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Cabinet nod for Rs 4,000 crore bank guarantee for Mumbai-Nagpur expressway loan

MUMBAI: The state cabinet on Tuesday cleared a proposal to offer a bank guarantee of Rs 4,000 crore towards the interim loan that is being raised by the MSRDC with the help of SBI-led group of banks for the Rs 55,000-crore Mumbai-Nagpur Super Communication Expressway also known as Maharashtra Samruddhi Mahamarg. This will help expedite the ambitious project, which the pet project of chief minister Devendra Fadnavis, said officials.




The MSRDC is raising a loan of Rs 25,000 crore, of which Rs 16,000 crore has already been approved. “The process to get remaining Rs 9,000 crore loan is under way. In the meantime, the banks have agreed to give Rs 4,000 crore loan to which state has approved its bank guarantee of equal amount. The decision is a big boost to the project,” said MSRDC managing director Radheshyam Mopalwar.

The expressway will connect 24 districts and will have 26 nodes which will be developed into industrial hubs and have agro-processing units too. There are a total 16 packages of 45kms each on which different companies are working for construction and engineering activities.

Mopalwar said that with funding in place, the development work has begun on several stretches of the 701-km long corridor and the project is ‘ahead of its targets’. Sources said that the expressway project is likely to be ready six months before the June 2021 deadline as “filling and grubbing or leveling activities are almost 75% complete”.

The engineering cost of the project is Rs 34,000 crore as the road will be concretised and a safety wall will be built along the entire stretch.

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