Pune: Rs 3,500 Crore Loan Guaranteed By Government For Ring Road
Pune, 8th February 2023: A loan of Rs 3,500 crore will be raised from HUDCO for the ring road project undertaken by the Maharashtra State Road Development Corporation (MSRDC). This loan has been guaranteed by the government. The government has clarified that the entire responsibility of paying this loan will be with the road corporation. The land acquisition will speed up as the loan for this project is guaranteed by the government.
The circular road project is expected to remove the traffic congestion in the city. This project has been done in two phases – East and West. The total length of the project is about 173 km. A total cost of Rs 10,520 crore is expected for the land acquisition of the project, while Rs 17,723 crore is expected for road construction. The state government has decided to take a loan from HUDCO as the funds for land acquisition will be required in advance. It was approved in the November cabinet meeting. The term of this loan will be 15 years. Apart from the loan sanctioned by HUDCO, the funds required for land acquisition will be provided by the government. The term of borrowing against government guarantee will be one year.
The circular/ring road is an ambitious project of the state government. Actual project work cannot be started unless 80 per cent of the land required for this project is acquired. So it was necessary to get this amount for land acquisition. With a government guarantee for this loan, the project will go ahead at speed.
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