Public sector banks to finance Nagpur-Mumbai Expressway project
In order to boost Chief Minister Devendra Fadnavis’s pet project, the Mumbai-Napur Expressway (also known as Samruddhi Corridor), public sector banks have agreed to provide finance for the project. Reportedly, the State Bank (SBI) of India has agreed to lend Rs 85 billion, which is the highest amount that has been received for the project.
Other than SBI, banks such as Punjab National Bank, Bank of Baroda, Bank of Maharashtra and the Life Insurance Corporation of India (LIC) have agreed to finance the project.
Being constructed by the Maharashtra State Road Development Corporation, the estimated cost of the project is Rs 500 billion. Of the total cost of the project, nearly Rs 260 billion is required for the construction of the expressway. The corporation is reportedly falling short of Rs 30-Rs 40 billion to the required Rs 260 billion. The consortium of banks, therein, have agreed to pitch in the shortfall.
At present, nearly 95 per cent of the land acquisition of the project has been completed and has thus paved the way for banks to lend money for the project. However, the acquisition in the stretches of Amravati and Aurangabad is yet to commenced. Nearly 8,311 hectare has been acquired for the project. Of the 701 km of the total length of the project, construction of almost 600 km is expected to be completed by December 2020.