SBI, other banks agree to finance Nagpur-Mumbai Samruddhi Corridor

Representative image | Photo: Wikipedia Commons

A consortium of banks led by State Bank of India has agreed to provide finance for Chief Minister Devendra Fadnavis' pet Nagpur-Mumbai 'Samruddhi Corridor' expressway project, a top official said Wednesday.

SBI has agreed to lend the highest amount, Rs 8,500 crore, said Bhushan Gagrani, principal secretary in the Chief Minister's Office.

"Other lenders include Punjab National Bank, Bank of Baroda, Bank of Maharashtra as well as the Life Insurance Corporation (LIC) of India," he said.

The estimated cost of the project, being constructed by the Maharashtra State Road Development Corporation, is around Rs 50,000 crore, of which around Rs 26,000 crore are required for the construction of the expressway.

"We were falling short of Rs 3,000-4,000 crore to reach the target of Rs 26,000 crore. The consortium of banks has agreed to share that shortfall too. It has solved the major issue of financial support," Gagrani said.

He added that banks believe in the financial viability of the project. Almost 95 per cent of the land acquisition is complete, Gagrani added.

Acquisition in some stretches in Amravati and Aurangabad regions is yet to be done.

The corridor will have 25 toll plazas, and the toll will be collected for 40 years.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel