Maha Backs 12,998cr In Loans For New Biz Dist, New Outer Ring Rd

Nagpur: The Maharashtra govt on Monday cleared state guarantees totaling almost 13,000 crore for two major Nagpur infrastructure projects — the New Nagpur Business District anchored by the International Business and Finance Centre (IBFC), and the proposed New Outer Ring Road with four truck-and-bus terminals. Both these projects will be funded through loans from HUDCO, the central govt's housing and urban finance corporation.Finance department issued separate GRs in this regard. For IBFC project, govt sanctioned guarantee of 4,999.28 crore, covering principal loan of 3,000 crore and projected interest of 1,999.28 crore. For New Outer Ring Road and terminal project, guarantee stands at 7,999.13 crore, covering a principal of 4,800 crore and projected interest of 3,199.13 crore. Both guarantees are revised versions of earlier approvals. The IBFC guarantee supersedes a GR dated Nov 12, 2025, which covered only the 3,000 crore principal. Similarly, the Outer Ring Road guarantee replaces a GR dated Oct 9, 2025, which covered only the 4,800 crore principal. Nagpur Metropolitan Region Development Authority (NMRDA) will borrow the loans from HUDCO at quarterly interest rate of 8.60%, repayable in 60 equal instalments over 15 years. NMRDA has a 12-month window from April 20 to draw down the loans.The IBFC project is part of larger 11,300 crore New Nagpur Business District being developed over 692.06ha in Mouza Ladgaon and Mouza Godhani in Hingna. NMRDA will implement the project with NBCC (India) Ltd as consultant. The loan will fund land acquisition phase, while approximately 3,500 crore has been allocated for Phase I development.The administration has surveyed 269 survey numbers in Ladgaon and 98 in Godhani, covering 456.41ha in Ladgaon and 173.02ha in Godhani. A committee is finalising compensation rates, after which notices will be issued to farmers. The govt has offered compensation at 5 times the prevailing land rate. Revenue minister and Nagpur guardian minister Chandrashekhar Bawankule assured farmers will also receive a developed plot of 1,500 sqft per acre of land acquired within the project area. The total acquisition cost is now expected to exceed 4,000 crore, nearly 1,000 crore above the original estimate.The New Nagpur Business District will be built around IBFC, positioning Nagpur as a business and finance hub. The project is expected to generate over 5 lakh jobs, particularly in knowledge-based industries, startups.The Outer Ring Road will encircle Nagpur and include truck-and-bus terminals at Turagonda and Shirul in Hingna, Parsad in Kamptee, and Itagaon in Parseoni, aimed at easing freight and passenger movement.State's guarantee kicks in only if NMRDA is unable to repay. NMRDA must submit monthly repayment status reports to UDD and Finance depts, and a half-yearly financial report every March 31 and Sept 30. A guarantee fee of 0.50/100 will apply, payable every 6 months.
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