The Uttar Pradesh government is likely to approach private lenders for financing the 628-km Ganga Expressway project which is estimated to cost more than Rs 36,000 crore. Once completed, it would be the world’s longest access controlled expressway.
So far, the state government has sourced credit from public sector banks to the tune of several thousands crore rupees for the ongoing projects like Ganga Expressway, Purvanchal Expressway, Bundelkhand Expressway and Gorakhpur Link Expressway.To expand the financing pool for the Ganga Expressway, the UP Expressway Industrial Development Authority (UPEIDA) Board decided to tap loans from the Reserve Bank of India (RBI) licensed banking entities. However, the private sector lenders would be expected to offer credit on the same terms and conditions like the nationalised banks.
Recently, the UPEIDA Board approved a proposal to raise Rs 2,900 crore from Housing and Urban Development Corporation Limited (HUDCO) for acquisition of land for the Ganga Expressway project. Listed on the NSE and BSE, HUDCO is a Union government undertaking administered by the Ministry of Housing and Urban Development.
The Ganga Expressway will entail acquisition of 6,556 hectares of land and traverse Meerut, Amroha, Bulandshahar, Budaun, Shahjahanpur, Farrukhabad, Hardoi, Kannauj, Unnao, Rae Bareli, Pratapgarh and Prayagraj districts.
Earlier, the UPEIDA had cleared a proposal for raising loans amounting to Rs 5,900 crore for the Bundelkhand Expressway from a consortium of banks led by the Bank of Baroda (BoB), and comprising the Union Bank of India, the Indian Bank, the Bank of Maharashtra and the UCO Bank. So far, BoB has offered loans worth Rs 4,000 crore for different expressway projects in the state, of which, Rs 2,000 crore is meant for the 296-km Bundelkhand Expressway.
Besides, the UPEIDA will float a separate wing for land acquisition, development of infrastructure and management of UP Defence Industrial Corridor project. It is also expected to sign a Memorandum of Understanding (MoU) with the Indian Navy for promoting the defence manufacturing sector in the corridor, having nodes in Lucknow, Kanpur, Jhansi, Agra, Aligarh and Chitrakoot.
