Pune: Government-guaranteed loan for ring road of Rs 35 billion

The Maharashtra State Road Development Corporation's ring road project would receive a loan of Rs 35 billion from HUDCO (MSRDC). The government has pledged to guarantee this loan. The government has made it clear that the road corporation will be entirely responsible for repaying this debt. As the government has guaranteed the funding for this project, the acquisition of land will proceed more quickly. It is anticipated that the circular road project will relieve city traffic congestion. East and West are the two phases that this project went through. The project is around 173 km long in all. The project's land purchase is anticipated to cost a total of Rs 105.2 billion, while the project's road building is anticipated to cost Rs 177.23 billion. As money will need to be set aside in advance for land acquisition, the state government has opted to borrow money from HUDCO. During the November cabinet meeting, it was approved. This loan will have a 15-year term. The government will contribute the money needed for land acquisition in addition to the loan that HUDCO has approved. The duration of the loan secured by the government guarantee is one year. The state government's ambitious initiative is the circular/ring road. 80 % of the land needed for this project must be obtained before actual project development may begin. Therefore, it was essential to obtain this sum in order to buy land. The project will move forward quickly if the loan has a government guarantee. Also read: PM is likely to open two new MMRDA road projects in Mumbai Panchakula administration plans to improve Morni's infrastructure