Rs. 9,800 crore for new construction loan to cover construction of road project

New construction loans of Rs.9,800 cr. have been extended to the State Government and private contractors for the construction of the road projects, a senior government official said.

The new loans are being extended to all the state-owned firms for the road project, which has been under development for about seven years, the official said on Thursday.

The loan, which is to be repaid with a fixed amount, was sanctioned by the Finance Ministry in May 2016.

The first phase of construction of a 2,00,000-km road connecting Nagpur to the neighbouring town of Karol Bagh is expected to be completed by 2021.

The total cost of the project is about Rs.1,857.5 crore.

The government has also sought help from private developers for construction of rail and road lines.