The Maharashtra government has revised the estimated cost for its ambitious road development initiative, increasing the budget to ₹36,964 crore. This revised figure pertains to the construction of 6,000 kilometres of pavement quality concrete (PQC) roads across the state. The new plan, approved by the public works department and announced through a government resolution, marks a significant shift in financial strategy and project management.
Under the updated hybrid annuity model (HAM), the state will finance 30% of the project, amounting to ₹11,089 crore, while the remaining 70% will be raised by the concessionaire through market sources. This adjustment contrasts with the previous 60:40 financing ratio. The Maharashtra State Infrastructure Development Corporation (MSIDC), established last May, will oversee the project as the concessionaire. MSIDC will engage major contractors and financial institutions to execute the project, with payments managed through the corporation.
The decision follows concerns raised by the state’s finance and planning departments earlier this year about the financial burden of the previously estimated ₹28,500 crore cost. The earlier plan, which involved asphalt roads, was reconsidered due to its impact on state finances. The revised plan, approved by the state cabinet despite reservations from key ministers, is part of a broader review of 345 HAM projects totalling ₹63,850 crore. This project, along with others under review, reflects a strategic realignment in Maharashtra’s infrastructure development approach.
