Maharashtra has secured Rs 21,500 crore (USD 2.5 billion) in funding commitments from lenders for a road project near Mumbai, according to sources. The Maharashtra State Road Development Corporation Ltd., a state-run entity, has received lender backing for credit lines to finance the high-end roadway. Part of a broader infrastructure revamp in one of the world’s most densely populated metro regions, the project aims to ease traffic congestion and enhance road quality near Mumbai.
The major lenders on the deal, according to the sources, are India Infrastructure Finance Company Ltd., the Rural Electrification Corporation Ltd., and the National Bank for Financing Infrastructure and Development. Accordingly, they have committed to lending Rs 3,000 crore, Rs 100 billion, and Rs 3,000 crore, respectively, they said.
After being questioned by Bloomberg News, REC stated that it had committed a term loan of 10,000 crore rupees to MSRDC. Questions for comment were not answered by MSRDC or NaBFID.
In order to promote growth, Prime Minister Narendra Modi has highlighted the need for infrastructure. In fiscal year 2025, the government upped the budgetary allocation for the road and highways department to Rs 2.78 lakh crore, more than tripling the amount five years earlier, according to Crisil Ratings.
The road work will begin in April of the following fiscal year, and the credit facilities will be disbursed in phases, the persons stated. Recently, bids were being accepted for the construction of the “Multi-Modal Corridor,” as the route is called.
Source: The Economic Times
