Mumbai-Nagpur expressway: Motorists from 10 districts may pay for it, here’s how
Mumbai city news: The cess will be levied on the sale of petrol and diesel, to raise additional revenue for the repayment of loans.Updated: Jun 13, 2017 09:31 IST
Vehicle owners in the 10 districts through which the proposed 706-km Mumbai-Nagpur expressway is going to pass might have to shell out more every time they refuel, as the Maharashtra government is mulling levying cess on petrol and diesel.
According to the Maharashtra State Road Development Corporation—the nodal agency for the project—the cess might be levied on the sale of petrol and diesel, to raise additional revenue for the repayment of loans.
The ambitious expressway will start from Nagpur and pass through Wardha, Amravati, Washim, Buldhana, Jalna, Aurangabad, Ahmednagar, Nashik and Thane districts.
MSRDC officials said that the decision to levy cess was taken at the highest level by the government. “We are securing loans worth several thousand crores for the project. Our major source of revenue, which is toll, will start after the road is constructed, but our interest servicing and repayment will start earlier,” an official said.
The official added that the percentage of cess on the sale of petrol and diesel will be decided later. “We have estimated first-year revenue from toll at Rs1,000 crore, which is a conservative estimate. To bridge the shortfall, the government is considering levying the cess,” said a senior MSRDC official.
The Rs46,000-crore project will link Mumbai with state’s second capital Nagpur, with an eight-lane access controlled road like the Mumbai-Pune Expressway. It will not only cut the travel time between the two cities drastically, but state government officials said that it will also become a game-changer for the state.
First Published: May 30, 2017 10:21 IST