The State Cabinet on Tuesday cleared the proposal to extend bank guarantee to raise a loan of ₹4,000 crore for the Mumbai-Nagpur Samruddhi Highway, a pet project of Chief Minister Devendra Fadnavis.
With the total cost of the 700-km highway touching ₹55,000 crore, the government has allowed the Maharashtra State Road Development Corporation (MSRDC) — the implementing agency — to raise ₹28,000 crore through loans from private banks. “The process of sanctioning loans through private banks is likely to take longer. The agency needs money at the earliest to continue with the work of the highway. The government’s guarantee would mean that the agency will get the money soon,” an officer said.
According to sources, the monthly bills to contractors amount to ₹1,200 crore. Around ₹6,000 crore has already been spent on compensation to project-affected people. As per the arrangement with banks, the State is to pay the interest on loans availed for the project till the road is complete. After the construction is over, the MSRDC will repay the banks through toll and other avenues.
The super expressway, which is scheduled to be completed in 2021, will cut down the travel time between Mumbai and Nagpur to less than nine hours. With motorists expected to pay over ₹1,200 as toll for a one-way journey, it will be one of the most expensive roads in the country.
