Nagpur-Mumbai Samruddhi Corridor project cost goes up

The estimated cost of the Nagpur-Mumbai Samruddhi Corridor road project has risen to Rs 49,247 crore from the earlier Rs 46,000 crore due to inflation, a Maharashtra government official said Tuesday.

The estimated expenditure on land acquisition has decreased, but the interest on loans and the inflation in last two years led to increase in the total estimated cost by more than Rs 3,000 crore, the official said.

The government has sanctioned Rs 6,388 crore towards interest on loans, he said.

As per the proposal submitted by the Maharashtra State Road Development Corporation (MSRDC) on August 24, 2016, the estimated cost of the project was Rs 46,000 crore.

The cost of construction was estimated at Rs 24,000 crore, whereas Rs 6,000 crore were estimated as interest liability.

The official said that in the last two years, due to inflation, the estimated cost has reached Rs 49,247 crore.

The actual construction, it is estimated, will cost Rs 29,029 crore, an increase of Rs 5,029 crore over earlier estimate.

The government plans to borrow Rs 28,000 crore instead of the initial estimate of Rs 24,000 crore from banks and financial institutions.

The MSRDC will contribute equity share of Rs 27,335 crore, the official said.

The MSRDC will raise a loan of Rs 5,000 crore from various government-run corporations, and the state government will pay it Rs 6,396 crore towards the interest on this loan.

When MSRDC starts collecting toll from vehicles, it will pay back the amount to the government.

The corridor will have 25 toll plazas, and the toll will be collected for 40 years.