The Maharashtra State Road Improvement Project received approval from the state cabinet on Tuesday, marking a significant step toward enhancing road infrastructure and supporting the state's ambition to achieve a one trillion dollar economy. The cabinet sanctioned financing of $1 billion each from the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) for the project, which will be executed in two phases over three years.
Project Details and Financing
The project aims to upgrade roads to Indian Road Congress (IRC) standards. In the first phase, the total cost is estimated at $715 million (approximately Rs 6,221 crore), comprising $500 million in external financing and $215 million from the state government. The second phase will also cost around Rs 12,442 crore, bringing the total investment to approximately Rs 24,884 crore across both phases.
Focus on Growth Corridors
Priority will be given to roads in designated 'Growth Corridors,' which experience high traffic volumes and over 40% commercial vehicle movement. This strategic focus aims to enhance transport efficiency on major economic, industrial, agricultural, and commercial routes. Under AIIB financing, approximately 750 km of roads will be developed in the first phase through a competitive bidding process on an Engineering, Procurement, and Construction (EPC) basis. Similarly, an equal length of 750 km will be undertaken under NDB financing.
Streamlined Implementation
Officials noted that the structure, reimbursement process, and working procedures for loan assistance from both institutions are similar, ensuring smooth implementation. The funds will be utilized for modernizing key road corridors across the state.
Expected Benefits
The project is expected to significantly improve road quality, making transportation safer, faster, and more efficient. It will also reduce freight transportation costs, boost industry and trade, and accelerate Maharashtra's economic development.
