Financiers express interest for Mumbai-Nagpur super expressway
November 4, 2016
Maharashtra State Road Development Corporation – the nodal agency for the Rs 46,000-crore Mumbai Nagpur Expressway – is in talks with SBI Caps and lenders like State Bank of India (SBI) and IDBI Bank to fund the project, according to senior bankers and government officials. Reportedly, a host of sovereign wealth funds have also evinced interest in part-funding this project.
According to a banker, representatives from SBI caps and SBI met MSRDC officials early last week to discuss the proposal. Confirming the development, Radheshyam Mopalwar, vice-chairman and managing director, MSRDC said that it has sent the proposal to government and is awaiting approval. “SBI caps is proposing to be the arranger and will bring in seven to eight banks on board. They are already in discussions. Now we will soon officially sign up with SBI Caps,” he explained but declined to disclose the names of interested foreign investors.
SBI Caps recently informed MSRDC that foreign investors are interested in the project. Mopalwar said due diligence for the project would be conducted by the likes of KPMG, E&Y, etc. and they would in turn rope in the likes of Cyril Amarchand Mangaldas, etc.
“We require $4 billion. Our engineering cost is around Rs 27,000 crore and SBI Caps is giving some indicative figures what they can get us from the domestic market but let’s see what the exact amount is,” Mopalwar said.
The Nagpur-Mumbai Expressway, also called the Maharashtra Samruddhi Corridor is the first project in Maharashtra being set up by pooling land rather than by acquiring it. “This is the first effort to get into partnership with the farmers, wherein we are giving them developed land more than even what a real estate developer would offer. Since, the land being offered is along the 24 inter-changes planned along the highway, the value realisation of the land on completion of the project will be exponentially higher,” Mopalwar had earlier said.
The proposed prosperity greenfield corridor between two major cities of Nagpur and Mumbai will be a 710-kilometre long four-lane super fast expressway. It will cut the distance which presently takes up to 16 hours to just 8 hours. The expressway will run through 10 districts, 22 talukas and 345 villages. However, the benefits will spill over to as many as 27 districts since other areas too will be connected to the main road.