The Uddhav Thackeray.-led Maha Vikas Aghadi government has decided to provide additional share capital of Rs 3,500 crore for the Mumbai-Nagpur Samruddhi Corridor and waive stamp duty on Memorandums of Understanding (MoUs) between agencies working on this expressway project.
Public works department officials said the revised estimated cost of the project is Rs 55,335 crore. While the Nagpur-Mumbai Super Communication Express Way Limited has raised loans, officials claimed there was there was a shortfall of Rs 3,500 crore.
“Hence, the government has decided to provide capital of the same amount. This would help to save interest up to Rs 2,500 crore on the loan amount. Also, the government will not have to provide loan guarantees for a Rs 16,500-crore loan. So, the decision will be beneficial for the project and will save the government money,” said an official.
Share capital of Rs. 3,500 crore will be infused in addition to the existing capital of Rs. 27,335 crore, which is in the form of Rs. 3,500 crore from Maharashtra State Road Road Corporation (MSRDC), Rs. 5,500 crore from state Public Sector Undertakings, waiver of royalty on minor minerals at Rs. 2,414 crore, interest on loans during the construction period at Rs. 6,396 crore and the cost of land at Rs. 9,525 crore.
A statement released by the chief minister’s office (CMO) said the additional share capital will reduce the debt burden of the project by Rs. 2,500 crore. It will also remove the need to provide a guarantee for a loan of Rs 16,500 crore. The Cabinet also approved changes in the financial plan.
The revised cost of the project is Rs. 55,335 crore, and a loan of Rs. 24,500 crore was approved for the special purpose vehicle Nagpur-Mumbai Super Communication Expressway. The entire project will be completed in the next three years. In another decision, the government has decided to waive stamp duty and registration charges for various contracts being signed by agencies building and funding the project.
Meanwhile, The government is also now to name the under-construction expressway after Shiv Sena founder Balasaheb Thackeray.