Mumbai: Chief Minister Devendra Fadnavis appealed to banks to fund the construction of Mumbai-Nagpur super communication expressway. The CM’s appeal indicated that the government has insufficient funds for the project.
Fadnavis held a meeting with top officials of over 15 private and public sector banks in Mumbai and appealed to them to invest in the construction of the road. The total cost of the project is Rs 40,000 crore.The government press note said the bank executives agreed and will respond positively the project.
However, sources claimed that only seven to eight banks have extended in-principle approval to fund the project and the loan amount is up to Rs 7,000 crore. That is turning out to be one of the biggest worries for the State government.
“The amount available is not enough. The government has to find more finance agencies for funding of this project,” said an official who attended the meeting.
At a meeting, the government officials made a presentation of the repayment model to the officials of financial institutions. Toll and commercial revenue from the road will be used to repay the loan and the period may go up to 25 – 30 years.
The Housing and Urban Development Corporation (HUDCO), under the Ministry of Housing and Urban Poverty Alleviation will extend a loan of up to Rs 1,768 crore for land acquisition. Maharashtra State Road Development Corporation (MSRDC), the executing agency for the project, has roped in SBI Capital Markets to arrange loans.
The expressway, also known as Maharashtra Samruddhi Corridor (MSC), is a 710 km road. Farmer organisations, especially in Shahapur tehsil of Thane district and Nashik district are up in arms against the project and have refused to hand over lands to the government.