Funding for Nagpur e-way to burden state
State to pay 9.5% interest on loan, mortgage land in return for completing Devendra Fadnavis’ pet project
interest rate, the loans we get from international funding agencies is linked to US dollars so it does translate to around 5 to 6 % anyway,” he said.
MSRDC has already taken a loan of ₹5,000 crore from five other state public agencies including Mumbai Metropolitan Region Development Authority (MMRDA), City and Industrial Development Corporation (Cidco), Maharashtra Housing and Area Development Authority (Mhada), Maharashtra Industrial Development Corporation (MIDC) and Slum Rehabilitation Authority (SRA) to pay for its acquisition costs. It will pay an interest of around 8.14% to these agencies for this loan.
MSRDC is hoping to complete the project within 30 months. The work is expected to take off before the end of this year as tenders for 13 out of the 16 construction packages have been given out. The remaining is expected to be given by end of September.
The Phase II of the project involves building 17 nodes or smart cities along the expressway. MSRDC has also issued Request for Proposal documents for designing these nodes. The land for the nodes will be acquired only through land pooling method which means there will be no cash component for acquisition.