The Maharashtra government has approved a state guarantee for a ₹4,800 crore loan to be raised by the Nagpur Metropolitan Region Development Authority (NMRDA) from HUDCO, paving the way for major infrastructure development in the Vidarbha region.
The funds will be used for land acquisition related to the ₹13,748 crore Outer Ring Road (ORR) project and for constructing four truck and bus terminals. The decision, taken during the Cabinet meeting on September 3, was formalised through a Government Resolution (GR) issued by the finance department on October 9.
The proposed 148-km-long and 120-metre-wide ORR will serve as Nagpur’s third ring road, enhancing connectivity to key national routes, including the Samruddhi Mahamarg, and highways leading to Hyderabad, Bhopal, and Jabalpur. Around ₹4,800 crore will facilitate the acquisition of 1,697.18 hectares across 99 villages in nine talukas.
NMRDA will serve as the principal debtor, with loan agreements structured as per formats approved by the law department. The state guarantee will remain valid for 12 months, with repayment safeguards including the auction of mortgaged properties before invoking the state’s guarantee, ensuring fiscal discipline and project accountability.
