MSRDC plans to raise subordinate debt for Mumbai-Nagpur expressway project

The Maharashtra State Road Development Corporation (MSRDC) plans to raise subordinate debt for the Mumbai-Nagpur Communication Expressway Project. It plans to raise Rs 10 billion each from the Maharashtra Industrial Development Corporation, the Maharashtra Housing and Development Authority, the City and Industrial Development Corporation and the Slum Rehabilitation Authority, over five years. The MSRDC also plans to raise Rs 270 billion in loans for the project. Further, the state government is considering the option of levying a surcharge on fuel consumption in the 10 districts covered by the expressway for servicing the debt. Besides, a special purpose vehicle has been proposed to be formed for meeting financial requirements of the project, in which the MSRDC will hold a 51 per cent stake.