Cabinet Approves Maharashtra Road Project With Rs 12,442 Crore Funding Per Phase
On Tuesday, the Maharashtra state cabinet approved the Maharashtra State Road Improvement Project during a meeting at the Mantralaya in Mumbai. The major infrastructure initiative is designed to upgrade the state's road network and accelerate progress toward achieving a one-trillion-dollar state economy.
To fund the massive undertaking, the cabinet approved securing $1 billion in financing from the Asian Infrastructure Investment Bank (AIIB) and another $1 billion from the New Development Bank (NDB). The project will be rolled out in two distinct phases over a three-year implementation period.
The first phase of the road improvement scheme is projected to cost $715 million, which is approximately Rs 6,221 crore. This initial phase will be funded through $500 million in external financing from the global banks, alongside a state government participation share of $215 million. Officials stated that the total cost for both phases of the project will be around Rs 12,442 crore each.
Under the approved plan, all road development works will be executed to meet the strict standards set by the Indian Road Congress (IRC). The state plans to prioritize road improvements within designated "Growth Corridors." These corridors are characterized by high overall traffic volumes and feature commercial vehicle traffic exceeding 40 percent.
The physical works for the first phase will cover about 1,500 kilometers of roads in total. Approximately 750 kilometers of road works funded by the AIIB will be managed by the Public Works Department, which will award contracts through a competitive bidding process on an Engineering, Procurement, and Construction (EPC) basis. Another 750 kilometers of road upgrades are scheduled to be undertaken using the NDB financing.
State officials confirmed that both international lending institutions share similar loan structures, reimbursement processes, and working procedures. The capital from both sources will be directed entirely toward modernizing key road corridors.
According to the government, the upgraded network will make freight and passenger transportation safer, faster, and far more efficient. By lowering freight transit costs, the project aims to support agricultural, industrial, and commercial sectors across Maharashtra.
