Nagpur: In a major boost to Nagpur’s transformation into a national economic hub, the Government of Maharashtra has approved state guarantees worth nearly Rs 13,000 crore for two flagship infrastructure projects, the New Nagpur Business District anchored by the International Business and Finance Centre (IBFC), and the proposed New Outer Ring Road with integrated transport terminals.
The Finance Department issued separate Government Resolutions (GRs) on Monday, paving the way for large-scale funding through loans from Housing and Urban Development Corporation (HUDCO).
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Break-Up of the mega guarantee
The government has sanctioned a guarantee of Rs 4,999.28 crore for the IBFC project, covering a Rs 3,000 crore principal loan and Rs 1,999.28 crore in projected interest. For the Outer Ring Road and terminal project, the guarantee stands at Rs 7,999.13 crore, including Rs 4,800 crore principal and Rs 3,199.13 crore interest.
These revised guarantees replace earlier approvals issued in October and November 2025, which had covered only the principal amounts, indicating a significant scaling up of financial commitment.
The Nagpur Metropolitan Region Development Authority will raise the loans from HUDCO at an interest rate of 8.60% per quarter, repayable over 15 years in 60 equal instalments. The authority has a 12-month window starting April 20 to draw down the funds.
The IBFC forms the core of the ambitious Rs 11,300 crore New Nagpur Business District project, spread over 692.06 hectares across Mouza Ladgaon and Mouza Godhani in Hingna tehsil. The project will be implemented by NMRDA with NBCC (India) Ltd acting as consultant.
While the loan will primarily fund land acquisition, around Rs 3,500 crore has already been earmarked for Phase I development.
Land acquisition and farmer aompensation
Authorities have surveyed 269 land parcels in Ladgaon and 98 in Godhani, covering over 629 hectares. A committee is finalising compensation rates, after which formal notices will be issued to landowners.
Revenue and Guardian Minister Chandrashekhar Bawankule has assured that farmers will receive compensation at five times the prevailing market rate, along with a developed plot of 1,500 sq ft per acre acquired within the project area.
However, the acquisition cost is now expected to exceed Rs 4,000 crore, almost Rs 1,000 crore higher than initial estimates, highlighting the scale and complexity of the project.
The New Nagpur Business District, centred around the IBFC, is expected to position Nagpur as a major business and financial services hub, with projections of generating over 5 lakh jobs, particularly in knowledge-driven sectors and startups.
Complementing this, the New Outer Ring Road will form a crucial logistics corridor around the city, with planned truck-and-bus terminals at Turagonda and Shirul (Hingna), Parsad (Kamptee), and Itagaon (Parseoni). The project aims to decongest city traffic and streamline freight and passenger movement.
Accountability and aafeguards
The state guarantee will be invoked only if NMRDA defaults on repayments. To ensure financial discipline, NMRDA has been directed to submit monthly repayment reports to the Urban Development and Finance Departments, along with half-yearly financial statements.
A guarantee fee of 0.50% will be charged, payable every six months.
With this massive financial backing, the Maharashtra government has signalled its intent to fast-track Nagpur’s infrastructure growth, though the success of these projects will depend heavily on timely execution, financial prudence, and effective land acquisition.
