SENA govt makes ₹3,500-cr infusion in Nagpur e-way project, may be name it after Bal Thackeray

The Maharashtra cabinet on Wednesday cleared additional capital of ₹3,500 crore for the Mumbai-Nagpur expressway to speed up the project. The Shiv Sena-led government

The Maharashtra cabinet on Wednesday cleared additional capital of ₹3,500 crore for the Mumbai-Nagpur expressway to speed up the project. The Shiv Sena-led government also suggested naming the project after Sena founder Bal Thackeray.

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The 701-km expressway, also known as the Samruddhi Mahamarg project — estimated to cost ₹55,335 crore — was mooted by former chief minister Devendra Fadnavis in the previous BJP-led government, and it is expected to cut down travel time between Nagpur and Mumbai by up to eight hours.

“The project will help the 10 districts it (e-way) passes through, and will aid in the development in backward regions. It will reduce travel time and make the journey in around seven hours... the chief minister has asked the department to start the process to name it after Balasaheb,” said senior Shiv Sena leader and minister, Eknath Shinde, after the cabinet meeting. The suggestion was unanimously backed by the other ministers in the cabinet.

After the Maharashtra Vikas Aghadi government came to power, it was believed that the project may be put on the back burner, primarily due to the loan it required.

However, the state government has infused capital into the project to expedite the construction of the expressway. Shinde said the project is expected to help the regions it would pass through and will be completed in 36 months.

According to a statement from the chief minister’s office, the share capital of ₹3,500 crore will be infused in addition to the existing capital of ₹27,335 crore cleared for the project.

RL Mopalwar, vice-chairman and managing director of Maharashtra State Road Development Corporation (MSRDC), the project implementing agency, said the additional capital will help reduce the debt burden of the project by ₹2,500 crore.

“The physical work has commenced and about 22% has been completed, excluding the land acquisition work,” Mopalwar said. MSRDC has proposed to raise ₹9,525 crore for the expressway by monetising 23 land parcels along the Mumbai-Pune expressway, and one each, at Napean Sea Road and Bandra in Mumbai. Mopalwar said that monetisation of the land parcels will help the corporation bring down the loan burden on the agency and the government.

Of the total cost, the corporation will raise ₹28,500 crore through a loan consortium of 13 domestic banks and financial institutions at an interest rate ranging between 9.75% and 10.2%.

The state government has given a guarantee to raise more than half the loans from the open market. With the state equity raised to 49.40%, the state-owned MSRDC will have to raise ₹27,335 crore, of which ₹9,525 crore will come from the sale of land parcels owned by the corporation.