 "India has 198,000 dollar millionaires: Study")
The Asian Development Bank (ADB) might loan $1 billion to the 793-km Mumbai-Nagpur communication super expressway project, which entails a total investment of Rs 31,500 crore. A high-level ADB team visiting Mumbai from Monday will hold talks with the Maharashtra State Road Development Corporation (MSRDC), the nodal agency for the proposed project. The expressway is expected to reduce the travelling time between the two cities to eight hours from 16 hours at present.
The construction cost for the eight-lane expressway is estimated at Rs 30 crore a km, which involves six lanes of super communication highway and two lanes of service roads, utility shifting, bypass and other structures.
An MSRDC official, who will be involved with the talks with ADB, told Business Standard: “ADB generally gives $350 million for each project. They have a kitty of $2 billion for India. However, they don't have tender-ready proposals to lend. Therefore, ADB is keen to make an exception for MSRDC at the instance of Maharashtra Chief Minister Devendra Fadnavis. ADB is excited about the expressway and might agree to provide up to $1 billion loan in phases.”
The official also said that the Japan International Cooperation Agency (JICA) has also expressed its desire to provide loan for the proposed expressway. However, MSRDC will take a final call if JICA reduces the time generally taken for loan approval. MSRDC also plans to mobilise funds from banks and financial institutions and through bonds.
Fadnavis has set a target of December 2019 for the completion of the expressway. MSRDC hopes to kick-start construction by the end of September or mid-October this year.
Maharashtra’s public works minister and MSRDC chairman Eknath Shinde said the state government had decided to incorporate the land-pooling model as envisaged in the Maharashtra State Highway Bill for the expressway. MSRDC will soon launch the acquisition of 10,000 hectares for the project, which also involves development of 27 townships and setting up of 24 agriculture prosperity centres.
According to the land-pooling model, farmers will get about 30 per cent developed land with amenities, which could be used to set up industries or other units. Farmers will also get Rs 50,000 an hectare for non-irrigated land and Rs 1 lakh every year for irrigated land for a period of 10 years.
