Cabinet Approves Rs 12,442 Crore Maharashtra Road Improvement Project
The Maharashtra state cabinet, meeting at the Mantralaya in Mumbai on Tuesday, approved the Maharashtra State Road Improvement Project to upgrade the state's road network and accelerate its goal of becoming a 'one-trillion-dollar economy'. The project will involve major external financing from international development banks to modernize key transport corridors over the next three years.
The cabinet approved financing of $1 billion each from the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) to fund the road project in two phases. The initiative aims to improve roads across the state to align with Indian Road Congress (IRC) standards.
In the first phase, the project is expected to cost a total of $715 million, which is approximately Rs 6,221 crore. This initial funding includes $500 million in external financing alongside a state government participation of $215 million. According to officials, the total cost of both phases of the project will be around Rs 12,442 crore each.
Under this initiative, priority will be given to improving roads in 'Growth Corridors'. These specific routes are characterized by high traffic volumes, with commercial vehicles making up more than 40 percent of the traffic. Government officials noted that this focus will help increase transport efficiency on key economic, industrial, agricultural, and commercial routes.
For the first phase of the project, the Public Works Department will execute works on approximately 750 kilometers of roads funded by the AIIB. These works will be awarded through a competitive bidding process on an EPC (Engineering, Procurement, and Construction) basis. Simultaneously, another 750 kilometers of roads are planned for development under the NDB financing in the first phase.
Officials stated that the loan assistance from both the AIIB and NDB shares a similar structure, reimbursement process, and working procedure. The modernized corridors are expected to make transportation safer, faster, and more efficient, thereby reducing freight transportation costs and boosting industry and trade in Maharashtra.
