Govt projects safest bet for financial institutions: Fadnavis

Maharashtra chief minister Devendra Fadnavis today urged financial institutions and other funding agencies to invest in government projects, claiming them to be the safest bet.

Fadnavis also said that sustainability is the key to high growth rate and high infrastructure development that the country is looking at.

"I would like all funding agencies, sovereign funds, banks and multilateral funding agencies to look towards government projects because that is the safest place to invest," he said while addressing a session at the third annual meeting of the Asian Infrastructure Investment Bank (AIIB), which kick started here today.

He said the "best people" to finance in the country are the governments, while adding that, "unfortunately the financing agencies mostly are looking at the private sector to invest in."

The chief minister said that Maharashtra is in "final" talks with the AIIB for funding the Metro projects, and the process is likely to be concluded soon.

"However, on the Mumbai-Nagpur prosperity corridor, we have just initiated talks with the AIIB though the state has already tied up with some Indian banks for the projects," Fadnavis added.

Officially called the Nagpur Mumbai Super Communication Expressway (NMSCE), the 700-km road project is estimated to cost Rs 46,000 crore, and will pass through Nagpur, Buldhana, Amravati, Wardha, Washim, Thane, Aurangabad, Akola, Bhiwandi and Nashik districts.

"It's not only a road project as we have to develop 24 nodes which will require some additional investments. We are not only talking to AIIB but also to some sovereign funds which have shown interest in developing these nodes," he said.

The chief minister said that the country is looking at a very high growth rate and infrastructure development, for which sustainability is the key.

Fadnavis said that Maharashtra is targeting to be the first state to have a USD 1-trillion economy in the country and infrastructure-enabled growth will help it achieve the same.

"We envisage Maharashtra growing at a CAGR of 15.4 per cent from the current 10 per cent for which we require lot of investment which we are trying to procure," he said.

Meanwhile, Fadnavis informed the state government recently held talks with a Dubai-based sovereign fund who had shown interest in equity investment to develop Daharavi into a smart cluster.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)