Nagpur IBFC gets Rs 3,000-crore state-backed push for land acquisition

The Maharashtra government has approved a state guarantee of Rs 3,000 crore for a Housing and Urban Development Corporation (HUDCO) loan to acquire land for the proposed International Business and Finance Centre (IBFC) in Nagpur.

The project, part of the state’s ‘New Nagpur’ initiative, will be developed by the Nagpur Metropolitan Region Development Authority (NMRDA) across 692.06 hectares in the Godhani (Khurd) and Ladgaon (Khurd) villages of Hingna tehsil.

The state finance department issued a Government Resolution (GR) formalising the cabinet decision taken on 3 September. As per the GR, the state plans to borrow a total of Rs 6,500 crore from HUDCO for the IBFC, with the Rs 3,000-crore guarantee covering the first phase focused on land acquisition.

The guarantee will remain valid for 12 months from the date of the GR. The government has set strict conditions, stating that NMRDA will be the principal debtor and the state will not be responsible for delayed payments or penalties.

“In case of default, the mortgaged movable and immovable property of the authority must be sold to recover the loan before invoking the government guarantee,” the GR states.

NMRDA must file monthly progress updates on repayment and provide half-yearly financial status reports to the urban development and finance departments. A guarantee fee of Rs 0.50 per Rs 100 of the outstanding loan will be charged annually, payable every six months on 1 April and 1 October. Late payments will attract 16 per cent interest for the first three months and 24 per cent thereafter.

Any sale of mortgaged assets will require clearance from a committee comprising officials from the urban development and finance departments, followed by final approval from the state government.

The IBFC aims to position Nagpur — Maharashtra’s second capital in the Vidarbha region — as a major business and finance hub in central India.

(With inputs from agencies)