Maharashtra Cabinet Approves Major Road Improvement Project with International Financing

Mumbai: The Maharashtra State Road Improvement Project was approved by the state cabinet on Tuesday, aiming to significantly enhance the quality of road infrastructure across the state. This move is part of the state’s broader goal to become a ‘one trillion dollar economy’.

The project will be financed with $1 billion each from the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) over two phases. “The project will be implemented over a period of three years to improve the roads in the state as per Indian Road Congress (IRC) standards. Under the financing of both AIIB and NDB, a total cost of $715 million (about Rs 6,221 crore) is expected in the first phase, including external financing of $500 million and state government participation of $215 million,” stated officials.

The total cost of both phases is estimated to be around Rs 12,442 crore each. “Under this project, priority will be given to the improvement of roads in the ‘Growth Corridors’, which have high traffic volumes and more than 40% commercial vehicle traffic. This will help in increasing the efficiency of transport on major economic, industrial, agricultural, and commercial routes in the state,” they added.

Under AIIB financing, the Public Works Department will undertake the improvement of approximately 750 km of roads in the first phase through a competitive bidding process on an EPC (Engineering, Procurement, and Construction) basis. Similarly, it is planned to undertake the improvement of approximately 750 km of roads in the first phase under NDB financing.

“The structure, reimbursement process, and working procedure of the loan assistance received from both institutions are similar. These funds will be used for the modernization of important road corridors in the state. This decision will improve the quality of the road network in the state, making transportation safer, faster, and more efficient. It will greatly help in reducing the cost of freight transportation, boosting industry and trade, and accelerating the economic development of the state,” officials said.

The project is expected to have a significant impact on the state’s economy by enhancing connectivity and reducing logistical costs, thereby making Maharashtra a more attractive destination for investment and business activities.