In a major push to transform Nagpur into a national economic hub, the Maharashtra government has approved state guarantees worth nearly ₹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, enabling large-scale funding through loans from the Housing and Urban Development Corporation (HUDCO).
Break-up of the mega guarantee
The state has sanctioned a guarantee of ₹4,999.28 crore for the IBFC project, which includes a ₹3,000 crore principal loan and ₹1,999.28 crore in projected interest. For the Outer Ring Road and terminal project, the guarantee stands at ₹7,999.13 crore, comprising ₹4,800 crore principal and ₹3,199.13 crore in interest.These revised guarantees replace earlier approvals issued in October and November 2025 that covered only the principal amounts, indicating a significant expansion in financial commitment.
The Nagpur Metropolitan Region Development Authority (NMRDA) will raise the loans from HUDCO at an interest rate of 8.60%, 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 ₹11,300 crore New Nagpur Business District project, spread across 692.06 hectares in 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 ₹3,500 crore has already been earmarked for Phase I development.
Land acquisition and farmer compensation
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 land acquisition cost is now expected to exceed ₹4,000 crore — nearly ₹1,000 crore higher than initial estimates — underscoring the scale and complexity of the project.
The New Nagpur Business District, centred around the IBFC, is expected to position the city 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 serve as a key logistics corridor, 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 both freight and passenger movement.
Accountability and safeguards
The state guarantee will be invoked only if NMRDA defaults on repayments. To ensure financial discipline, the authority 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 substantial financial backing, the Maharashtra government has signalled its intent to fast-track Nagpur’s infrastructure growth. However, the success of these projects will hinge on timely execution, financial prudence, and efficient land acquisition.
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