Mumbai: The State government will form a Special Purpose Vehicle (SPV) called the Nagpur-Mumbai Super Communication Expressway Company Limited to construct the Nagpur-Mumbai expressway. Formed under the Companies Act, 1956, the SPV will be a subsidiary of the Maharashtra State Road Development Corporation (MSRDC), which was executing the project till now.
A government officer said, “The SPV is aimed at bringing financial discipline and is tasked with creating confidence among prospective investors. It will look after issues of raising funds through investment from various sectors for the 710-km expressway. The SPV will also facilitate borrowing of funds for the project.”
According to the proposal, MSRDC will hold a majority 51% stake in the SPV. The revenue from the road would be used to repay the loan and maintain the expressway. The SPV’s directors will comprise the Commissioner, Mumbai Metropolitan Region Development Authority, CEO, Slum Redevelopment Authority, VP and CEO, MHADA, VP and MD, MIDC and MD, CIDCO.
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The project’s estimated cost is ₹46,000 crore, of which the Asian Development Bank is expected to provide ₹13,750 crore, while MSRDC has roped in SBICAP for the remainder. Close to ₹24,000 crore is needed for civil construction, while the rest is to be spent on land acquisition, development of nodes, contingencies and financial charges and utility shifting. The SPV will look after these aspects.
The MSRDC has been appointed to construct the expressway and for greenfield alignment. The government also approved the scheme under land pooling to offer land cost to the owner or partnership in the project. The SPV will be the facilitator for the project.