In order to upgrade Maharashtra infrastructure, the state government has decided to set up a Special Purpose Vehicle (SPV) to raise about Rs 1 lakh crore. The money will be used to fund several ambitious projects across the state.
This SPV, named as Mahainfra, will be the only window to aggregate lands held by various departments. These lands will be scrutinised which will be helpful in raising funds through low-cost loans, bonds or investments. Also, the state government may convert Mahainfra into a non-banking finance company.
Mahainfra can resolve many Maharashtra’s key infrastructure concerns such as 400 incomplete irrigation projects worth Rs 80,000 crore cost, the approved Mumbai-Nagpur super communication highway for Rs 40,000 crore and the long-awaited upgrade of state highways (Rs 40,000 crore). It will also help in recovering distribution losses of the Maharashtra State Electricity Distribution Company (Rs 30,000 crore).
“The SPV would be a need-based financing, fundraising and advisory agency of the government. The government will also recruit a team of subject experts from varied fields for increasing the efficiency of the institutions,” says Sudhir Mungatiwar, Finance Minister, Maharashtra.
Source: ET Realty