The Uttar Pradesh government got a shot in the arm with the Bank of Baroda deciding to sanction a loan of Rs 2000 crore for the government’s much-hyped Bundelkhand Expressway as a consortium loan.
Managing Director and Chief Executive Officer of Bank of Baroda, PS Jaykumar, assured the loan to Chief Minister Yogi Adityanath after a meeting with him in Lucknow on Thursday.
A government official said that Jaykumar had earlier given in-principle commitment of Rs 1,500 crore, however on the initiative of the Chief Minister, the bank sanctioned Rs 2,000 crore for the Bundelkhand Expressway project as a part of consortium loan.
“With this sanction of investment, now other banks would be able to fast-track loan proposals and UPEIDA (UP Expressways Industrial Development Authority) shall be able to attain expeditious financial closure of the loan of Rs 7,000 crore for this project with the approval of the state government,” the official said.
Bundelkhand Expressway project is one of the prestigious projects of the UP government and would help in expediting socio-financial development of the region.
The expressway has been conceived as a 296-km-long road originating at Bharatkoop (Chitrakoot) and merging with Agra-Lucknow Expressway at Kudrail village in Etawah.
“The industrial corridor and defence corridor proposed by UP government alongside Bundelkhand Expressway would further add to industrial and economic activities in the region, encouraging development of Bundelkhand,” the official said.
The UPEIDA has already purchased around 95 per cent of land required for the expressway from farmers and preparations for starting civil construction work are in advanced stage.
UPEIDA Chief Executive Officer Awanish Kumar Awasthi said the state government had approved a project cost of about Rs 14,850 crore for Bundelkhand Expressway out of which Rs 7,000 crore would be raised by UPEIDA as consortium loan from banks and the balance would be made available to UPEIDA by the state government.
“Out of this loan, Rs 2,000 crore shall be invested by Bank of Baroda. The bank has also agreed to play the role of leader of the consortium being formed by UPEIDA with other banks interested in investment,” he said.
Earlier, Bank of Baroda had invested a sum of Rs 2,000 crore for Purvanchal Expressway project which is at an advanced stage of progress.