Considering the response to the issue, MSRDC has asked the Maharashtra government to extend its guarantee to an additional Rs 200 crore. According to sources, the government has agreed. Sinha said MSRDC will not retain more than Rs 600 crore, because the credit rating is for this amount and retaining more can mean a lower rating. The debt issue comprises bonds of three tenures. The five-year, one-month bond carries an interest of 13.65 per cent payable annually, the 10-year and 12-year bonds carry an interest of 14.15 per cent. According to Sinha, if the subscription exceeds Rs 600 crore, MSRDC will chose to retain the bonds with thelonger tenure and return the 5 year bonds. MSRDC had earlier planned an Rs 800-crore issue, which was split into two issues of Rs 400 crore each on the state government's request, as they were hard pressed to come up with a guarantee for a large amount. The current debt issue is the second one by the MSRDC.

About a year ago, MSRDC had raised Rs 1,180 crore for constructing the Mumbai-Pune expressway and 55 flyovers in Mumbai. While the construction of the Mumbai-Pune expressway is three weeks behind schedule, most of the flyovers have been constructed ahead of schedule, saving the MSRDC several crores in escalation and supervision costs. According to Sinha's estimates, the saving arising out of this is over Rs 200 crore. The MSRDC is also due to get 1,000 hectares from the state government which will yield a revenue of Rs 180 crore.

Indian Bank okays Rs 67cr fund

The Indian Bank on Saturday inked a Rs 67 crore funding plan to the MSRDC for 35 road-improvement projects in the state. Among theseis the Rs 13-crore bridge-expansion project on the highway from Aurangabad to Ajanta. The 35 projects were being carried out by the state PWD department but ran out of money before they could be completed. Since the MSRDC has sole rights of toll collection in the state, the MSRDC at the request of the state government has agreed to complete these projects by raising the funds commercially. A legislative amendment now allows the state to collect toll not just on new road, but where the road has been improved as well.