PNB To lead consortium of banks lending to UP's Gorakhpur Link Expressway

State govt will borrow Rs 2,250 crore in all for the project, PNB's share stands at Rs 750 crore

Punjab National Bank (PNB) will lead the consortium of banks that are providing financial assistance to the 91-kilometre-long Gorakhpur Link Expressway project in Uttar Pradesh.

The UP cabinet has approved a proposal in this regard. PNB is providing a Rs 750 crore loan for the expressway project. The state government will borrow Rs 2,250 crore in all to complete the project. According to Chief Executive Officer (CEO) of UP Industrial and Expressways Authority (UPIEDA), Awaneesh Awasthi, Union Bank of India, Canara Bank, Indian Bank, Uco Bank, Bank of India and Bank of Maharashtra will be part of the consortium led by PNB. He said work is going on full swing on the expressway and till date 13.47 per cent land filling and 73.56 per cent CNG work has been done. 

Awasthi said UPIEDA would avail the credit facility from banks in three years as per the need. PNB had agreed to release Rs 375 crore before the formation of the consortium, and waive the processing charges and upfront fees for UPIEDA. The authority will take similar commitments from other banks. He said the loan for the expressway would be repaid in 48 quarterly installments over 12-15 years. A moratorium of three years on repayment of loan has also been fixed.

Besides the UPIEDA will open an escrow account in the lead bank where the revenue coming from the toll and other means will be deposited.

It may be mentioned that link expressway will begin from Jaitapur village in Gorkahpur and go up to Azamgarh. The 91.352 Km link expressway will cover Gorakhpur, Ambedkar Nagar, Sant Kabirnagar and Azamgarh.