Viraj.DeshpandeNagpur: Maharashtra govt has approved a guarantee for a Rs2,353.94 crore loan to be raised by Maharashtra State Road Development Corporation (MSRDC) from HUDCO for land acquisition of the proposed Rs21,702 crore Nagpur-Chandrapur Access-Controlled Expressway.The Finance Department issued the govt resolution on July 21, approving the guarantee for a loan comprising Rs1,493.31 crore principal amount and a possible interest component of Rs860.63 crore.The approval follows the decision of Cabinet Infrastructure Committee taken on April 22, 2026. The funds will be utilised exclusively for acquiring land required for the expressway project.The govt guarantee will be valid for 12 months from the date of issuance of the resolution and will be restricted to Rs2,353.94 crore. The loan tenure has been fixed at 15 years.According to the resolution, MSRDC will remain the principal debtor and will be responsible for repayment of the entire loan. The state govt has clarified that the liability arising from the loan will not fall on the state exchequer.The guarantee will not cover penal interest or any other charges imposed due to delay in repayment by MSRDC. HUDCO will have to inform the govt within 90 days in case of any default in repayment.The financial institution will not be allowed to provide loans beyond the approved limit without prior permission from the state govt. MSRDC will also not be permitted to raise loans from any other financial institution for the same purpose.The 204.799-km-long expressway was approved for implementation through the Maharashtra State Road Development Corporation (MSRDC) on Feb 20, 2026. The project will run from Seldoh in Wardha district to Navegaon More (Ghatkul) in Chandrapur district and is aimed at creating a high-speed, access-controlled road link between the two regions.The expressway will be developed as a four-lane corridor in a 2+2 configuration and will feature seven interchanges along its route. A total of 2,159.087 hectares of land will be required for the project.An independent escrow account will be opened in the name of MSRDC for managing the loan amount, revenue generated from the project and repayment of the loan. The corporation will have to ensure that the borrowed funds are used only for land acquisition of the expressway.MSRDC will pay a guarantee fee of 0.50% per annum on the outstanding contingent liability. The fee will be deposited every six months into the state treasury.
