Maharashtra Secures Rs 21,500 Crore Funding Commitment For Multi-Modal Corridor To Ease Mumbai Traffic Woes

In a major boost to infrastructure development, the Maharashtra state government has secured funding commitments worth Rs 21,500 crore from multiple lenders for the construction of a key road project near Mumbai, reported Bloomberg.

The Maharashtra State Road Development Corporation (MSRDC), a state-run agency, has received lender approvals for credit lines to finance the high-end road, which is part of a broader infrastructure revamp of the Mumbai Metropolitan Region—one of the most densely populated urban zones in the world.

The new road, referred to as the "Multi-Modal Corridor," aims to ease chronic traffic congestion and improve road quality in and around the city.

The Rural Electrification Corporation Ltd. (REC), National Bank for Financing Infrastructure and Development (NaBFID), and India Infrastructure Finance Company Ltd. (IIFCL) are the largest lenders on the deal according to the sources, who declined to be named.

According to them, REC has committed Rs 10,000 crore, while NaBFID and IIFCL will each lend Rs 3,000 crore. REC confirmed its involvement to Bloomberg.

Additional funding support will come from banks including Punjab National Bank, Bank of India, Bank of Maharashtra, and UCO Bank.

Disbursement of funds will take place in phases, and construction is slated to begin in next financial year starting April. The project is currently in the process of inviting bids for execution.

The Union government allocated Rs 2.78 lakh crore to the roads and highways sector for fiscal year 2025, more than triple the budget from five years ago, as noted by Crisil Ratings.