Mumbai: The State government decided to form a Nagpur-Mumbai Super Communication Expressway Company Limited, a special purpose vehicle (SPV) under the Companies Act, 1956, for the ambitious Nagpur-Mumbai Expressway Project.
The State cabinet approved the proposal to form an SPV for the ambitious project. This SPV will be a subsidiary company of the MSRDC. The proposed SPV will ensure financial discipline and will also create confidence among prospective investors. The SPV will look after the issues of raising funds for the project through investment from the various sectors for the 710-km expressway. The SPV will also facilitate in borrowing funds for the project.
According to the proposal, MSRDC will hold majority (51 per cent) stake in the SPV, is expecting revenue of over Rs 1,000 crore annually from the project once it is operational. The revenue would be used to repay the loan from that and for the maintenance of the expressway.
The estimated cost of the project is Rs 46,000 crore. Asian Development Bank (ADB) is expected to fund Rs 13,750 crore for the project, while MSRDC has roped in SBI caps to raise the remaining funds for the project. Around Rs 24,000 crore is required for civil construction, while the rest is required for land acquisition, development of nodes, contingencies and financial charges, utility shifting. The SPV will look after all these aspects.
The MSRDC has been appointed for construction of the Samruddhi Expressway, greenfield alignment. The government also approved the scheme under land pooling, to offer land cost to the owner or partnership in the project. If any landowner is not ready to allow his land to be acquired, the land will be acquired under the land acquisition act. The SPV will be the facilitator for the project.
According to the MSRDC officials, the corporation is expected to get possession of 60 per cent of the required land along the proposed route by February-end. Though officials are claiming to float construction bids by March 2017, the crucial detailed project report is not expected to come in before May 2017.
The project, which will pass through the most backward districts and 30 tehsils, will also have 24 development nodes or prosperity hubs, which include truck terminus, commercial sites, knowledge city, IT industries, manufacturing units.