of the Worli-Bandra sea link is strong. This problem becomes even more serious when one considers that the second phase of the project is to extend into the heart of south Mumbais old business district Nariman Point. The island city narrows considerably at this point.

Mumbais suburban commuter rail network received a boost when the second phase of the Mumbai Urban Transport Project was allotted a budget of Rs.5,000 crore. The allocation will largely be put to use for upgrading and improving the rail network. The grand plan for an underground metro is expected to become a reality. The project is into its second phase. Mumbais infrastructure plans are so big that international companies have been expressing interest in participating in them. Japan has been showing particular interest in financing road and rail infrastructure in Maharashtra and also some irrigation projects.

The biggest bugbear is that there is a shortage of bankable projects. Funds are readily available but there is a paucity of sound projects to invest in. One of the reasons for the delay in the completion is the rehabilitation of project-affected people. Work on the Mumbai international airport at Sahar came to a standstill because of the 70,000 hutments on the airports periphery. Power is another important aspect of infrastructure.

While the Mumbai island has an enviable system installed by Tata Power, the rest of the city and the suburbs are not as lucky. Considering the fact that the business centres are already out of the magic zone, the issue of stable and adequate power supply has to be added to the infrastructure list to make Mumbai world-class.

The second phase

While the Chief Minister has said that the power situation will ease once the controversial Dabhol project is restarted, there is still a need for serious long-term thinking on power security a fact that is not disputed by the Chief Minister. Before signing a power-purchase agreement with Ratnagiri Gas and Power Private Limited (erstwhile Dabhol power), the Chief Minister warned industries that the agreement would not solve the power crisis. It would only ease it.

The first phase of the project generates 700 MW and once the third phase is completed in December, the plant will generate 2,100 MW. State-sponsored generation units at Paras and Parli generate a total of 500 MW, adding to the States power capacity.

The power crisis resulted from poor planning, and this has created a situation of imbalance. While industrial growth has been rising dramatically, adequate power infrastructure has been nil. No new power plant has been built in the State in the last decade. With the Enron debacle, the demand for power grew at the rate of 10 per cent every year.

In a bid to keep up the flow of investors into the State, the government has been buying power. While this has worked for the short term, it is certainly not a solution. Actually, the power purchase has helped to maintain the level of load-shedding. In view of the urgency of the situation, the Chief Minister hopes to add 11,000 MW of power within the next three years.

This is expected to give the necessary boost to the infrastructure projects that both Maharashtra and Mumbai need badly.