Archive · 13 Nov 2025
Maharashtra Approves ₹3,000 Crore State Guarantee for Nagpur Business Centre Loan
The Maharashtra government has promised to help pay back a loan of ₹3,000 crore if needed.
This loan is from a company called HUDCO and will be used to buy land.
The land is for a big new project in Nagpur called an International Business and Finance Centre.
This center is meant to make Nagpur a very important place for businesses and money matters in the middle of India.
The organization that will manage this project, called NMRDA, is the main one responsible for the loan.
But, if NMRDA cannot pay the loan, the government's promise can be used, but only after NMRDA tries to sell its own properties first.
There are strict rules to make sure the money is used correctly and that NMRDA makes regular payments.
Maharashtra government approved a ₹3,000 crore state guarantee for a loan from HUDCO.
The loan is intended for land acquisition to establish an International Business and Finance Centre (IBFC) in Nagpur.
The IBFC project, part of the 'New Nagpur' initiative, will be developed by NMRDA on approximately 692.06 hectares.
The total loan from HUDCO is ₹6,500 crore, with the state guarantee specifically for the ₹3,000 crore land acquisition phase.
Stringent conditions apply, with NMRDA as the principal debtor and a requirement to sell NMRDA assets before invoking the government guarantee in case of default.
- Who
- Maharashtra Government and Nagpur Metropolitan Region Development Authority (NMRDA)
- What
- Approved a ₹3,000 crore state guarantee for a HUDCO loan to acquire land for the International Business and Finance Centre (IBFC) in Nagpur.
- When
- Wednesday, September 3 (Cabinet decision); published November 13, 2025
- Where
- Nagpur, Maharashtra
- Why
- To establish an International Business and Finance Centre (IBFC) to position Nagpur as a major business and financial hub in central India.
Government Perspective
Financial Responsibility
State Guarantee
Government Perspective
The state government provides a guarantee to facilitate the loan for a crucial development project.
Financial Responsibility
The government's role is conditional, requiring NMRDA to first sell its assets in case of default before the state guarantee is invoked.
NMRDA's Role
Government Perspective
NMRDA is the principal debtor responsible for the loan and its repayment.
Financial Responsibility
NMRDA must submit regular financial reports and progress updates to government departments.
Guarantee Fee and Penalties
Government Perspective
A guarantee fee is stipulated, payable by NMRDA.
Financial Responsibility
Strict penalty interest rates (16% and 24%) are defined for late payments, emphasizing financial discipline.
- Project Name
- International Business and Finance Centre (IBFC)
- Location
- Nagpur, Maharashtra (part of 'New Nagpur' initiative)
- Land Area for Project
- Approximately 692.06 hectares in Godhani (Khurd) and Ladgaon (Khurd)
- Total Loan from HUDCO
- ₹6,500 crore
- State Guarantee Amount
- ₹3,000 crore (for land acquisition phase)
- Guarantee Validity
- 12 months from the Government Resolution (GR) issuance date
- Principal Debtor
- Nagpur Metropolitan Region Development Authority (NMRDA)
- Guarantee Fee
- ₹0.50 per ₹100 per year of outstanding loan amount
