Maharashtra Government Approves Major Loan for Nagpur-Chandrapur Expressway Land Acquisition
The Maharashtra state government has given the green light to raise a substantial loan of over Rs 2,353 crore specifically for acquiring land to construct the highly anticipated 204-kilometer Nagpur-Chandrapur access-controlled expressway. This financial package includes a principal amount of Rs 1,470 crore, complemented by an interest outlay of Rs 860 crore, marking a significant step forward in the state's infrastructure development agenda.
Expressway as an Extension of Samruddhi Mahamarg
This new expressway is designed as a strategic extension of the existing Samruddhi Mahamarg, which currently connects Nagpur to Mumbai, thereby enhancing regional connectivity and boosting economic growth in eastern Maharashtra. The project's alignment was revised to a new 204-kilometer route after careful consideration of environmental and logistical factors. The earlier proposed course was altered due to the presence of a critical tiger corridor and extensive coal mines, which posed significant ecological and operational challenges.
Loan Approval and Government Resolution
A government resolution was officially issued on Friday, authorizing the raising of this loan to facilitate land acquisition along the revised expressway route. The acquisition process will be meticulously carried out by the Maharashtra State Road Development Corporation (MSRDC), which is also entrusted with the construction of the expressway itself. According to reliable sources, MSRDC plans to borrow the required funds from the Housing and Urban Development Corporation (HUDCO), selected as the preferred lending partner due to its reputation for easy availability of funds and favorable terms.
HUDCO has a proven track record of providing long-term funding to MSRDC for similar road project land acquisitions in the past, ensuring a smooth and efficient financial arrangement.
Broader Infrastructure Initiatives and Land Requirements
In addition to the Chandrapur extension, MSRDC is actively engaged in constructing other vital extensions of the Samruddhi Mahamarg that will connect key districts such as Bhandara, Gondia, and Gadchiroli. A senior MSRDC official revealed that the total debt required to fund land acquisition across all these interconnected projects amounts to approximately Rs 4,200 crore, underscoring the scale of Maharashtra's road infrastructure expansion.
The Chandrapur expressway segment will commence from the Seldoh interchange on the Samruddhi Mahamarg and extend to Navaegaon (Mor) on the Durg-Hyderabad highway, covering a distance of 192 kilometers. An additional 11-kilometer link will further connect this stretch to Chandrapur, completing the route. Sources indicate that MSRDC may need around 2,000 hectares of land for the entire expressway corridor, highlighting the extensive scope of the acquisition process.
Financial Sustainability and Government Support
To ensure the loan's repayment, the debt will be serviced primarily through toll collection revenues generated from the expressway. However, the state government has committed to bridging any potential financial gaps that may arise. The government resolution explicitly states, "Government of Maharashtra will make good shortfall, if any, from the revenue stream of MSRDC from the state funds for making timely repayment of HUDCO's loan instalments." This assurance provides a safety net, ensuring that the project remains financially viable and on schedule.
This development follows a recent proposal cleared for raising a loan worth Rs 20,000 crore for the Shaktipeeth Expressway connecting Goa, reflecting Maharashtra's aggressive push towards enhancing its highway network and fostering regional development through strategic infrastructure investments.
