The Uttar Pradesh cabinet has approved a proposal for the funding of the Gorakhpur Link Expressway project by a consortium of public sector undertaking (PSU) banks led by Punjab National Bank.  

The other partner banks are Union Bank of India, Canara Bank, Indian Bank, CU Bank and Bank of India. 

The Punjab National Bank will extend credit of Rs 750 crore while the total credit limit for the project approved by the cabinet is Rs 2,250 crore.

The amount will be drawn by the UP Expressway Industrial Development Authority in next three years against the requirement of the funds. 

The Punjab National Bank has agreed to immediately release Rs 350 crore and the process of the formation of the consortium will take time.  

The PNB has also agreed to waive the up front fee and processing fee for providing the credit.   

The repayment of the entire loan of Rs 2,250 crore  will be made in next 15 years in 48 instalments, to be payable every quarter.

For ensuring the timely repayment of the loan, the UPEIDA will open an escrow account in the lead bank or Punjab National Bank where all the receipts from the toll tax will be deposited and the first charge on the account will be of the lenders.

Meanwhile, the cabinet on Monday also approved a new agency for collecting toll tax on the Agra-Lucknow Expressway. 

The UPEIDA had fixed the reserve price of Rs 274 crore but the bidders had quoted higher price. The contract was awarded to the highest bidder, Sahkar Global Limited, which quoted Rs 402 crore. 

The toll on the expressway will be levied at two toll plazas and 15 ramp plazas. The toll collection agency will also provide five ambulances and 10 patrolling vehicles on the expressway.