₹15K crore loan for 52 Maharashtra irrigation works
The Fadnavis government, which assumed power in the backdrop of the controversy of 0.1% irrigation despite spending ₹70,000 crore in 10 years, decided to focus on projects that were nearing completion.
The state government on Wednesday decided to borrow ₹15,000 crore to complete 52 irrigation projects. In another development, the state finance department gave a guarantee to a state agency to raise ₹4,000 crore from banks to build the Mumbai-Nagpur Expressway, a dream project of chief minister Devendra Fadnavis.
The Fadnavis government, which assumed power in the backdrop of the controversy of 0.1% irrigation despite spending ₹70,000 crore in 10 years, decided to focus on projects that were nearing completion.
It decided to put 114 projects which were at initial stage of implementation on the backburner, and not start new projects. It identified 199 of the ongoing 313 irrigation projects that can near completion in three years and were estimated to cost ₹54,000 crore.
The government has already raised a loan of ₹31,800 crore from National Bank for Agricultural and Rural Development (Nabard), with assistance from the Central government for interest subvention for 147 projects that need ₹39,358 crore. The Central government has admitted to give ₹6,978 crore for these projects under two schemes.
The state cabinet on Wednesday decided to raise ₹15,000 crore more from the open market for the remaining 52 projects, which could not get Central funding and are aimed to be completed in by 2023-24. The funding is expected to be raised at about 6% interest rate in the next few months.
“The finance department will decide from whom the loan has to be raised. It may take another couple of months for approval. We expect the 52 projects to be completed by 2023-24,” said an official from the water resources department.
The completion of the 52 projects will add to the irrigation potential by 2.90 lakh hectares and 891 million meter cube of water.
Sanjay Ghanekar, secretary, water resources department, said, “We expect to complete the 52 projects in three years after the loans are approved. The other 147 projects are put under various schemes, including Prime Minister Krishi Sinchai Yojana, Baliraja Jalsanjeevani Yojana and Rural Infrastructure Development Funds, and are at various stages of completion. We expect these projects to be completed by 2021-22.”
The 147 projects are expected to create the irrigation potential of 11.88 lakh hectares.
Meanwhile, the state finance department gave its nod to secure a loan for CM Fadnavis’s pet project Mumbai-Nagpur Expressway. The 701-km expressway is estimated to cost ₹55,335 crore.
Fadnavis, who had backed the project since its inception, intends to complete formalities to start the project before the model code of conduct for the Assembly elections.
According to a government resolution (GR) issued by the state finance department on Wednesday, the state will offer a bank guarantee of ₹4,000 crore towards the interim loan being raised by the Maharashtra State Road Development Corporation (MSRDC) from State Bank of India-led banks. The GR also asked the MSRDC to achieve financial closure for the project by September 15. The guarantee will be for a period of one year, the GR added.
Despite the MSRDC agreeing to mortgage its land bank as a security against the loan, the banks sought a guarantee from the state government.
The chief minister met representatives of the banks to resolve the issue. As the MSRDC is a cash-strapped agency, the state agreed to stand guarantor for the loan to push the project.
Of the total cost, ₹27,650 crore is estimated for civil construction, while ₹13,000 crore is for land acquisition.
The MSRDC is raising a loan of ₹25,000 crore, of which ₹16,000 crore is approved, a senior MSRDC official said. It is in the process of getting ₹9,000 crore from multilateral financial agencies.